Author: Complete Controller

A recession is less than a 10% decrease in a country’s Gross Domestic Product (GDP). The decrease must last more than a consecutive quarter of a year. GDP is the sum of private and public spending on goods, services, labor, and investment.

The terms recession and depression are often confused. It can be said that a recession is generally not as severe as a depression, and a recession tends to resolve quicker than a depression.

Only some people agree on a specific definition for determining an economic recession. Still, most can point to several factors that can cause a recession:

1. Either a significant fall in prices or a substantial increase in prices may occur
2. A decline indicates that people can spend less money, so the GDP is reduced
3. An increase in price can also reduce private and public spending and, therefore, lower GDP

In a way, it is natural that countries experience mild recessions. It is a built-in or endogenous factor of society. Spending and consumption will increase or decrease, as will prices. However, another factor is needed in addition to these occasional drops in expenses to create a recession. Often, something changes rapidly and causes sharp increases or decreases in prices.

A recent recession in early 2000 was due to the sudden decline in dot.com industry activity. In the 1990s, the telecommunications industry made vast amounts of money. It began to exceed expectations regarding future demand. Suddenly, the previously sought-after demand was much smaller than expected, leading to massive layoffs, decreased production, and therefore decreased expenses.

The dot.com fall is considered a “shock” in GDP, which can greatly decrease if the product or industry falls in production. Although the recession resulting from the dot.com bust was considered during 2003, it has far-reaching consequences that are still felt.

Those who initially made excessive amounts of money can still find themselves without work. Telecommunications companies significantly reduced jobs, and employment rates in the industry have never been fully restored. Telecommunications companies also reduced costs by outsourcing production to foreign countries. While this outsourcing has allowed some companies to continue operations, it left many with training for specific jobs they could no longer utilize.

However, other industries have expanded since then and raised GDP. So, the recession is deemed “over,” even though many still feel its effects on a personal level. Rating a recession as “over” does not necessarily account for positive economic changes for the individual.

For example, a recession is sometimes evaluated regarding the country’s unemployment rate. When this is the case, and people find work, the failure to assess changes in income can make the economy seem more productive than it is. A former telecommunications employee who now works at Wal-Mart may have a job. Still, this work is not equivalent to the previous work in compensation. Thus, the analysis of only one aspect of a recession should not be used to indicate economic recovery.

• Getting a job during a recession can be difficult.
• A fall in GDP for two consecutive quarters is a recession.
• Consumers are less likely to make superficial purchases during a recession.
• Consumer spending decreased during the recession.
• More people tend to stay at home instead of leaving to save money during a recession.
• The recession is sometimes evaluated regarding a country’s unemployment rate.

The core effects of the recession are;

• For two consecutive quarters, economies faced a decline in the actual gross product of the country.
• Real Gross National Product (GNP) decreases by 1.5%
• There is more than a 75% decrease in company vacancies for six or more months.
• Around a 6% increase in the level of unemployment occurred due to the recession.

The recession can also be beneficial as you can cure inflation by the recession. As the Federal Reserve does, you can overcome inflation without causing recession by slowing the economy with balance. It does this without using any financial policy.

Politicians are responsible for setting, managing, and controlling the country’s budget well. They strive to stimulate the country’s economy by reducing the social program’s taxes and overlooking the national budget deficit. In this way, American debt increased up to $10.5 trillion. It happened when the United States government didn’t spend on the Economic Stimulus Package of 2009. People call it the American Reinvestment and Recovery Act.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

How Do Inflation and the CPI Affect Us?

Rising prices and inflation

When the economy is in a growth cycle, the improvement of domestic economies leads to an increase in the consumption of goods and services, which translates into an increase in prices. The basic rule of economics says that the higher the demand, the higher the price.  

National monetary base 

When countries are not experiencing economic growth, governments make and issue money to pay their debt or deficit, which has increased the country’s monetary base. In these cases, more money is in circulation than the economy needs.

Consider if each of us were given a million dollars, our final position would be the same since the demand for goods and services would go up so much that prices would counter-balance the available money. It could cause typical household items to skyrocket; for example, a loaf of bread would be worth $1,000.

