Tax planning, business advisory, and accounting insights from Fraim, Cawley & Company, CPAs.https://fraimcpa.com/en-ushttps://fraimcpa.com/virginia-agriculture-tax-benefits/https://fraimcpa.com/virginia-agriculture-tax-benefits/If you own or operate a farm in Virginia, it is easy to hear “farm tax benefits” and assume it all falls under one big program. It does not. Virginia agriculture tax benefits operate through three separate systems: sales and use tax exemptions, Virginia income tax credits, and local land use-value assessment. Each has its […]Tue, 23 Jun 2026 23:06:10 GMThttps://fraimcpa.com/common-cash-flow-problems-small-businesses/https://fraimcpa.com/common-cash-flow-problems-small-businesses/Cash flow problems can break a business faster than a lack of sales. We’ve seen profitable companies panic over payroll, delay tax payments, and lean on credit cards simply because cash was not arriving when it was needed. In this guide, I’ll walk through the most common cash flow problems small businesses face, why profit […]Tue, 23 Jun 2026 22:46:52 GMThttps://fraimcpa.com/inventory-timing-and-how-it-can-affect-your-taxes/https://fraimcpa.com/inventory-timing-and-how-it-can-affect-your-taxes/If you sell products, one of the easiest ways to get surprised at tax time is through inventory. We see this often: a business owner spends heavily on inventory, looks at the bank balance, and assumes taxable income must be low. Then the tax return tells a different story. The problem is simple but important: […]Tue, 23 Jun 2026 22:31:30 GMThttps://fraimcpa.com/pet-animal-tax-write-offs/https://fraimcpa.com/pet-animal-tax-write-offs/We love animals. Most pet owners do. And if you have ever paid for food, vet visits, grooming, medicine, boarding, or an emergency surgery, you have probably had the same thought at least once: surely some of this should be tax deductible. Usually, it is not. That is the plain tax answer. Most pet expenses […]Tue, 23 Jun 2026 12:24:40 GMThttps://fraimcpa.com/hiring-senior-tax-accountant/https://fraimcpa.com/hiring-senior-tax-accountant/We are looking for an experienced tax accountant who wants more than repetitive tax return preparation. This role is for someone who can prepare business and individual tax returns, think through tax issues, communicate clearly with clients, and help business owners make better tax and financial decisions. Depending on experience, the role may also include […]Thu, 04 Jun 2026 14:27:16 GMThttps://fraimcpa.com/selling-an-online-business-cpa-guide/https://fraimcpa.com/selling-an-online-business-cpa-guide/If you plan to sell an online business, your tax bill is not just a filing issue at closing. It is a deal-structure issue, an entity issue, a timing issue, and often a negotiation issue. Most sellers focus almost entirely on valuation: the multiple, the headline purchase price, and whether the offer feels fair. But […]Wed, 03 Jun 2026 04:36:32 GMThttps://fraimcpa.com/virginia-income-taxes-high-earners/https://fraimcpa.com/virginia-income-taxes-high-earners/If you earn a high income in Virginia, it is easy to assume your state tax return is simple: top rate is 5.75%, file the forms, move on. That assumption is where people get blindsided. Virginia looks straightforward on the surface, but high earners run into a series of rules that quietly change the real […]Thu, 28 May 2026 04:57:12 GMThttps://fraimcpa.com/business-cash-flow-loans-cpa-guide/https://fraimcpa.com/business-cash-flow-loans-cpa-guide/If your business is short on cash, a loan can look like the fastest fix. Sometimes it is. Sometimes it turns a temporary problem into a much bigger one. As a CPA, I look at business cash flow loans through one lens: does this financing solve the actual problem without putting the company in a […]Tue, 26 May 