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Maximize Tax Deductions & Credits Before the April 15th Filing Deadline

Posted on by Michelle Antico

As the upcoming tax season approaches, it’s time to maximize tax deductions and credits to ensure you get the most out of your return. Tax deductions and credits are a powerful way to reduce overall tax liability and keep money in your pocket. Many taxpayers miss out on valuable deductions simply because they aren’t aware of them. 

In this blog, we will outline some commonly overlooked individual tax deductions and credits and provide a few helpful reminders you might want to consider as the April 15 filing deadline draws near.

What Does Maximizing Deductions and Credits Mean?

Maximizing deductions and credits means using the most deductions and tax credits possible to reduce your taxable income. This usually means deciding whether to itemize your deductions or just take the standard deduction. If you have a lot of deductible expenses, like mortgage interest or donations, itemizing might save you more. But if not, the standard deduction could be the better choice. The goal is to reduce your tax bill as much as possible.

Creative Tax Deductions To Consider This Year

Tax deductions are more than just a way to save money—they’re a powerful tool to maximize your financial health. By exploring our top five recommendations, you’ll discover smart strategies to keep more of your hard-earned income.

Max Out Your Traditional IRA Contributions by April 15th

A traditional IRA is a retirement savings account that allows you to contribute pre-tax income, which can reduce your taxable income for the year. The funds within the account grow tax-deferred, meaning you won’t pay taxes on any earnings until you withdraw the money during retirement. This provides an immediate tax benefit, as you reduce your current taxable income while saving for your future.

You can contribute to a traditional IRA until April 15th, 2025 to receive a tax deduction on your 2024 tax return. In 2024, the IRA contribution limit is increased to $7,000 ($8,000 for individuals age 50 or older). Deductible contributions may be subject to limitations depending on whether an employer plan and your income level cover you.

Make Strategic (and Thoughtful) Charitable Donations

Charitable giving not only supports causes you care about but can also lower your taxes. To maximize tax deductions and benefits, start by understanding the standard deduction vs. itemizing. The standard deduction offers a set amount ($14,600 for single filers and $29,200 for joint filers in 2024), which is simpler if your qualifying deductions don’t exceed this limit. If they do, itemizing may save you more—and tracking all charitable contributions becomes vital.

Keep receipts and acknowledgment letters for your personal tracking purposes and in case of an audit. For cash donations, you must have a record of the contribution, such as a bank statement or credit card receipt or a written acknowledgment from the charity for donations of $250 or more.

You must keep a detailed record of what you gave for non-cash donations like clothing, household goods, or furniture. The IRS requires a description of the items donated, their fair market value, and, in some instances, an appraisal.

Review Your Interest Payments

No, interest isn’t always bad. Yes, you can actually take advantage of most of the interest you’ve paid in 2024.

You can deduct up to $2,500 in student loan interest paid in 2024 on your tax return. The good news is that this is an “above-the-line” deduction, meaning you don’t have to itemize your deductions to take advantage of it. You can still benefit from this tax break even if you take the standard deduction.

Similarly, homeowners may benefit from deducting mortgage interest if they opt to itemize their deductions. Mortgage interest applies to loans used to buy, build, or improve your primary or secondary home, and it can significantly reduce your taxable income, especially in the early years of your mortgage when interest payments are higher.

To claim this deduction, look out for Form 1098 from your mortgage lender, which outlines the total mortgage interest you paid for the year. This information is generally sent to you in January, making it easier to accurately file your tax return and potentially save thousands.

Deduct Home Office Expenses

You may be eligible for the Home Office Deduction if you used a portion of your home regularly and exclusively for business.

The deduction allows for expenses directly related to the office space, such as painting or repairs. You can also deduct expenses indirectly related to that portion of your home, such as rent, utilities, and insurance.

Bonus: Tax Break for Teachers

Teachers and other eligible educators can deduct up to $300 of unreimbursed expenses for classroom supplies for grades K-12. This includes things like:

  • Books
  • Art supplies 
  • Software (computers, laptops, tablets) and related services (IT support) 

Keep in mind that health or physical education supplies like equipment only qualify for athletics. 

Similar to the student loan interest deduction discussed above, you do not need to itemize on your tax return to receive this benefit.

Tax Credits You Need To Know About Before April

Tax deductions reduce the amount of income you’re taxed on, while tax credits directly lower the amount of taxes you owe—both offering valuable ways to save, but in different ways. Next, we’ll examine tax credits in detail and introduce two key opportunities to help you optimize your savings.

Consider the Child Tax Credit

If you have dependents 17 years old or younger, you may qualify for the Child Tax Credit. 

This credit is designed to relieve parents and guardians financially by reducing their tax bill dollar-for-dollar. For 2024, the Child Tax Credit is worth up to $2,000 per qualifying child. Of this amount, $1,700 may be refundable if your tax liability is lower than the credit. This means that even if you don’t owe taxes, you could receive a portion of the credit as a refund.

However, the credit phases out for higher-income earners. For single filers, the credit begins to phase out at an income of $200,000, and for married couples filing jointly, the phase-out starts at $400,000.

Look Into The Child and Dependent Care Credit

In 2024, did you pay for child care while you worked or looked for work?

The Child and Dependent Care Credit is designed to help working parents and guardians offset the costs of childcare or care for other dependents while working, seeking work, or attending school full-time. 

The amount of the credit is based on the expenses you incur, and it can range from 20% to 35% of up to $3,000 in care expenses for one child (or $6,000 for two or more children). For taxpayers with an adjusted gross income (AGI) over $43,000, the credit rate is generally 20% of the allowed expenses.

If you support an aging parent, you may qualify for this credit. To claim your parent as a dependent, you must provide over half their financial support and ensure their income does not exceed the IRS limit (e.g., $5,050 in 2024). Eligible care expenses, such as in-home care or adult daycare, could qualify you for a credit of $600 to $1,050 for one dependent, depending on your income. Proper documentation is essential to claim these savings.

Additional Tax Best Practices

Not knowing this could cost you, big.