Interest rates

Inflation may also vary depending on the behavior of interest rates. If inflation rises because of a good economic situation, this is considered an overheated economy. The way to cool down the economy is to raise interest rates, which will reduce the number of loans granted. It will consequently reduce consumption so that prices will fall. In the same way, lower interest rates will favor economic growth and, therefore, inflation.  

Increased energy prices

The rise in energy prices also produces widespread inflation, as it is present in manufacturing or transporting almost all products. The most difficult thing for a government to maintain is a good rate of sustained economic growth and low inflation.

Measuring inflation

Many indexes measure the variation in the price of goods and services in an economy. These indexes include the Index of Prices of Investment Goods, the Wholesale Price Index, the Producer Price Index, and the Consumer Price Index. The Price Index is particularly interesting since it directly affects family economies.

 Consumer price index

The Consumer Price Index (CPI) measures the price variation of goods and services necessary for the daily life of households and families. In particular, the prices of a series of products called basic baskets are measured monthly. In that basket, products are excluded and included as the uses and customs of consumers vary. For example, 20 years ago, the price of a mobile telephone was not counted but is included in today’s basic basket.

How does the CPI affect us?

The importance of the CPI is that it measures the variation of our purchasing power. If prices rise, we can buy less goods and services with our income, so it is said that we lose purchasing power. We are poorer, even if we earn the same income.

Many companies and the State offer their employees or pensioners at the beginning of the year a salary increase in relation to what the CPI of the previous year has risen.

Many people mistakenly think they have a larger salary when the increase is equal to the CPI increase. However, they are maintaining their purchasing power because they can buy the same as the previous year. If the wage increase exceeds the CPI, we gain purchasing power. Similarly, if the wage increase is lower than the rise in the CPI, then there is a wage freeze and loss in purchasing power. 

Price increases and purchasing power

The price increase affects us if our salaries do not increase to accommodate them. Even so, as prices rise steadily and wage increases are made at the beginning of the year, to maintain our purchasing power, a low or moderate rate of inflation that does not cause the speed of price rises to cancel wage increases will be necessary. If not, we will permanently lose purchasing power.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Loans are a financial transaction by which a natural or legal person, usually a financial institution, grants a given amount of money to another in exchange for interest that will be paid together with the money granted, typically in monthly installments.

In exchange for the money obtained through the loan, the holder undertakes to return the amount within a certain period, together with the interest accrued and other expenses associated with the process. The specific conditions of the loan are detailed in the contract signed between the involved parties.

Loans and Credits

Although the concepts “loans” and “credits” are often used as if they are common in banks, financial institutions of credit, or newspapers, loans and credits are two different financing products. Their characteristics and differences are below to help determine which option to use:

Loans  

1. The entity transfers the money in its entirety that was requested to finance a specific project, such as funding a home renovation.
2. The repayment installments are fixed and monthly until the loan has been fully repaid.
3. Interest will be generated on the total amount granted.
4. The repayment is made to the lender and will not be available again.

Credits

1. The entity disposes a credit account with a certain amount of money according to the borrower profile, and it can be used in part or total for any purpose.
2. Repayment can vary depending on the amount of money used or has already been reimbursed.
3. Interest will only be generated on the money used, not on the total money available.
4. As money is reimbursed, the borrower will have that money available to use again.

Types of Loans and Credits 

Within the United States financial market, a variety of loans and credits are commercialized, from conventional bank loans to finance projects to innovative private fast loans designed to grant financing on the same day and with little paperwork. Below are all types of loans and credits accessible in the United States.

Personal Bank Loans

Personal loans offer relatively high amounts of money, from $3,000-$75,000. Its repayment period ranges between 12 months and ten years, depending on the amount requested, and funds are returned in monthly installments of the chosen amount. These types of loans are designed to finance large projects. Additionally, it is currently possible to find loans for ecological projects.

Quick Personal Loans

These are loans granted by non-banking entities and offer amounts of $100 up to $5,000 in less than 24 hours. These loans can be contracted online without changing banks or obtaining related products. These are some of its advantages and many reasons why these loans can be obtained quickly. Quick personal loans usually cost 3%-5% per month. The return period is between 3 months and three years, and the repayment is made in monthly installments.

