2025 Tax Facts on Individuals & Small Business

Tax Facts on Individuals & Small Business is your complete source for tax information that relates to the types of tax implications most often faced by individual taxpayers and business owners. With thousands of easy-to-use Q&As that cover the most critical topics, Tax Facts helps advisers of all kinds understand the tax implications of the recommendations that they make for their clients. Insurance and employee benefits are complicated tools that each carry their own set of tax issues, and advisers cannot possibly make the thorough and complete assessments that clients depend on without understanding this ever-changing area.

This book features:

• Easy-to-read Q&As that comprehensively cover both individual tax issues and also tax issues that are most likely to be faced by small business owners
• Practical advice for any professional, including CPAs, attorneys, and estate and financial planners
• Detailed explanations of the various types of investment products and techniques that are most commonly used by individuals and businesses
• Practice Points give concise advice on how to handle real-world issues
• The right tax information to help avoid problems before they become costly mistakes, as well as correct problems when they do occur

New in the 2025 Edition:

• Notice of the IRS warnings about false or overstated employee retention credits and an overview of the withdrawal process for taxpayers who filed employee retention tax credit claims that they now believe to be erroneous
• Explanation of the IRS’s voluntary disclosure program to allow employers with erroneous employee retention credit claims to avoid potential penalties, interest and civil litigation
• An expanded discussion of how the child and dependent care tax credit provides a tax credit to offset the cost of qualifying work-related dependent care expenses
• Update on the Department of Labor’s standard for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act under the six-factor "economic reality" test
• Analysis of the new rule where PayPal, Venmo and other third-party payment networks must report a taxpayer’s transactions in excess of $5,000 per year to the IRS
• Note on how the IRS issued an FAQ on the tax treatment of work-life referral services as de minimis fringe benefits
• Update of the IRS’s interim guidance on QSLPs via Notice 2024-63, where the IRS clarified that the QSLP must be for the employee, the employee's spouse or dependents
• Discussion of the U.S. Supreme Court’s ruling in Connelly v. United States, which changes the expected estate tax result when companies use life insurance to fund redemption style agreements.
• Update on the Northern District of Alabama’s ruling that the Corporate Transparency Act (CTA) that created the new FinCEN BOI reporting requirements was unconstitutional

Key Topics covered:

• Capital gains and losses
• Tax issues related to business income
• Passive and active business income
• Estate planning issues for small business owners
• Bad debt and worthless securities
• Small business valuation issues
• Buy-sell agreements
• Casualty and theft losses for individuals and businesses
• Nontaxable exchanges