Helpful Reminder – Don’t Forget that Filing an Extension Does Not Extend the Time to Pay!

While an extension allows you extra time to file your taxes, it’s important to understand that an extension to file is not an extension to pay. Taxing authorities expect you to estimate and pay your tax liability by the April 15th deadline. This is because the extension to October 15th is only designed to give you more time to prepare your return—not to provide you with more time to pay. 

If you miss the April 15th payment deadline, you could face several potential penalties, which can add up quickly depending on the total amount you owe.

  • Failure-to-Pay Penalty
  • Interest on Unpaid Taxes
  • Failure-to-File Penalty

Maximize Your Tax Deductions And Credits

Whether it’s through deductions or credits, understanding how to maximize tax deductions and credits can significantly reduce your tax burden. From contributing to retirement accounts like IRAs to making charitable donations, each decision you make can have a direct impact on your finances. 

But it’s not just about making the right moves—it’s also about staying organized, keeping accurate records, and being aware of deadlines. By staying informed and working with a tax professional when needed, you can ensure that you’re optimizing your tax benefits, saving money, and putting yourself in a stronger financial position year after year.

For more information, contact our experts today.

Microsoft 365 Copilot: Unlocking Productivity

Posted on by Michelle Antico

In today’s fast-paced digital world, efficiency is essential. Whether you are managing emails, analyzing data, or drafting reports, the tools you utilize can significantly impact your productivity. Enter Microsoft 365 Copilot, a powerful Generative-AI like ChatGPT. Let’s dive into what is Microsoft 365 Copilot and how does Microsoft 365 Copilot enhance productivity.

What is Microsoft 365 Copilot?

Microsoft 365 Copilot is an intelligent, AI-driven assistant embedded within the Microsoft 365 off suite. Powered by advanced models like GPT-4, Copilot enhances the capabilities of your favorite apps by automating repetitive tasks, offering smart suggestions, and streamlining complex workflows. It acts as your personal productivity assistant, helping you create content, analyze data, manage meetings, and more— all by simply interacting with natural language.

Microsoft Copilot is designed to save you time and effort, allowing you to focus on higher-value tasks. By using machine learning, Copilot adapts to your work style and offers increasingly relevant recommendations as you use it more.

How Microsoft 365 Copilot Integrates with Microsoft 365 Apps

One of Copilot’s most powerful features is its deep integration with key Microsoft 365 applications. Here’s a look at how it enhances the tools you already use:

  1. Microsoft Word

Drafting documents has never been easier. Copilot helps by generating content, rephrasing sentences for clarity, and even summarizing lengthy texts. Whether you’re writing a report or preparing a proposal, Copilot can offer suggestions for improving tone and style, making sure your documents are polished and ready to go.

  1. Microsoft Excel

Excel is a go-to tool for data analysis, but it can often be time-consuming. Copilot takes the heavy lifting out of analyzing data by automatically suggesting trends, generating complex formulas, and helping you visualize data with charts and graphs. It makes working with large datasets more accessible, even for those who aren’t Excel experts. Leveraging the power of Copilot, users can gain unique perspectives and insights into their data.

  1. Microsoft PowerPoint

Creating presentations is often a cumbersome task. Copilot simplifies it by offering design suggestions, generating slide content, and helping you structure your presentation. With Copilot, you can quickly turn ideas into a polished presentation with minimal effort, freeing you up to focus on your message.

  1. Microsoft Outlook

Managing emails and schedules can be overwhelming, but Copilot in Outlook helps by summarizing emails, drafting replies, and even prioritizing your inbox. Copilot also integrates with your calendar to suggest meeting times, highlight relevant documents, and even remind you of important tasks. It’s like having an assistant who helps you stay on top of everything.

  1. Microsoft Teams

In Microsoft Teams, Copilot assists with meeting summaries and action items. After meetings, Copilot can summarize key points and suggest follow-up tasks, ensuring no important detail is forgotten. This makes collaboration more efficient, especially for remote or hybrid teams.

The Biggest Benefits of Microsoft Copilot 365

  1. Increased Productivity

How does Microsoft 365 Copilot enhance productivity? Copilot automates many of the time-consuming tasks that usually eat up your day. From drafting emails to analyzing data, Copilot handles repetitive work, allowing you to focus on higher-priority tasks. With Copilot, you can accomplish more in less time.

  1. Streamlined Collaboration

With Copilot’s ability to summarize meetings, suggest tasks, and organize communication, collaborating with teams becomes more efficient. No longer will you have to sift through lengthy email chains or meeting notes to find key takeaways—Copilot does it for you.

  1. Enhanced User Experience

Even if you’re not an expert in every Microsoft 365 tool, Copilot makes it easy to get the most out of them. Its user-friendly interface and natural language capabilities allow you to interact with your tools effortlessly. Copilot’s adaptability means it learns from your work style, offering increasingly personalized assistance over time.

How Copilot 365 Works with AI and Data Privacy

Microsoft 365 Copilot is powered by AI models like GPT-4, allowing it to process natural language and provide relevant, real-time suggestions. It’s designed to learn from your behavior, becoming more innovative and efficient as you use it. However, privacy is always a concern with AI. Microsoft ensures that Copilot adheres to strict data security protocols, keeping your information safe and secure within the trusted Microsoft 365 environment.

How Wiss Can Help Get You Started

If your business is ready to leverage the full power of AI with Microsoft 365 Copilot, Wiss is here to help. Contact Wiss today to learn how Microsoft 365 Copilot can be tailored to your business needs, optimize your workflows, enhance team synergy, and foster a culture of innovation that propels your organization forward.

Microsoft 365 Copilot is a game-changing tool that takes productivity to the next level. With its seamless integration across Microsoft 365 apps like Word, Excel, PowerPoint, Outlook, and Teams, Copilot helps you work faster, collaborate more effectively, and streamline your day-to-day tasks. By using AI to automate repetitive tasks, offer smart suggestions, and assist with content creation, Copilot allows you to focus on what truly matters: achieving your goals.

