taxes Archives - Killingsworth Spencer, LLC

“Why Did I Not Get the Full $40,000 SALT Deduction?”

kwscpa2026-06-30T15:35:38+00:00

When the One Big Beautiful Bill Act was signed into law on July 4th, 2025, one of its most talked about tax provisions was the increase in the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. Greetings from Killingsworth Spencer, Lynn Spencer here. As 2025 progressed, some taxpayers adjusted their withholding and estimated tax payments on the expectation they would be entitled to the full $40,000 deduction. However, when tax season arrived, many discovered that qualifying for the full amount was not as straightforward. Income-based phase-outs reduce the allowable deduction for many higher income households, leaving tax balances [...]

“Why Did I Not Get the Full $40,000 SALT Deduction?”kwscpa2026-06-30T15:35:38+00:00

The Augusta Rule: How Homeowners Can Earn Tax-Free Rental Income for the 2026 FIFA® Games

kwscpa2026-06-03T22:38:45+00:00

Major events can create unique opportunities for homeowners. Here’s a valuable tax strategy, commonly known as the Augusta rule, that can help generate tax-free income. A homeowner may rent their primary residence for up to 14 days each year without paying federal income taxes on the earnings. Rent it out for 15 days or longer and every dollar earned is taxable from the first day forward. Atlanta is a host city for the 2026 FIFA® World Cup. This could be a wonderful opportunity for a homeowner to rent to a business or an individual, for tax-free income. In fact, this is [...]

The Augusta Rule: How Homeowners Can Earn Tax-Free Rental Income for the 2026 FIFA® Gameskwscpa2026-06-03T22:38:45+00:00

The Hidden 2026 Tax Change Affecting Workplace Coffee & Snacks

kwscpa2026-05-28T19:50:32+00:00

There is a quiet tax law change taking effect in 2026 that could increase costs for many businesses providing coffee, snacks, and other small refreshments to employees. For years, these items have been treated as de minimis fringe benefits, meaning employees are not taxed on them, and employers were generally allowed a deduction. But beginning January 1, 2026, the tax code stemming from the Tax Cuts and Jobs Act of 2017 eliminates the employer deduction, while the benefit remains tax-free for employees. From a practical standpoint, this rule may influence how businesses approach workplace amenities. Many employers offer coffee and snacks [...]

The Hidden 2026 Tax Change Affecting Workplace Coffee & Snackskwscpa2026-05-28T19:50:32+00:00

IRS Announces a One-Time Settlement Offer for Conservation Easements

kwscpa2026-05-28T15:09:04+00:00

The IRS recently announced a time-limited settlement initiative offering eligible taxpayers involved in syndicated conservation easement disputes an opportunity to resolve pending matters on streamlined terms and avoid continued litigation. With more than 1,000 conservation easement cases reportedly pending in the U.S. Tax Court—and a significant number tied to Georgia-based entities, properties, or promoters—this initiative may be particularly relevant to Georgia taxpayers and advisors. Taxpayers considering participation should carefully review the eligibility requirements and deadlines outlined in the attached IRS announcement and consult with their tax advisors regarding the potential implications of the program. Killingsworth Spencer can also refer taxpayers to experienced tax counsel [...]

IRS Announces a One-Time Settlement Offer for Conservation Easementskwscpa2026-05-28T15:09:04+00:00

When A Roth IRA Conversions May Cost More than it Saves

kwscpa2026-05-18T17:19:37+00:00

Roth IRA conversions may be less beneficial under OBBBA, and careful planning is essential before converting previously untaxed retirement funds. Below are several common Roth IRA conversion tax traps that can cost taxpayers more than they save: If a taxpayer needs to access the converted Roth-IRA funds within 5 years from a previously untaxed retirement account, such as a 401(k), 403(b), IRA, etc., penalties and taxes may apply. Taxpayers considering a Roth conversion should ideally have non-retirement funds available to pay the related income taxes. Using retirement assets to pay the taxes reduces the amount that can continue to grow tax-free [...]