P2P Loans 

P2P loans, also known as crowdlending, are loans for individuals managed and granted through crowdlending platforms or platforms from which company financing is granted. These platforms of collaborative loans put individuals or legal entities that need financing in contact with independent investors who want to lend them money to obtain a certain profitability.

The interest in these products may differ depending on each project’s credit rating. Therefore, the better the profile, the lower the assigned interest.

Mini Credits

Online mini-credits are the fastest product and have recently become one of the most popular products. With these credits, new clients can secure limits of $50-$300 or up to $1,000 for existing clients.

The application and grant process for mini-credits lasts only a few minutes. Repayment is made within 30 days as a single payment consisting of the money requested plus the 1.1% daily interest generated.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Investment properties give you an incredible multitude of tax benefits.

Despite having deductible expenditures, real estate investors enjoy tax benefits a lot. A self-employed person in the top tax bracket encounters around 60% income tax liability. The high-income tax rate for San Francisco citizens is about 67%, over two-thirds of their income. With these scores, you can’t move forward in life. It becomes more challenging when you spend 30% to 60% of your income on tax payments.

Let’s slash your tax bill by real estate investment to reduce your tax liability.

Real Estate Tax Reduction Strategies

Buy properties in a self-directed IRA

IRAs and Roth IRAs (Individual Retirement Accounts) are tax-deferred ways to invest for retirement. You can open your private and self-directed IRA. You can also use this account to invest in tax-free real estate. According to Transamerica, US citizens have an average retirement savings of only about $50,000.

It is not as easy as purchasing a proprietorship in a regular IRA. You need to hire a trusted company to direct the self-directed IRA. It will be responsible for building an IRA, and you will be accountable for depositing your funds. Also, you can make a lawful entity, such as a Limited Liability Company (LLC), to purchase private property for investment purposes. Financing the investment property rather than buying it in cash will be tiresome. With an IRA, you can reduce your real estate taxes by a non-financed portion. You will apply the conventional rules of the IRA, that is.

• Get your money back after the age of 59.5
• You will have to eliminate it by the age of 70.5

Integrate your interest by investing in real estate via a self-directed IRA. Join the campaigns of researching attorneys. Discuss the project and its fees.

Don’t sell your property within a year

If you sell your property within a year for a profit, the tax on that profit will be according to the average income tax rate. You will spend all your return on investment to buy at a low price and sell at a high cost. If you buy more than two properties in a year, the IRS will enforce the double tax on you because it will classify you as a self-employed dealer.

You can avoid all this by holding your property for more than a year after purchasing. This practice will reduce the IRS division risk, and tax on profit will benefit you. The tax on American tax gain will be 15%, which is lower than average income tax rates.

Don’t sell your residential property for two years

Do you ever think about doing a live-in flip? You move forward, over time, make advancements and renovations. The first capital gains will be tax-free if you are the residential property owner for at least two years. It is for only unmarried people, and married ones, the limit would be full.

Indeed, you may not wish to stay in a constant work zone or shift after every two years. The tinkering and renovation of your residence is a fun-loving process of tax-free earning.

Die as the owner of properties

If you die being an owner of properties, their actual acquisition cost will disappear. In this way, the authorities will not have capital gains. If your property is giving you a rental amount, don’t dare to sell it. For smooth cash flow, you must leave financial liabilities.

Your property will be handed over to your authorities after your death as a part of your estate. Maybe they will pay estate taxes. But, if you die wealthy, your estate would be tax-free. You can sell the property for more profit.

Conclusions

If you want to know the actual wealth management, you need to learn rules and regulations. Now, you have cleared about slashing your income taxes. Also, it would be best to acquire capitalization on the tax benefit that real estate owners enjoy. This way, you will save lots of money or make wealth with that savings.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

By: Jennifer Brazer

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

Fact Checked By: Brittany McMillen

Properly Manage Your Taxes: Top Tips for Success

Taxes represent one of the most significant financial obligations for individuals and businesses, requiring strategic planning, knowledge of current regulations, and careful optimization of deductions and credits to minimize liabilities while remaining compliant with IRS requirements. Whether you’re navigating the complexities of self-employment taxes, managing business deductions, or planning for retirement contributions, understanding the fundamentals of tax management can save thousands of dollars annually and prevent costly mistakes that trigger audits or penalties.