Benefits of Using a Spend Management Software Platform

Posted on by Michelle Antico

In today’s business world, effective spend management software is vital for companies, especially growing ones, to maintain financial health and ensure long-term sustainability. By closely monitoring and controlling expenditures, businesses can optimize resource allocation, reduce unnecessary costs, and improve profitability. It also enhances transparency, allowing companies to identify patterns of waste and inefficiency. Proper spend management ensures compliance with budgets and financial goals, minimizing the risk of overspending or falling into debt.

What is Spend Management Software?

Spend management software platforms can help companies track, analyze, and control their spending, which is critical for maintaining financial stability and controlling costs. Many such platforms offer companies the ability to issue corporate cards, automate workflows, pay vendors, and process employee expense reimbursements, all managed in one location.

Benefits of Spend Management Software Platform

Below are some ways a spend management software platform can be helpful for growing companies:

Expense tracking: Spend management software platforms can manage expenses by tracking and categorizing them. This approach can give companies a comprehensive view of their financial position, transaction trends, and cash flow. This provides greater transparency, reducing the chance of overspending and enabling companies to keep track of their expenditure effectively.

Real-time insights: One of the major spend management benefits is access to real-time data. These insights can help companies make informed decisions. The data housed in these tools can be pulled into reports that help provide better visibility.

Budget control: Software platforms can empower growing companies to take control of their spend. By setting rules, spend policies, and restrictions within the platform, companies can ensure that their spending stays within a reasonable limit, enabling them to forecast spending and adjust where necessary to avoid budget overruns.

Automation: These platforms can help companies by streamlining key financial processes. It automates expense tracking and approval workflows, reducing manual data entry, minimizing human errors, and ultimately saving time.

Conclusion

To summarize, the spend management benefits offered by these software platforms are invaluable for growing companies. They can provide insights into spending habits, support better decision making, and help companies stay within budget. With a myriad of software platforms on the market, companies can choose the right options according to their spend control needs and desired features. It is important to invest in an appropriate solution to minimize risk, and maximize efficiencies, while also saving time and costs. In an increasingly competitive market, practicing disciplined spend management helps organizations stay agile, make informed decisions, and reinvest savings into growth opportunities.

For more information, contact our experts today.

AI in Accounting: Redefining the Industry

Posted on by Michelle Antico

Artificial Intelligence (AI) has long been touted as a game-changer for the accounting profession, with visions of fully automated financial operations and real-time insights. While some of these claims hold merit, others represent hype that can mislead firms into expecting “plug and play” miracles. Understanding the real capabilities of AI—and where it faces limitations—will help accountants and finance leaders make more informed, strategic decisions.

What is AI in Accounting?

AI in accounting refers to the use of artificial intelligence technologies to automate and enhance various financial processes. These tools can manage tasks like transaction processing, fraud detection, financial forecasting, and automated reporting. By using machine learning algorithms and advanced data analytics, AI in accounting can improve efficiency, reduce manual errors, and provide deeper insights into financial data.

For instance, machine learning algorithms can analyze historical financial data to predict future trends, while natural language processing can interpret and generate human-like financial reports. While AI handles repetitive and data-heavy tasks well, it still requires human oversight for complex decision-making and interpreting nuanced financial situations.

Hype vs. Reality: Finding the Balance

  1. AI Can Replace Accountants Entirely

  • Hype: Some claim AI will supplant the role of accountants.
  • Reality: AI excels at repetitive, rules-based tasks, but it can’t replicate the judgment, expertise, and client-focused relationships that define quality accounting work. At Wiss, we see AI as an enabler, not a replacement.

  1. Plug-and-Play Solutions

  • Hype: Vendors often present AI as a “drop-in” fix for all your accounting woes. 
  • Reality: Effective AI implementations require data integrity, system integration, and staff training. We’ve learned firsthand that success hinges on getting these fundamentals right before reaping AI’s benefits.

  1. AI is Doing Complex Reporting Automatically

  • Hype: Some believe large language models can churn out sophisticated financial statements or board reports with no human input.
  • Reality: AI can help draft standard narratives and highlight anomalies, but professional review is vital. Compliance, context, and ethics still require the human touch—that’s where our experienced team members come in.

Where AI in Accounting Is Delivering Real Results

  1. Bookkeeping and Transaction Processing
  • AI tools can sort thousands of invoices or bank transactions in record time, freeing our staff to focus on nuanced advisory work. By reducing repetitive data entry, we improve accuracy while giving our team room to tackle more strategic tasks.
  1. Fraud and Anomaly Detection
  • Machine learning can sift through vast amounts of data to spot irregularities that might slip past human reviewers. This level of real-time oversight strengthens our clients’ internal controls and safeguards their finances.
  1. Forecasting and Financial Analysis
  • AI doesn’t just gather historical figures—it can also predict trends and identify potential pitfalls. At Wiss, our professionals integrate these predictive insights with their own expertise, ensuring that decisions are data-informed yet strategically grounded.
  1. Automated Month-End Closes
  • This is often a pain point in accounting, but with the right AI-driven solutions, we can shorten closing times and minimize errors. That means results are more timely, and CFOs and CEOs can act on updated information sooner.

Areas Where AI Still Needs Work

  1. Nuanced Decision Making
  • Complex tax scenarios, ethical considerations, and high-stakes compliance all benefit from a human-in-the-loop approach.
  1.   Unstructured Data
  • If data is scattered or inconsistently formatted, even the best AI systems can struggle.
  1.   Rapidly Changing Regulations
  • Tax codes and accounting standards evolve. AI models must be frequently updated, and that still requires expert oversight to ensure accuracy.

Our Partnership with Basis AI: Automating the Month-End Close

One of the ways Wiss is pushing boundaries is through our partnership with Basis AI—a specialized platform that automates key steps in the month-end close. Here’s what that looks like:

  • Streamlined Processes: From reconciling accounts to categorizing expenses, the software handles mundane tasks faster and more accurately.
  • Early Exception Alerts: AI flags unusual transactions as they happen, letting our team address issues before they become bigger problems.
  • Value-Added Advisory: Because our professionals spend less time on manual data entry, they can focus on delivering high-level strategic advice to clients.