When A Roth IRA Conversions May Cost More than it Saveskwscpa2026-05-18T17:19:37+00:00

New Tax Rules for Inherited IRAs What Beneficiaries Should Know about RMDs and the 10-year Rule

kwscpa2026-05-05T16:15:14+00:00

As of December 31, 2025, most non-spouse beneficiaries inheriting an IRA account from an individual who died in 2020 or later must fully distribute the account by the end of the tenth year following the original owner’s death. This rule applies to both traditional and Roth IRAs. However, Roth IRA withdrawals are generally tax-free provided the account has been open for at least five years. If the original owner had already begun taking required minimum distributions (RMDs) before death, beneficiaries must take distributions in years 1-9 and fully withdraw the remaining balance in year 10. If the original owner died before [...]

New Tax Rules for Inherited IRAs What Beneficiaries Should Know about RMDs and the 10-year Rulekwscpa2026-05-05T16:15:14+00:00

Tax Bracket Creep is Quietly Raising Tax Bills in Fulton and Cobb Counties

kwscpa2026-04-06T18:41:31+00:00

This year, Killingsworth Spencer is seeing subtle “tax bracket creep.” Tax bracket creep occurs when inflation causes wages to increase at a faster rate than tax bracket limits adjust to reflect economic shifts. Here are a few ways taxpayers can reduce their tax bill and increase their purchasing power this year and next. If household income is near a cutoff, these methods can lower AGI, keep one income in a lower tax bracket, and preserve credits. Contribute to retirement accounts: Contributions made to 401(k) and IRA accounts come out of an employee’s salary and are made using pre-tax dollars, thereby [...]

Tax Bracket Creep is Quietly Raising Tax Bills in Fulton and Cobb Countieskwscpa2026-04-06T18:41:31+00:00

Child Tax Credit Changes OBBBA

kwscpa2026-03-26T19:54:09+00:00

The One Big Beautiful Bill Act introduced several updates to the Child Tax Credit and related tax provisions that may affect how you file in the coming year. Here’s a brief overview of what families with dependents should know moving forward. Child Tax Credit - for 2025 has risen to $2,200 (up from previous $2,000) per qualifying child under age 17. This credit amount will be adjusted annually for inflation. Additionally, up to $1,700 of the credit is refundable, meaning eligible families may receive this portion as a refund even if they have little or no tax liability. Both the taxpayer [...]

Child Tax Credit Changes OBBBAkwscpa2026-03-26T19:54:09+00:00

Turn 100% Bonus Depreciation into a Winning Tax Strategy for Your Small Business

kwscpa2026-03-03T15:40:58+00:00

"Should I wait to buy new equipment?" Why would you? Greetings from Killingsworth Spencer in Roswell. The One Big Beautiful Bill Act (OBBBA) was signed into law July 4th, 2025, and brought back 100% bonus depreciation; this time, it's permanent. If you bought qualifying business property last year, you may be able to deduct the entire cost on your 2025 tax return instead of spreading it out over three to twenty years. The same applies for any equipment purchased in 2026 and beyond. What Actually Changed The Tax Cuts and Jobs Act (TCJA) back in December 2017 introduced 100% bonus depreciation [...]

Turn 100% Bonus Depreciation into a Winning Tax Strategy for Your Small Businesskwscpa2026-03-03T15:40:58+00:00

Can I Take the $40,000 SALT Deduction?

kwscpa2026-02-04T22:03:50+00:00

The SALT deduction cap jumped from $10,000 to $40,000 in 2025. If you own a home and pay more than $10,000 in property taxes and state income taxes combined, you could save thousands on your federal tax return this year. This is a temporary win through 2029, so let's make sure you're taking full advantage of it. Greetings, Lynn Spencer here. Let me break down this good news and why it likely matters for your wallet. What Just Happened with SALT? SALT stands for "State and Local Taxes", basically, the amount you can deduct on your federal tax return for state [...]

Can I Take the $40,000 SALT Deduction?kwscpa2026-02-04T22:03:50+00:00