Tax season doesn’t have to be overwhelming when you have the right strategies in place. Over my 20 years as CEO of Complete Controller, I’ve guided thousands of businesses through tax planning challenges, from freelancers maximizing home office deductions to corporations navigating multi-state compliance requirements. This comprehensive guide will equip you with actionable insights on leveraging 2025 tax adjustments, optimizing your filing strategy, and implementing year-round planning techniques that transform taxes from a dreaded obligation into a powerful wealth-building tool. You’ll discover specific strategies for different tax scenarios, master the latest IRS updates, and gain the confidence to make tax-efficient decisions that align with your financial goals.

What does proper tax management mean?

• Proper tax management involves strategically organizing finances, maximizing deductions, staying compliant with deadlines, and planning proactively for future liabilities
• Strategic organization includes maintaining accurate records throughout the year rather than scrambling during tax season
• Maximizing deductions requires understanding both standard and itemized options to choose the most beneficial approach
• Compliance extends beyond filing on time to include quarterly estimated payments and proper documentation
• Proactive planning involves adjusting withholdings, timing income and expenses, and leveraging tax-advantaged accounts

Understanding Tax Brackets and Maximizing Deductions

The foundation of effective tax management starts with understanding how the progressive tax system works and identifying opportunities to reduce your taxable income through strategic deductions. The 2025 tax year brings significant adjustments that can impact your filing strategy, particularly with increased standard deductions and modified income thresholds.

For single filers in 2025, the standard deduction rises to $15,000, while married couples filing jointly can claim $30,000. These increases mean fewer taxpayers will benefit from itemizing deductions, making it crucial to evaluate your specific situation carefully. The marginal tax rates remain unchanged, ranging from 10% on income up to $11,925 for single filers to 37% on income exceeding $626,350.

Breaking down the 2025 tax brackets

Understanding where your income falls within the tax brackets helps you make informed decisions about timing income and maximizing deductions.

• • 10% bracket: Single filers earning $11,925 or less; married filing jointly earning $23,850 or less
• • 12% bracket: Single filers earning $11,926 to $48,475; married filing jointly earning $23,851 to $96,950
• • 22% bracket: Single filers earning $48,476 to $103,350; married filing jointly earning $96,951 to $206,700
• • 24% bracket: Single filers earning $103,351 to $197,300; married filing jointly earning $206,701 to $394,600
• • 32% bracket: Single filers earning $197,301 to $250,525; married filing jointly earning $394,601 to $501,050
• • 35% bracket: Single filers earning $250,526 to $626,350; married filing jointly earning $501,051 to $751,600
• • 37% bracket: Single filers earning over $626,350; married filing jointly earning over $751,600

Tax deductions vs. credits: Maximizing your savings

While both deductions and credits reduce your tax burden, they work differently and understanding this distinction can significantly impact your tax strategy. Deductions reduce your taxable income, effectively lowering the amount of income subject to tax. Credits, on the other hand, directly reduce your tax bill dollar-for-dollar, making them generally more valuable.

Common deductions include mortgage interest, charitable contributions, state and local taxes (limited to $10,000), and medical expenses exceeding 7.5% of adjusted gross income. For business owners and self-employed individuals, additional deductions encompass home office expenses, vehicle mileage, professional development, and equipment purchases.

Tax credits provide even greater value per dollar. The Child Tax Credit offers up to $2,000 per qualifying child, with up to $1,700 being refundable. The Earned Income Tax Credit can provide substantial relief for lower-income workers, while education credits like the American Opportunity Credit can offset up to $2,500 in college expenses.

Strategic Tax Planning for Different Scenarios

Every taxpayer faces unique challenges based on their employment status, income sources, and life circumstances. Tailoring your tax strategy to your specific situation maximizes savings and minimizes compliance risks.

Optimizing taxes for freelancers and self-employed professionals

Self-employment brings both opportunities and responsibilities in tax planning. As a freelancer or business owner, you’re responsible for both the employee and employer portions of Social Security and Medicare taxes, totaling 15.3% of net earnings.