We see this partnership as a blueprint for how AI and human expertise can work in tandem—allowing us to provide superior service while embracing the latest technology.

The Future of AI in Accounting

I’m optimistic that as AI evolves, it will continue to redefine what’s possible in our industry. We’ll see: 

  1. Advanced Predictive Analytics: AI offers even deeper insights into cash flow and market risks. 
  2. Smarter Integration: Seamless links between AI tools and other business systems, creating a unified source of truth for financial data.
  3. Greater Advisory Focus: With routine tasks automated, accountants can dedicate more time to strategic planning and value-add services that directly impact clients’ success.

At Wiss, we’re proud to be at the forefront of this transformation—constantly refining our processes, partnering with innovative tech companies like Basis AI, and investing in our people. By balancing realistic expectations with a genuine enthusiasm for what’s next, we aim to shape a future where AI and accounting professionals work together to deliver unparalleled insights and results.

Final Thoughts

From invoice processing to month-end closing, AI is genuinely redefining accounting—not by replacing talent but by augmenting it. The path forward isn’t about blindly adopting shiny tools; it’s about thoughtful integration, robust training, and a relentless focus on delivering greater value to clients. At Wiss, we’re committed to leading the charge—empowering our team with cutting-edge technology while staying true to the personal, high-touch service that has defined our firm for decades.

If you’re ready to elevate your accounting processes with AI-driven solutions, Wiss is here to help. Offering cutting-edge tools and expert guidance, Wiss empowers businesses to achieve greater efficiency, unparalleled accuracy, and actionable strategic insights. Explore Wiss’ innovative offerings and take the first step toward transforming your accounting operations for the future. Contact us now to get started.

FAQs on AI in Accounting

Can AI reduce audit costs?

Yes, by automating document matching and reconciliation, AI can reduce prep time for audits by over 50%.

Is AI only useful for large companies?

Not at all. Many small to mid-size firms benefit from tools like Xero, QuickBooks, or outsourced AI-enabled services like those offered by Wiss.

Will AI handle taxes soon?

AI can assist with calculations, but tax strategy and compliance still require a human expert.

Family Office Services for Real Estate Families: A Comprehensive Wealth Solution

Posted on by Michelle Antico

Family-owned real estate companies often excel at managing their property portfolios but may overlook the accounting and tax complexities tied to other areas of their wealth. Many of these organizations hold significant investments outside of real estate yet do not put the same level of resources or strategic planning into this portion of their financial lives. This oversight can lead to missed opportunities for greater financial efficiency and growth. It’s here where family office services for real estate families make a difference.

Wiss Family Office, an affiliate of Wiss & Company, LLP (“Wiss”), offers tailored family office services for real estate families, providing seamless support for high-net-worth families. Acting as an all-encompassing “Management Company,” Wiss Family Office ensures that both real estate and non-real estate investments receive the attention they deserve.

Through our integrated services, real estate families benefit from expertise across multiple areas, including:

  • Estate Planning – From complex wills to trusts, we ensure your wealth is preserved and transferred efficiently.
  • Investing Strategies – Supporting families in balancing risk and growth with well-rounded portfolios.
  • Bill Paying – Simplifying the day-to-day management of personal and business finances.
  • Governance and Trust Operations – Helping to establish frameworks that promote transparency and cohesion across generations.

With Wiss Family Office, your family gains the expertise and strategic insight needed to reduce financial stress and enhance the management of multi-faceted wealth.

The Value of Specialized Family Office Services

Transitioning from Wiss to Wiss Family Office is seamless, as our teams bring years of institutional knowledge about real estate families and their unique challenges. Unlike external wealth advisors, who may lack a deep understanding of complex tax and financial structures, we integrate every aspect of your wealth management plan. This ensures complete alignment between your real estate holdings and other areas of financial life.

For instance, strategic tax planning—such as harvesting losses within a non-real estate investment portfolio—can offset the tax burden when selling a property. Our family office services for real estate families go beyond surface-level solutions by addressing the intricate connections between personal wealth, taxes, and real estate income.

Why Choose Wiss Family Office? 

Our expertise helps real estate families simplify their financial lives. Instead of hiring an in-house team or managing multiple third-party advisors, families can rely on our specialized services to handle a comprehensive array of functions. Key benefits include:

  • Tax and Financial Planning Integration – Coordinating personal taxes, real estate income, and investments ensures no stone is left unturned.
  • Estate Planning Excellence – By working with us, families secure their legacy through robust estate plan reviews and strategies for efficient intergenerational wealth transfers.
  • Cost-Effective Solutions – Families eliminate the need to develop their own family office infrastructure, saving not only costs but also valuable time.

Our services are designed to enhance efficiency, reduce complexity, and provide peace of mind for families navigating a mix of real estate-driven and diversified wealth.

Comprehensive Services Tailored for Real Estate Families

Beyond the core services provided, Wiss Family Office specializes in additional areas critical to high-net-worth individuals and families. These include:

  • Life Insurance Planning – Ensuring adequate coverage aligned with your family’s financial goals.
  • Tax Planning – Minimizing liabilities while aligning with growth objectives.
  • Financial Budgeting – Consolidating all income streams and expenditures into actionable plans. 

By leveraging family office services for real estate families, you streamline operations while avoiding the hassle of coordinating multiple advisors or internal hires.

Experience Seamless Integration

Collaboration is at the heart of our success. Wiss Family Office works closely with existing advisors to provide a truly integrated wealth management experience. Our deep understanding of tax implications, investment opportunities, and property management equips families with a roadmap for smoother financial decision-making.

Whether you’re planning your next property sale or navigating complex family governance, Wiss Family Office ensures your non-real estate wealth is no longer an afterthought. With everything under one roof, you gain the ability to focus on what truly matters—growing and protecting your legacy.

Make the Shift to Better Wealth Management

If you’re a family navigating the complexities of real estate and are considering adding a “Management Company” into your toolkit, Wiss Family Office is your ideal partner. With our expertise in family office services for real estate families, we bring structure, clarity, and peace of mind to your financial life.

