Partnership Classification Switching and Self-Employment Tax
Jessica I. Marschall, CPA, ISA AM December 5th, 2025 Partnership tax treatment requires clear classification of partner roles. The Internal Revenue Code distinguishes between general partners and limited partners, with significant consequences for self-employment tax liability and loss deduction eligibility. Taxpayers attempting to shift classifications based on immediate tax benefits create audit risk and potential […]
Read MorePass-Through Entity Tax Elections: Federal and State Tax Coordination Under Current Law
By Jessica I. Marschall, CPA, December 6th, 2025 Pass-Through Entity Tax (PTET) elections remain one of the most significant state tax planning mechanisms available to partnerships and S corporations following changes to federal itemized deduction limitations. Understanding how PTET operates at both the entity and individual level is essential for tax planning, particularly for high-income […]
Read MoreOpportunity Zones 2.0: A New Era of Community Investment Under the One Big Beautiful Bill Act
By Jessica Irving Marschall, CPAPresident, MAS LLC November 21st, 2025 Introduction The landscape of place-based economic development changed dramatically with the passage of the One Big Beautiful Bill Act (OBBBA or OB3), which fundamentally transformed the Opportunity Zones program from a temporary experiment into a permanent fixture of American tax policy. For tax professionals, […]
Read MoreWorker Classification & 1099 Compliance Guide
Jessica I. Marschall, CPA, ISA AM, October 21st, 2025 Worker Classification: IRS Framework The IRS uses a three-factor test to determine worker status: If you retain the right to control work details, the worker is generally an employee. Key tool: Form SS-8 requests IRS determination. The IRS maintains a searchable database of redacted determinations for […]
Read MoreFinishing Extension Season: Clients and Businesses Face Significantly Rising Healthcare Costs as ACA Premium Tax Credits Near Expiration
Jessica I. Marschall, CPA October 15th, 2025 As we finish extension season, it is clear that our clients and their businesses are not prepared for the significantly rising healthcare costs that are already implemented due to rising costs, but this is especially important if the Affordable Care Act Premium Tax Credits expire. If Congress does […]
Read MoreThe Strategic Advantage of Separating Rental Properties into Individual LLCs
By Jessica I. Marschall, CPAOctober 12, 2025 As a CPA advising real estate investors, one of the most critical structural decisions I discuss with clients is how to hold rental properties within limited liability companies (LLCs). While forming a single LLC to hold multiple properties may seem simpler and more cost-effective, the strategy of placing […]
Read MoreEstimated Income Taxes: What They Are, When They Are Due, and How to Stay in the Safe Harbor
Understanding Pay-As-You-Go Taxation The U.S. income tax system operates on a pay-as-you-go basis, requiring taxpayers to remit taxes throughout the year rather than in a single annual payment. When sufficient tax is not paid during the year through withholding or quarterly estimated payments, the Internal Revenue Code (IRC) §6654 imposes an addition to tax—essentially a […]
Read MorePreferred Returns vs. Guaranteed Payments: Why Drafting Your Operating Agreement Correctly Matters
Jessica I. Marschall, CPA September 24th, 2025 When raising capital through an LLC or partnership, it is common for investors to negotiate a “preferred return.” For example, a 15 percent annual rate on contributed capital, plus the potential for additional upside. The hidden risk is that if not structured properly, that preferred return could be […]
Read MoreReal Estate Provisions of the One Big Beautiful Bill Act: What Developers, Investors, and Owners Need to Know
Jessica I. Marschall, CPA, ISA AM August 30th, 2025 The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025 as Public Law 119-21, represents the most comprehensive tax overhaul for the real estate industry since the Tax Cuts and Jobs Act of 2017. This legislation permanently extends key TCJA provisions while […]
Read MoreOBBBA 2025: Expensing Software Development Costs Under New Section 174A—Still Consider Amortization?
By Jessica I. Marschall, CPA, ISA AM The One Big Beautiful Bill Act (OBBBA) enacted significant changes to the treatment of research and development (R&D) expenditures, including software development. For tax years beginning after December 31, 2024, domestic software development costs that qualify as R&D may be immediately expensed rather than capitalized. This represents a […]
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