2026 04:04:16 GMThttps://fraimcpa.com/capital-gains-tax-home-farm-sale-in-virginia/https://fraimcpa.com/capital-gains-tax-home-farm-sale-in-virginia/Selling appreciated real estate in Virginia can trigger a bigger tax bill than most owners expect. A home sale may qualify for the federal home-sale exclusion, but a rental property, farm, inherited property, or mixed-use property can bring in other issues: Virginia income tax, federal capital gains tax, the 3.8% Net Investment Income Tax, depreciation […]Mon, 11 May 2026 02:56:06 GMThttps://fraimcpa.com/cfo-vs-cpa-when-you-need-each-one/https://fraimcpa.com/cfo-vs-cpa-when-you-need-each-one/If you’re trying to decide between hiring a CPA, a CFO, or both, the simplest answer is this: a CPA helps make sure the numbers are right, while a CFO helps you use those numbers to make better decisions. That distinction matters more than most business owners realize. The wrong financial support can leave you […]Mon, 11 May 2026 02:05:44 GMThttps://fraimcpa.com/virginia-research-and-development-tax-credit/https://fraimcpa.com/virginia-research-and-development-tax-credit/Virginia’s R&D tax credits have expired. For taxable years beginning on or after January 1, 2025, Virginia businesses generally can no longer earn the state Research and Development Expenses Tax Credit or the Major Research and Development Expenses Tax Credit. (Virginia Code §58.1-439.12:08; Virginia Code §58.1-439.12:11) That does not make the issue irrelevant. Businesses may still […]Mon, 11 May 2026 01:30:19 GMThttps://fraimcpa.com/str-loophole-offset-income-short-term-rental-losses/https://fraimcpa.com/str-loophole-offset-income-short-term-rental-losses/If you earn strong W-2 income, you’ve probably heard the frustrating rule: rental losses usually can’t offset your salary. For most long-term rentals, that’s true. Short-term rentals are different. Under the right structure, a short-term rental can produce large first-year paper losses that may offset W-2 income or other non-passive income without needing real estate […]Mon, 04 May 2026 22:14:03 GMThttps://fraimcpa.com/big-list-tax-deductions/https://fraimcpa.com/big-list-tax-deductions/Q: What tax deductions do most small businesses miss? A: Nearly every “ordinary & necessary” expense – advertising, software, contract labor, insurance, rent, supplies – can be deducted. The main traps are gifts over $25, entertainment, nondeductible personal-benefit costs (clothing, childcare) and assets that must be depreciated instead of expensed. TL;DR (quick cheat-sheet) Always deductible […]Mon, 04 May 2026 17:51:36 GMThttps://fraimcpa.com/g-wagon-tax-deduction-strategy/https://fraimcpa.com/g-wagon-tax-deduction-strategy/If you are eyeing a G-Wagon and telling yourself it is a business deduction, you are not alone. Social media has turned Section 179 into a luxury-SUV sales pitch. The problem is that a lot of the advice floating around is incomplete, outdated, or missing the IRS rules that actually matter. (irs.gov) A G-Wagon can […]Tue, 14 Apr 2026 07:03:58 GMThttps://fraimcpa.com/solo-401k-vs-sep-ira-which-is-better/https://fraimcpa.com/solo-401k-vs-sep-ira-which-is-better/If you run a business as a sole proprietorship, LLC, partnership, or S-Corp, choosing the right retirement plan can materially affect both your tax deduction and how much you can actually save. A SEP IRA is popular mainly because it is easy. That does not mean it is usually the better tax move. In a lot […]Tue, 14 Apr 2026 06:46:04 GMThttps://fraimcpa.com/suv-over-6000-that-qualify-tax-deductions/https://fraimcpa.com/suv-over-6000-that-qualify-tax-deductions/If you are shopping for an SUV in 2026 because you have heard you can “write off the whole thing,” the first thing to know is that the rule is more specific than that. The better