Contact us today to learn how we can help elevate your family’s financial management, providing thoughtful guidance for your real estate portfolio and beyond. Start redefining the way you manage wealth with Wiss Family Office.

 

​​Wiss & Company, LLP (“Wiss & Co.”) and/or certain of Wiss & Co.’s subsidiaries, Wiss & Co., LLC and Wiss Enterprise Group, LLC provide accounting services to clients. Investment advisory services are offered through Wiss Private Client Advisors, LLC, doing business as Wiss Family Office(“WPCA”), an SEC registered investment advisor. Additional information and disclosures on WPCA is available via WPCA’s Form ADV Part 2A, which is available upon request or at www.advisorinfo.sec.gov. Insurance advice and sales are provided through Wiss Private Client Group, LLC (“WPCG”). Wiss & Co., WPCA, and WPCG are affiliated through common control and ownership. Each firm is regulated by the professional and/or regulatory organizations to which it belongs and must comply with the rules of those organizations. Services offered by each entity are separate and compensation is paid to the affiliate with which the clients contracts. These compensation arrangements present a conflict of interest because we have a financial incentive to recommend the services of our affiliates. You are not obligated, contractually or otherwise, to use the services of any affiliate we recommend.

Trump’s 2025 Tax Plan Unveiled: Key Reforms, and What It Means for You

Posted on by Michelle Antico

On February 6, 2025, President Donald Trump convened a marathon session with House Republicans at the White House, focusing on ambitious tax reforms, a pivotal component of his administration’s economic agenda. The nearly five-hour discussion brought together key GOP lawmakers to hammer out differences over a sweeping multitrillion-dollar initiative to cut taxes, reduce government spending, and reshape federal economic policies.

Key Points Addressed in the Meeting

The discussions centered around President Trump’s 2025 tax plan priorities, several of which were hallmarks of his campaign promises. According to White House Press Secretary Karoline Leavitt, Trump’s 2025 tax plan included:

  1. Eliminating Taxes on Tips, Social Security Benefits, and Overtime Pay: These cuts target workers in industries like hospitality and retail, aiming to reduce their tax burden and boost take-home pay.
  2. Renewing the 2017 Tax Cuts: These were set to expire, and Trump pushed for their extension to maintain lower rates for individuals and corporations.
  3. Adjusting the Cap on State and Local Tax (SALT) Deductions: This move could relieve middle-income taxpayers, particularly in high-tax states, potentially restoring some deduction benefits that were curbed in 2017.
  4. Closing Tax Loopholes: Notable proposals involved eliminating tax breaks for professional sports team owners and repealing the carried interest loophole, targeting wealthy financiers and corporations.
  5. Encouraging Domestic Manufacturing: Trump proposed tax cuts for U.S.-made products to bolster domestic industries and counter foreign competition.

Beyond these points, broader GOP objectives were woven into the conversation. House Republicans debated budgetary offsets to fund these tax reforms and achieve deeper cuts to federal spending, ranging from health care and food assistance programs to green energy initiatives.

Implications Trump’s 2025 Tax Plan for Everyday Individuals and Businesses

Trump’s 2025 tax plan could have long-lasting effects on families and businesses nationwide. For small businesses, lower operational costs due to domestic manufacturing incentives could translate into job growth and investment opportunities. Conversely, middle-class Americans should benefit from reduced payroll deductions, particularly those in service-based jobs.

Looking Ahead

With a self-imposed goal of passing tax legislation by April to kickstart reconciliation, whether Trump’s 2025 tax plan materializes into law will remain to be seen.

Ultimately, the outcomes of these discussions will ripple beyond Washington, shaping the financial well-being of small businesses, middle-class families, and industries across America.

For more information, contact our experts today.

The Strategic Benefits of Outsourced Accounting

Posted on by Michelle Antico

Outsourced accounting has emerged as a strategic solution for companies looking to enhance efficiency, cut costs, and stay competitive in the evolving business operations landscape. With the financial landscape becoming more complex and technological advancements rapid, it’s important to address the common concerns facing today’s accounting teams. By focusing on these issues—staff shortages, the pressure to keep up with technology, and the scenarios where outsourcing proves most beneficial—businesses can better understand the benefits of outsourced accounting and how it fits into their overall strategy.

In this article, we’ll explore three key benefits of outsourcing accounting services and how it can fit into your company’s strategy.

1. Addressing Accounting Staff Shortages

According to BDO’s 2024 CFO Outlook Survey, 36% of CFO respondents consider the current talent shortage a pervasive risk to their business. The accounting industry has faced a talent gap for several years, which has increased due to the aging workforce and fewer graduates entering the profession. Companies struggle with high turnover rates and the costs of recruiting, training, and maintaining skilled accounting staff. 

Outsourcing offers a strategic solution by providing access to experienced accounting professionals without the need for constant recruitment. Outsourced teams bring specialized knowledge and can scale services as needed, reducing the burden on in-house staff. By outsourcing some or all of a company’s accounting functions, companies can focus their internal resources on high-value strategic activities.

2. Overcoming The Digital Transformation Challenge

The accounting industry is undergoing a digital transformation, with cloud-based software, AI-powered analytics, and automation tools driving significant changes. However, many accounting teams find it difficult to keep up with technological advancements. Integrating new systems, training staff, and ensuring compliance with ever-changing regulations require considerable resources.

Outsourced accounting firms often have cutting-edge technology and the expertise to manage it effectively. By leveraging the latest tools, these providers can improve the accuracy and efficiency of financial processes, from entering transactions to financial reporting. Additionally, outsourcing reduces the burden on in-house teams to stay updated with every technological development, allowing them to focus on strategic insights.

