The Cummings & Cummings Law Journal

Understanding Small Business Tax Credits Small business tax credits are essential tools that can significantly reduce the tax liability of a small business. Unlike tax deductions, which reduce taxable income, tax credits directly reduce the amount of tax owed, often on a dollar-for-dollar basis. This can be particularly beneficial for small businesses looking to maximize

Understanding the Importance of Tax Planning Tax planning is a crucial component of business strategy that allows companies to minimize their tax liability within the legal framework. By proactively managing tax obligations, businesses can ensure compliance while optimizing their financial health. Effective tax planning involves a comprehensive understanding of tax laws and regulations, which can

What is Pass-Through Taxation? Pass-through taxation is a tax mechanism that allows business income to be taxed at the individual owner’s personal tax rate rather than at the corporate level. This taxation structure is notably beneficial for small and medium-sized business owners looking to avoid the double taxation that C corporations typically face. In essence,

The expansion of accounting firms into legal services in the United States is a direct response to evolving regulatory frameworks and strategic business imperatives. Historically, stringent state bar and accountancy rules prohibited non-attorneys from owning law firms and non-CPAs from owning accounting firms. However, recent changes in certain jurisdictions have facilitated new business structures that

As the tax deadline approaches, many filers find themselves in need of last-minute assistance. While professional tax advisors typically charge for their services, there are still reputable ways to obtain free guidance. Here is how taxpayers can find trustworthy help without falling victim to misinformation or scams. 1. The IRS Website and Interactive Tools The

Form 1065, U.S. Return of Partnership Income, is the IRS tax form used by partnerships to report income, deductions, gains, losses, and other financial information. Since partnerships are pass-through entities, they do not pay taxes at the entity level. Instead, the tax obligations pass through to individual partners, who report their share of the income

A recent inquiry raised important questions regarding the enforceability of home replacement contingencies in real estate contracts. The scenario involved a seller who was simultaneously attempting to sell an existing home and purchase a new residence. Due to unforeseen circumstances, namely, the loss of employment, the seller was no longer able to proceed with the

The expectation that attorneys should be available at all hours of the day and night is, in large part, a product of fictionalized portrayals of legal work in popular media. While certain practice areas—such as criminal defense and those indicating emergency injunctions—necessarily require after-hours availability, the notion that all attorneys must be hyper-responsive at all

Filing taxes is one of those annual tasks that most people dread. But beyond the stress and paperwork, many taxpayers operate under misconceptions about the process—some of which can lead to frustration, missed opportunities, or even costly mistakes. As an experienced tax attorney and CPA, I have witnessed firsthand how these misunderstandings can create unnecessary

From the perspective of an experienced first-party insurance attorney who has handled numerous property damage claims—including those arising from catastrophic wildfires such as the Marshall Fire in Louisville, Colorado in December 2021—homeowners often make critical errors when filing and attempting to resolve their claims. These mistakes can lead to unnecessary delays, denials, or underpayments. Below

With tax season around the bend, I have compiled a few pointers on the mortgage interest tax deduction for U.S. taxpayers. What is a Form 1098? The 1098 is an IRS form that reports the amount of mortgage interest paid by a homeowner during the tax year. Lenders (banks and mortgage companies) provide this form

Recently, someone shared this Reddit post with me and requested my take. The poster described how their “[l]andlord locked the thermostat in the middle of winter to ‘prevent’ the boiler losing pressure . . . It still drops pressure leaving us without heating or hot water every few days” and posted a photo of a

Maximizing your Social Security benefits is not just about when you claim them—it also involves smart tax strategies to ensure you keep more of your hard-earned money. Many retirees unknowingly pay unnecessary taxes on their benefits, reducing their monthly income. In this article, we explore three proven tax strategies to help you optimize your Social

House hacking has become a popular real estate strategy, particularly as home prices and interest rates have risen. By renting out part of a primary residence—whether a spare bedroom, a basement unit, or a duplex—homeowners can offset their mortgage costs and build equity at the same time. However, this hybrid approach to homeownership brings unique

The pandemic fundamentally reshaped how organizations approach risk management, internal audit, and business resiliency. As businesses adapted to sudden disruptions, assurance functions evolved to meet new challenges, embracing real-time risk monitoring, enhanced data analytics, and more integrated compliance strategies. Now, with a new administration poised to implement regulatory changes—particularly around ESG disclosures, cybersecurity oversight, and

Yesterday, I covered several residential real estate-specific federal income tax deductions available to current and prospective homeowners; in this post, I am broadening my focus to cover deductions from a general perspective. Navigating federal income taxes can feel overwhelming, especially when deciding whether to itemize deductions or take the standard deduction. For the 2024 tax

As a tax attorney and CPA, I often work with homeowners who are navigating the complex world of federal income taxes. For homeowners, there are unique tax deductions available that can reduce taxable income and increase potential refunds. However, most of these deductions are only available if you itemize your deductions instead of taking the

I am receiving calls from current and prospective clients alike seeking to mitigate their payment of property taxes, particularly in light of the recent hurricane season. In fact, I was recently featured on WINK-TV news on this topic. I am summarizing, in an outline format, some of the considerations of current and would be homeowners

Several of my clients are tax and audit practitioners operating small- and medium-sized compliance and advisory firms. In view of the forthcoming policy changes signaled by the incoming administration, here is a synopsis of some of the inquiries I have received from this audience in recent weeks: Following the inauguration of President Trump on Monday,