tax treatment generally starts when a vehicle is over 6,000 pounds GVWR (“Gross Vehicle Weight Rating”), used more than […]Tue, 14 Apr 2026 05:56:34 GMThttps://fraimcpa.com/how-to-claim-100-percent-bonus-depreciation/https://fraimcpa.com/how-to-claim-100-percent-bonus-depreciation/If you are hearing that “100% bonus depreciation is back” and wondering what that means for your 2026 tax bill, the basic answer is that many businesses can once again deduct the full cost of qualifying property in the first year. But the part that trips people up is timing. This is not just a […]Tue, 31 Mar 2026 05:50:39 GMThttps://fraimcpa.com/safe-harbor-rule-how-to-avoid-irs-penalties/https://fraimcpa.com/safe-harbor-rule-how-to-avoid-irs-penalties/If you’ve ever been hit with an IRS underpayment penalty, you already know how annoying it is. It is one of the most avoidable penalties in the tax code, yet people get tagged with it every year because they misunderstand one basic point: the U.S. tax system is pay-as-you-go. The IRS does not just care […]Wed, 25 Mar 2026 06:47:17 GMThttps://fraimcpa.com/wash-sale-rule-crypto-stocks/https://fraimcpa.com/wash-sale-rule-crypto-stocks/If you’re selling investments at a loss and buying them back too quickly, you can accidentally trigger one of the IRS’s most misunderstood rules: the wash sale rule. The stakes are real. A single mistimed trade can wipe out a legitimate tax deduction, push that loss into the future, and create reporting issues that are […]Wed, 25 Mar 2026 05:44:57 GMThttps://fraimcpa.com/real-estate-professional-status-reps-tax-guide/https://fraimcpa.com/real-estate-professional-status-reps-tax-guide/If you invest in real estate and feel trapped by taxes, you’re not imagining it. Most investors are boxed into passive loss limits, forced to carry forward deductions for years, and often exposed to the 3.8% Net Investment Income Tax (NIIT) on top of everything else. Real Estate Professional Status (REPS) is one of the […]Thu, 19 Mar 2026 06:38:25 GMThttps://fraimcpa.com/hiring-children-tax-breaks-guide/https://fraimcpa.com/hiring-children-tax-breaks-guide/If you’ve heard “hire your kids and it’s all tax-free,” you’ve heard the version that gets people in trouble. The real version is simpler and more boring: you can deduct wages paid to your child for legitimate work and, in the right unincorporated setup, those wages can also be exempt from FICA (under 18) and FUTA (under 21). Separately, the […]Mon, 23 Feb 2026 02:14:57 GMThttps://fraimcpa.com/augusta-rule-rental-deduction/https://fraimcpa.com/augusta-rule-rental-deduction/The Augusta Rule (IRC §280A(g)) is one of the most powerful – and most misunderstood – tax strategies available to S-Corp and LLC owners. When used correctly, you can rent your home to your business for up to 14 days per year, deduct the expense on your business return, and pay zero income tax on […]Thu, 19 Feb 2026 03:35:43 GMThttps://fraimcpa.com/2026-tax-calendar/https://fraimcpa.com/2026-tax-calendar/2026 and all of its tax deadlines are here. Below is a quick reference guide to the most important dates to keep in mind this calendar year. January 15th: due date to pay 4th quarter estimated taxes. February 2nd: Due date to send out 1099s and W-2s to recipients. Due date to file 1099-NECs and […]Fri, 02 Jan 2026 09:00:12 GMThttps://fraimcpa.com/s-corp-qbi-deduction-strategy/https://fraimcpa.com/s-corp-qbi-deduction-strategy/Q: How can S-Corp owners maximize their QBI deduction? A: By strategically adjusting W-2 wages. For high-income S-Corp owners, the QBI deduction is limited by wage thresholds. Paying too little in salary can eliminate the deduction entirely – while a properly optimized salary can unlock tens of thousands in tax savings. But the salary must […]Fri, 01 Aug 2025 12:33:31 