3. Scenarios Where Accounting Outsourcing Delivers Strategic Value

While the benefits of outsourced accounting is not a one-size-fits-all solution, there are several scenarios where it can deliver substantial strategic benefits:

  1. Startups and Small Businesses: These companies often need more resources to build a full-fledged accounting department. Outsourcing provides access to professional expertise without the overhead costs, allowing small businesses to scale their operations quickly. 
  1. Mature Companies: Rapidly growing businesses often outpace their internal resources. Outsourcing provides the flexibility to manage increased financial complexity without the delays associated with hiring and onboarding new staff. 
  1. Companies Facing business transition or exit: By leveraging expert outsourced services, businesses can ensure accurate financial reporting, maintain regulatory compliance, and enhance transparency-key factors that potential buyers or investors value. Outsourcing also allows leadership to focus on core business operations and growth strategies during a transition. Having an experienced outsourced accounting team that brings specialized knowledge and tools that can streamline processes, identify inefficiencies, and present financials in a way that maximizes business valuation and facilitates a smoother, more confident exit.  

Conclusion

In today’s fast-paced business environment, the benefits of outsourced accounting are more than just a cost-saving measure; it’s a strategic tool that addresses key challenges modern accounting departments face. Whether dealing with staffing shortages, staying ahead of technological advancements, or managing growth, outsourcing allows businesses to optimize their operations and focus on strategic objectives. By aligning outsourced accounting strategies with business goals, companies can enhance their financial management capabilities while remaining agile in an increasingly competitive marketplace.

For more information, contact our experts today.

Basics of Gift Splitting for Married Couples

Posted on by Michelle Antico

Understanding and utilizing gift splitting for married couples can lead to significant tax savings when it comes to estate planning. However, it’s a nuanced strategy that requires careful consideration. This guide breaks down the basics of gift splitting, its benefits, and key factors married couples should consider before making this election. 

What is Gift Splitting? 

Gift splitting is a tax strategy that allows married couples to collectively allocate their annual gift tax exclusion and lifetime exemption for gifts made to a third party, even if the gift is made entirely by one spouse. Gift splitting for married couples enables them to double the amount they can gift tax-free. 

For example, in 2025, the annual gift tax exclusion allows individuals to gift up to $19,000 per recipient without triggering gift taxes. Through gift splitting, a married couple can combine their exclusions and gift up to $38,000 to the same recipient tax-free. The lifetime gift and estate tax exemption for 2025 has increased to $13,990,000 per individual. A married couple electing gift splitting can give away $27,980,000 (if no prior gifts were made) during 2025 without incurring gift tax.

How Does Gift Splitting Work? 

To qualify for gift splitting, both spouses must meet the following criteria:

Marital Status: You must be legally married to each other at the time the gift is made, and each spouse must be a US citizen or resident during the year in which the gift is made. 

Consent: Both spouses must agree to split the gift by filing Form 709. New Form 709 for 2024 requires, among other things, that the donor spouse must attach a separate “Notice of Consent” to the donor’s return. The consenting spouse must sign and date the Notice of Consent, which includes a statement that the consenting spouse “is electing to treat all gifts made to third parties as having been made on behalf of each spouse.”

Filing Requirement: A gift tax return (Form 709) must be filed to elect the gift splitting, even if no tax is due. 

Spouse Cannot Be Done with limited exceptions: A gift made to your spouse or a trust in which the spouse is a discretionary beneficiary cannot be split. This includes a gift that the non-donor spouse has a general power of appointment over. 

Non-Community Property: If the gift is from community property, each spouse is already considered to have made half of the gift, so gift splitting for married couples may not be necessary. 

Important Points to Remember:

  • Filing Requirement: Both spouses must agree to split all eligible gifts for the year and cannot pick which gifts to split and which to not split. 
  • Lifetime Exemption: Gift splitting reduces the lifetime exemption for both spouses if the total value of gifts exceeds the annual exclusion. 
  • Irrevocable Election: Once the election is made, it applies to all gifts within that year and cannot be undone, so strategic planning is critical. 

Benefits of Gift Splitting 

Utilizing gift splitting can offer a range of benefits:

  1. Tax Savings: Couples reduce the likelihood of triggering gift taxes by doubling the annual exclusion amount. 
  1. Efficient Transfer of Wealth: This strategy allows couples to transfer more substantial assets to their loved ones or trusts early, helping avoid potential estate tax implications later. 
  1. Flexibility in Large Gifts: Couples can transfer significant sums within their lifetime exemptions without taking on additional tax burdens. 

What to Consider When Gift Splitting 

While gift splitting can be advantageous, there are essential factors and potential pitfalls to consider:

Changes in the Lifetime Exemption  

The federal gift and estate tax exemption recently increased to $13,990,000 per person (as of 2025); however, the exemption  is set to be automatically halved on January 1, 2026, unless new legislation is passed. By electing gift splitting, both spouses use portions of their lifetime exemptions equally, which may not always be efficient. For example, using gift splitting for amounts under one spouse’s exemption could waste the other spouse’s unused exemption. 

Example 1 – Lifetime Exemption Remains Untouched:

Jack gifts $38,000 to his child in 2025 when the annual exclusion is $19,000. By electing gift splitting, Jack and his spouse, Jill, treat the gift as $19,000 each, staying within their yearly exclusions. Their lifetime exemptions remain unaffected. 

Example 2 – Reduction of Lifetime Exemption with Gift Splitting: 

Linda transfers $14,000,000 in assets to her child in 2025 when the lifetime exemption is $13,990,000. If Linda and her spouse, Tom, elect to gift split, they each will record $6,981,000 as taxable gifts (after considering the $19,000 annual exclusion). This could lead to higher gift or estate taxes if the exemption is reduced in 2026 to one-half or $7,000,000. For example, if the 2026 exemption is halved, both spouses would have nearly zero exemption remaining in 2026: ($7,000,000 – $6,981,000) $19,000. However, if Linda and her spouse did not gift split in 2025, Linda would have used approximately her entire exemption in 2025 of $13,990,000 (gift of $14,000,000 – $19,000 annual exclusion = $13,981,000), while her spouse’s exemption of approximately $7,000,000 is preserved. Further, if the lifetime exemption is not reduced in half, her spouse’s exemption of $14,000,000 is preserved.

Divorce Considerations   

  • The implications can become complicated if a couple divorces after making gift-splitting elections. Any future audits or reviews of past gift tax returns may require cooperation from both spouses.

Read more: Balancing Wealth and Trust: Navigating Financial Transparency in Marriage

Alternative Strategy to Gift Splitting 

  • Interspousal Gifts: Transfers between spouses who are US citizens or residents are unlimited and tax-free, allowing wealthier spouses to provide assets to their partner to make individual gifts without triggering gift taxes for married couples. This would preclude the need for gift splitting and could utilize the less wealthy spouse’s unused lifetime exemption. However, there is a risk to the unwary that these transfers can be re-characterized as a “step transaction” by the IRS. The theory behind the step transaction is that if one spouse transfers assets to the other spouse, who immediately gifts those assets to a third party, the IRS may treat it as a single indirect gift from the first spouse, potentially triggering taxes.

Final Thoughts 

Gift splitting is a powerful tool for married couples seeking to transfer significant wealth tax-efficiently. However, its irrevocable nature and potential for unintended consequences make careful planning a necessity. 

Before making any elections, consult a financial professional or estate planning attorney to ensure the strategy aligns with your broader financial goals and estate plan. By taking proactive steps now, couples can use gift splitting to their advantage while safeguarding family wealth for generations to come. 

Contact Wiss if you’re looking for expert guidance tailored to your unique financial situation. Our experienced team is here to help you navigate complex planning strategies and confidently achieve your goals. Contact us today!

2025 Chinese New Year: Welcoming the Year of the Snake with Wisdom and Renewal

Posted on by Michelle Antico

Chinese New Year, the Spring Festival or Lunar New Year, is the most significant holiday celebrated throughout Asia and among Asian communities worldwide. This holiday symbolizes fresh beginnings, unity, and goodwill. People welcome this festive season, hoping to usher in good fortunes, including wealth, wisdom, health, and happiness. In 2025, the Chinese New Year is on Wednesday, January 29th.

In China, the twelve zodiac animals that rotate yearly are the rat, ox, tiger, rabbit, dragon, snake, horse, sheep, monkey, rooster, dog, and pig, each bringing unique characteristics to define the year ahead. 2025 marks the Year of the Snake, an animal revered for intelligence, elegance, and resourcefulness. Snakes are seen as symbols of transformation and intuition, making 2025 a year anticipated to inspire personal growth, clarity, and renewal.

The History

Around 3,500 years ago, during the Shang Dynasty (1600-1046 BC), people held sacrificial ceremonies to honor gods and ancestors at the beginning or end of each year. This practice evolved during the Zhou Dynasty (1046-256 BC) when it became more common to worship nature for a good harvest at the turn of the year. The date for Chinese New Year was established and fixed during the Han Dynasty (202 BC – 220 AD). Over time, celebration customs and entertaining activities emerged, including getting together with family, setting off firecrackers, watching dragon and lion dances, and lighting lanterns. In modern times, this festivity has transformed from a religious observance into a social celebration. In 1949, Chinese New Year was officially designated as a national holiday in China.

Chinese Mythology

A legendary creature called “Nian” would attack villages on the last day of the year. To protect themselves, people would hide in their homes and prepare a feast to honor their ancestors and the gods, praying for safety and a good harvest. It was also believed that the color red and the noise of fireworks would scare away “Nian.”

The Traditions

Different regions have unique traditions, many of which have been observed for thousands of years. However, one familiar ritual across all locations is returning home to be with family, and a family reunion dinner is essential for this holiday. Additionally, people create and hang couplets featuring auspicious words and decorate their homes with the “fu” character, which represents happiness and blessing in Chinese. When turned upside down, it symbolizes the arrival of good luck. Gifting red envelopes containing money is also a traditional practice during Chinese New Year. These red envelopes are typically given to children by older family members to help them prepare for a safe and prosperous new year. Other customs enjoyed in various regions include making dumplings from scratch, attending temple fairs, and watching lantern shows.

Memories of My Childhood

In the days leading up to this joyous holiday, my family would decorate our doors with red good-luck couplets (Chun Lian) and go shopping for gifts and delicious food to spread blessings and prosperity. I always looked forward to wearing new clothes, visiting my grandparent’s house to play with my cousins, and collecting red envelopes (Hong Bao) filled with lucky money from relatives on New Year’s Eve. Our tradition included playing mahjong and watching the New Year’s Gala (Chun Wan) on TV after enjoying a ten-course dinner (Nian Ye Fan). Staying up past midnight to watch the spectacular fireworks was our favorite moment of the celebration. Even though I am thousands of miles away from where I grew up, I continue to embrace the spirit of Chinese New Year and stay connected to my roots.

More Facts

What do you eat for Chinese New Year?

  • Dumplings—They are shaped like ancient Chinese gold ingots. In some regions, people believe that the more dumplings you eat, the more money you will make in the new year. Additionally, making dumplings brings family members together, as it requires a lot of involvement from everyone.
  • Fish—In Chinese, the pronunciation of the word “fish” is the same as that of the word “surplus.” Therefore, serving fish during a meal symbolizes having an abundance at the end of the year. Additionally, families often save leftovers to carry over to the next day as a way to wish for a prosperous new year filled with abundance.
  • Rice cake—People who eat rice cakes hope for better grades at school or higher salaries at work because “rice cake” sounds like “a high year” in Chinese.
  • Spring rolls—This appetizer is served at the table to celebrate the coming of spring. They resemble gold bars, symbolizing increased savings and earnings.
  • Longevity noodles—As the name implies, longevity noodles symbolize the hope for good health and a longer life. Their texture is smooth and even, reflecting the expectation of a peaceful year ahead.
  • Glutinous rice balls—Commonly served after a family reunion meal on special occasions, including the Spring Festival, Lantern Festival, and Winter Solstice Festival, these round balls symbolize completeness and togetherness.
  • Citrus fruits—Mandarin oranges and tangerines are appreciated during the Chinese New Year because their names translate to “success” and “luck.” Their round shape and golden color are popular symbols of fullness and wealth.
  • Eight-treasure rice—This traditional Chinese New Year treat includes eight primary ingredients: red dates, longan, winter melon, dried apricot, red bean paste, lily bulbs, lotus seeds, and goji berries. The number “eight” sounds similar to the word for “enrichment” in Chinese. Consuming eight-treasure rice symbolizes a collective wish for prosperity and improvement in the coming year.