GMThttps://fraimcpa.com/obbba-vs-tcja-tax-changes/https://fraimcpa.com/obbba-vs-tcja-tax-changes/Q: What are the biggest tax changes in the One Big Beautiful Bill Act compared to an expiring TCJA? A: OBBBA locks several TCJA breaks in place and softens others. QBI stays permanent, the child credit rises to $2,200, the standard deduction is permanently increased, SALT gets a four‑year $40k cap, Pease is repealed, and […]Wed, 23 Jul 2025 14:23:56 GMThttps://fraimcpa.com/sole-proprietorship-llc-s-corp-c-corp/https://fraimcpa.com/sole-proprietorship-llc-s-corp-c-corp/Q: Which business entity saves the most tax – sole proprietor, LLC, S-Corp, or C-Corp? A: For owner-operated businesses above roughly $50k profit, an S-Corp usually wins: it slashes self-employment tax on distributions without double taxation. Single-member LLCs add liability protection but no tax break, partnerships keep the full 15.3% SE hit, and C-Corps look […]Wed, 16 Jul 2025 12:00:01 GMThttps://fraimcpa.com/qsbs-tax-exclusion-guide/https://fraimcpa.com/qsbs-tax-exclusion-guide/Q: Does the $10 million/$15 million QSBS exclusion make a C-Corp the best structure for most small-business owners? A: Rarely. QSBS can erase capital-gains tax, but only when you: (1) run a domestic C-Corp, (2) meet every §1202 rule for all required years (3) find a buyer willing to do a stock sale, and (4) […]Thu, 10 Jul 2025 09:00:46 GMThttps://fraimcpa.com/ncti-tax-strategy-expats/https://fraimcpa.com/ncti-tax-strategy-expats/Q: Can the 10.5% Net CFC Tested Income (NCTI) regime really beat an S-Corp for a small-business owner? A: Only in very specific circumstances. Under the Net CFC Tested Income (NCTI – formerly GILTI), the structure can win if you’re a high-earning US expat who (1) routes profits through a US C-Corp that owns a bona fide foreign subsidiary, (2) […]Tue, 01 Jul 2025 09:00:09 GMThttps://fraimcpa.com/pass-through-entity-tax-ptet/https://fraimcpa.com/pass-through-entity-tax-ptet/Q: Is electing a state Pass-Through Entity Tax (PTET) always a smart SALT-cap workaround? A: Almost always – but not universally. PTET converts state tax into a deductible business expense, cutting federal tax. It can backfire only in edge cases, mainly when (1) you already get the full SALT benefit on Schedule A or (2) […]Thu, 26 Jun 2025 09:00:14 GMThttps://fraimcpa.com/s-corp-partnership-self-employment-tax/https://fraimcpa.com/s-corp-partnership-self-employment-tax/Q: Can I avoid self-employment tax on partnership profits by having an S-Corp own my LLC interest? A: Yes – if structured correctly. The S-Corp pays you a reasonable salary (subject to payroll tax) and passes the remaining income as distributions that escape self-employment tax. But the entity must have real business purpose, pay reasonable […]Thu, 19 Jun 2025 12:00:27 GMThttps://fraimcpa.com/avoid-state-income-tax/https://fraimcpa.com/avoid-state-income-tax/Q: Can I avoid my home-state income tax by registering my business in a no-tax state like Wyoming or Nevada? A: No. Your resident state taxes income where you live and work, regardless of where the entity is registered. Only changing legal residency and shifting business activity can eliminate that tax. TL;DR: Pass-through income follows […]Fri, 13 Jun 2025 09:40:28 GMThttps://fraimcpa.com/s-corp-reasonable-salary-guide/https://fraimcpa.com/s-corp-reasonable-salary-guide/Q: How do I determine a “reasonable salary” for my S-Corp? A: Start with what you’d pay an unrelated employee to do your job, then adjust for profit, duties, time spent, and local market data. Pay at least that amount as W-2 wages; treat the rest of the profit as distributions. Too low invites IRS […]Fri, 06 Jun 2025 08:55:29 GMThttps://fraimcpa.com/business-vs-personal-deductions-irs-rules/https://fraimcpa.com/business-vs-personal-deductions-irs-rules/Q: Can I deduct expenses that provide a personal benefit – like business suits, cosmetic work, therapy, or pet care? A: Almost never. The IRS allows a deduction only when a cost is both “ordinary & necessary” for the business and provides no personal benefit that’s adaptable to everyday life. Rare exceptions exist but require […]Fri, 30 May 2025 09:00:05 GMThttps://fraimcpa.com/c-corp-licensing-agreement-risk/https://fraimcpa.com/c-corp-licensing-agreement-risk/Q: Does moving income through a licensing agreement between my S-Corp and a C-Corp safely reduce tax? A: Only if it’s real. The deal must serve a bona-fide business purpose, charge arm’s-length royalties / commissions, and be fully documented – otherwise the IRS can disallow the deduction and you could end up paying tax on […]Thu, 22 May 2025 08:30:29 GMThttps://fraimcpa.com/hybrid-c-corp-s-corp-tax-strategy/https://fraimcpa.com/hybrid-c-corp-s-corp-tax-strategy/Q: Does pairing a C-Corp with an S-Corp actually lower your overall tax bill? A: Only in narrow cases. Splitting income lets you defer the second layer of C-Corp tax, but you must leave profits inside the C-Corp for years and avoid Accumulated Earnings Tax penalties. TL;DR Defers double taxation only if profits stay in […]Fri, 16 May 2025 08:14:15 GMThttps://fraimcpa.com/c-corp-vs-s-corp-tax-savings-myth/https://fraimcpa.com/c-corp-vs-s-corp-tax-savings-myth/Q: Does the 21% corporate tax rate make a C-Corp cheaper than an S-Corp? A: No. After double taxation and lost pass-through benefits, most owners pay more overall with a C-Corp. TL;DR Corporate tax (21%) plus dividend tax (up to 23.8%) usually exceeds a top-bracket S-Corp rate. You lose the 20% QBI deduction and state […]Fri, 09 May 2025 13:34:20 GMThttps://fraimcpa.com/tax-cuts-and-jobs-act-expiration-2026/https://fraimcpa.com/tax-cuts-and-jobs-act-expiration-2026/Q: What happens to my taxes when the Tax Cuts and Jobs Act expires after 2025? A: They almost certainly go up. The 20% QBI deduction vanishes, tax brackets shift higher, AMT thresholds plunge, the standard deduction shrinks, and dozens of “temporary” breaks end – unless Congress extends the legislation. TL;DR QBI gone. Pass-through owners […]Fri, 02 May 2025 10:35:10 GMThttps://fraimcpa.com/2025-tax-calendar/https://fraimcpa.com/2025-tax-calendar/2025 and all of its tax deadlines are upon us! Below is a quick guide of the most important dates to keep in mind this calendar year. January 15th: due date to pay 4th quarter estimated taxes. January 31st: Due date to send out 1099s and W-2s to recipients. Due date to file 1099-NECs and […]Thu, 02 Jan 2025 12:00:57 GMThttps://fraimcpa.com/2024-tax-calendar/https://fraimcpa.com/2024-tax-calendar/2024 and all of its tax deadlines are upon us! Below is a quick guide of the most important dates to keep in mind this calendar year. January 16th: due date to pay 4th quarter estimated taxes. January 31st: Due date to send out 1099s and W-2s to recipients. Due date to file 1099-NECs and […]Tue, 02 Jan 2024 11:40:28 GMThttps://fraimcpa.com/what-done-lately-fresh-look/https://fraimcpa.com/what-done-lately-fresh-look/“How much you want to make a bet I can throw a football over them mountains? Yeah. If coach would’ve put me in fourth quarter…we’d have been state champions, no doubt. No doubt in my mind. You better believe things would have been different. I’d have gone pro…in a heartbeat. I’d be making millions of […]Wed, 29 Mar 2023 17:30:53 GMThttps://fraimcpa.com/hiring-tax-preparer-bookkeeper/https://fraimcpa.com/hiring-tax-preparer-bookkeeper/We offer an extremely flexible work environment – both in terms of schedule and work-from-home opportunities. With that, the person taking this job will need to be a self-starter and able to manage themselves. We are