How long is the Chinese New Year?

Typically, Chinese New Year is a sixteen-day celebration, starting from Chinese New Year’s Eve and ending with the Lantern Festival when there is a full moon.

Why does the holiday start at a different time each year?

The Lunar calendar is used to determine the date of the Chinese New Year. This calendar is based on the phases of the moon’s synodic cycles, which makes it different from the commonly used Gregorian (or Solar) calendar. Although the date changes yearly, the Chinese New Year usually falls between January 21st and February 20th after being converted from the Lunar to the Solar calendar.

Why is the color red significant? 

In Chinese culture, red is considered a symbol of joy, virtue, and sincerity. As a result, it is commonly used in holiday celebrations, especially during the Chinese New Year, when many garments and decorative items are adorned in red.

Why do people give red envelopes during Chinese New Year?

The custom of giving red envelopes originates from a tale about a mythical monster named “Sui,” who would come out at night to terrify children while they slept. One New Year’s Eve, a child was given coins to play with, and he decided to wrap the coins in red paper as a packet. When he fell asleep, the monster attempted to touch the child’s head but was frightened away by the red packet placed under his pillow. The legend quickly spread throughout the country, and the red envelopes became known as a protective charm against “Sui,” while the coins inside were referred to as “suppressing Sui money.” Since then, giving red envelopes has become an integral part of the New Year’s tradition, aimed at keeping children safe and bringing them good luck. 

What to Expect from Tax Policy Changes in Trump’s Second Term

Posted on by Michelle Antico

Donald Trump’s second inauguration marks another pivotal moment in U.S. politics, and tax policy changes to be a key focus. While sweeping tax policy changes won’t take effect immediately — unlike executive actions on issues like immigration or environmental policy — early discussions will likely shape the trajectory of his new term. What can we expect in this area, and how might it affect individuals and businesses?

Trump’s Promise on Tax Policy Changes

During his campaign, Trump hinted at several significant adjustments to the tax code. These included cutting tax rates for middle-class Americans, introducing new incentives for businesses, and even advocating for potential tax breaks to support domestic manufacturing. His rhetoric often complemented his broader economic strategy, which included imposing tariffs to protect American industries and reducing regulatory burdens on businesses. This makes it clear that Trump’s tax policies will likely aim to stimulate economic growth while aligning with his “America First” agenda. 

An early look at the priorities of the newly inaugurated administration suggests a strong focus on reducing corporate taxes. Trump has long maintained that a competitive corporate tax rate is essential for keeping American businesses thriving, particularly as they face the challenges of global industries and rising trade tensions. Individual taxpayers, however, may see relief too. Trump has floated the idea of expanding tax cuts for the middle class — potentially a continuation of the benefits introduced under his first term’s Tax Cuts and Jobs Act. 

Potential Impacts of Trump’s Tax Policy on Businesses 

For businesses, reduced taxation could lead to considerable benefits. Lower corporate tax rates and tax credits for manufacturing firms could drive reinvestment in U.S.-based production and jobs. Such policies complement increased tariffs on foreign goods, creating a more protectionist economic environment. However, these measures are not without controversy. Critics argue that while businesses may benefit in the short term, tariffs, and tax policies could push consumer prices higher. 

However, renewable energy and technology businesses are gearing up for uncertainty. For example, Trump’s skepticism toward clean energy subsidies indicates that the tax benefits associated with green industries might face cuts. This could redirect investment away from wind, solar, and electric vehicle manufacturing innovations. 

For Individual Taxpayers: Hope for Middle-Class Relief 

Middle-class Americans may find some optimism in Trump’s tax pledges. Building on the foundation of his first term, the administration could aim to simplify tax filing for individuals, expand deductions, or introduce further tax cuts targeted at the average worker. These measures would address economic concerns for millions of households and bolster Trump’s focus on working-class voters. This group has been key to his political base. 

Yet, the extent to which these tax policy changes will materialize remains a question of timing. Crafting tax legislation is a slow process, and any major overhauls will need to undergo months of debate and compromise in Congress. With a divided legislature likely, the outcome is far from certain. Trump’s ability to shepherd his ambitious tax plans through Congress will be a true test of his political capital. 

Combining Taxes with Economic Strategy 

Trump’s tax policy is expected to complement broader economic shifts — such as tariffs, trade reforms, and deregulation. By lowering taxes on corporations and individuals, Trump’s economic team likely hopes to offset potential downsides of increased tariffs, like higher costs for goods. The administration may also use tax incentives to encourage behavior that aligns with its geopolitical goals, such as favoring businesses that relocate supply chains from China to the United States. 

For example, complementing tariffs with tax breaks for manufacturers could create a strong push for businesses to reinvest domestically. At the same time, these policies could have ripple effects, such as reshaping consumer behavior or fueling inflationary pressures. 

The Road Ahead 

The complexity of tax reform means that substantial changes will take time. Due to the intricacies of legislative negotiation, it’s unlikely we’ll see a major tax overhaul in the first few months of Trump’s second term. However, the administration is expected to signal its priorities in the coming weeks, and early proposals will shed light on who stands to benefit most — businesses, individuals, or both. 

The key takeaway is that Trump’s tax policy changes will aim to stimulate economic growth while reinforcing his broader “America First” platform. Whether or not Congress will cooperate with these plans remains to be seen, but the implications for the economy and American taxpayers could be profound. 

Trump’s tax reform efforts promise to leave a lasting mark. For individuals, the possibility of lower taxes is a welcome incentive, while businesses may find expanded opportunities for profitability through reduced regulations and targeted tax breaks. However, the balance between immediate relief and longer-term economic consequences will be a central concern for policymakers and the public alike. As the administration moves forward, the months ahead will reveal how Trump intends to shape the nation’s financial landscape.

For more information, contact our experts today.