generally here as resources for when employees need assistance, but otherwise people generally go about their day-to-day autonomously. Anyone […]Thu, 19 Jan 2023 14:31:52 GMThttps://fraimcpa.com/2023-tax-calendar/https://fraimcpa.com/2023-tax-calendar/2023 and all of its tax deadlines are upon us! Below is a quick guide of the most important dates to keep in mind this calendar year. January 17th: due date to pay 4th quarter estimated taxes. January 31st: Due date to send out 1099s and W-2s to recipients. Due date to file 1099-NECs and […]Tue, 03 Jan 2023 12:53:51 GMThttps://fraimcpa.com/peter-lely-painter-automation/https://fraimcpa.com/peter-lely-painter-automation/“He was able to turn out thousands of paintings over his lifetime while his contemporaries were lucky to turn out a hundred” – Mike Michalowicz discussing Sir Peter Lely A while back I was talking with a friend and client (Mitch Wilder) about how I’ve been feeling increasingly underwater lately. The firm has continued to […]Thu, 13 Oct 2022 19:01:54 GMThttps://fraimcpa.com/hiring-tax-accountant/https://fraimcpa.com/hiring-tax-accountant/Calling all talented TAX ACCOUNTANTS who want MORE. We’re looking for the best and brightest tax expert to join us. And not just as a salaried tax accountant/tax manager, but also with production bonuses as well.Tue, 15 Feb 2022 10:56:13 GMThttps://fraimcpa.com/2022-tax-calendar/https://fraimcpa.com/2022-tax-calendar/2022 and all of its tax deadlines are upon us! Below is a quick guide of the most important dates to keep in mind this calendar year. January 18th: due date to pay 4th quarter estimated taxes. January 31st: Due date to send out 1099s and W-2s to recipients. Due date to file 1099-NECs (formerly […]Mon, 03 Jan 2022 12:00:26 GMThttps://fraimcpa.com/on-pain/https://fraimcpa.com/on-pain/“Your pain is the breaking of the shell that encloses your understanding. […] Much of your pain is self-chosen. It is the bitter potion by which the physician within you heals your sick self. Therefore trust the physician, and drink his remedy in silence and tranquility” – On Pain by Kahlil Gibran This past […]Wed, 21 Apr 2021 15:27:10 GMThttps://fraimcpa.com/2021-tax-calendar/https://fraimcpa.com/2021-tax-calendar/2021 and all of its tax deadlines are upon us! Below is a quick guide of the most important dates to keep in mind this calendar year. January 15th: due date to pay 4th quarter estimated taxes. February 1st: Due date to send out 1099s and W-2s to recipients. Due date to file 1099-NECs (formerly […]Mon, 04 Jan 2021 13:10:12 GMThttps://fraimcpa.com/billie-holiday-lessons-learned/https://fraimcpa.com/billie-holiday-lessons-learned/“I don’t think I ever sang the same way twice. And I don’t think I ever sang the same tempo. One night is a little bit slower and the next night is a little bit brighter. It depends on how I feel. I don’t know, blues is sort of a mixed-up thing. You just have […]Tue, 15 Dec 2020 15:06:57 GMThttps://fraimcpa.com/dont-think-twice-alright-business-lessons/https://fraimcpa.com/dont-think-twice-alright-business-lessons/That was my absolute favorite song for most of my teenage years. I had a visceral reaction to it and it touched me on a deep level. Because it matched what I was going through at the time (or at least what I thought I was going through – “love” at that age is quite the mercurial thing.)Wed, 12 Aug 2020 12:21:05 GMThttps://fraimcpa.com/balance-transfers/https://fraimcpa.com/balance-transfers/Longtime readers will remember that I have a more favorable view on debt than most – the right types of debt that is. We’ve written about the dangers of excessive debt, but more often have talked about how the intelligent use of debt can be quite advantageous (examples can be found here, here, and here). […]Wed, 06 May 2020 17:30:49 GMT