Key strategies for self-employed tax optimization include:

• Quarterly estimated payments: Calculate and pay estimated taxes by April 15, June 15, September 15, and January 15 to avoid underpayment penalties
• Business expense tracking: Maintain detailed records of all business-related expenses, including software subscriptions, professional services, and marketing costs
• Home office deduction: Claim either the simplified method ($5 per square foot up to 300 square feet) or actual expenses based on the percentage of home used for business
• Retirement contributions: Maximize SEP IRA contributions (up to 25% of net self-employment earnings or $69,000 for 2025) or Solo 401(k) deferrals
• Health insurance premiums: Deduct 100% of health insurance premiums paid for yourself and family members

Managing family tax situations and the kiddie tax

Families with investment income need to navigate special rules designed to prevent income shifting to children in lower tax brackets. The Kiddie Tax applies to unearned income exceeding $2,700 for children under 19 (or full-time students under 24).

Understanding these thresholds helps families structure investments efficiently:

• First $1,350 of unearned income: Tax-free under the child’s standard deduction
• Next $1,350: Taxed at the child’s rate (typically 10%)
• Above $2,700: Taxed at the parent’s marginal rate

Strategic approaches include utilizing 529 education savings plans for tax-free growth and qualified withdrawals, investing in growth stocks that don’t generate current income, and considering custodial Roth IRAs for children with earned income.

Leveraging 2025 Tax Adjustments and Maintaining Compliance

The IRS annually adjusts various tax provisions for inflation, and 2025 brings several important changes that impact planning strategies. Staying informed about these adjustments helps you maximize benefits while avoiding costly mistakes.

Key tax adjustments for 2025

The most significant changes for 2025 include:

• Standard deduction increases: Single filers receive $15,000 (up from $14,600), while married filing jointly increases to $30,000 (up from $29,200)
• Retirement contribution limits: 401(k) deferrals increase to $23,500, with catch-up contributions for those 50+ remaining at $7,500
• Health Savings Account limits: Individual coverage allows $4,300 contributions, family coverage permits $8,550
• Estate and gift tax exemption: The lifetime exemption rises to $13.99 million per person
• Annual gift exclusion: Increases to $19,000 per recipient

Common IRS audit triggers and how to avoid them

Understanding what raises red flags with the IRS helps you maintain compliance while legitimately minimizing taxes. The IRS uses sophisticated algorithms to identify returns with higher audit potential.

Common audit triggers include:

• Income discrepancies: All income reported on W-2s, 1099s, and other information returns must match your tax return
• Excessive deductions: Claims significantly above average for your income level attract scrutiny
• Home office deductions: Claiming exclusive business use requires careful documentation
• Cash-intensive businesses: Restaurants, retail, and service businesses face higher audit rates
• Foreign accounts: Failure to report foreign bank accounts over $10,000 triggers severe penalties

Protecting yourself requires maintaining comprehensive documentation, including receipts, bank statements, and contemporaneous logs for business mileage and meals. Working with qualified tax professionals provides additional protection through their expertise in properly substantiating deductions.

Advanced Tax Planning Techniques

Sophisticated tax planning extends beyond annual filing to encompass multi-year strategies that optimize your overall tax burden. These techniques require careful timing and coordination but can generate substantial savings.

Timing income and deductions

Strategic timing of income recognition and deduction acceleration can significantly impact your tax liability, particularly when tax rates or circumstances change between years.

Income deferral strategies include:

• Retirement plan contributions: Maximize 401(k), 403(b), or IRA contributions to reduce current year income
• Deferred compensation: High earners can negotiate deferred compensation arrangements
• Installment sales: Spread gain recognition over multiple years for property sales
• Like-kind exchanges: Defer real estate gains through 1031 exchanges

Accelerating deductions involves:

• Bunching charitable contributions: Combine multiple years of donations to exceed standard deduction
• Prepaying deductible expenses: Pay January mortgage payments or property taxes in December
• Timing medical procedures: Schedule elective procedures when expenses exceed the 7.5% AGI threshold
• Business equipment purchases: Utilize Section 179 expensing or bonus depreciation

Tax-efficient investment strategies

Investment decisions significantly impact your tax burden, making tax-aware portfolio management essential for wealth accumulation.

Key investment tax strategies include:

• Asset location: Place tax-inefficient investments (bonds, REITs) in tax-deferred accounts while holding tax-efficient index funds in taxable accounts
• Tax-loss harvesting: Offset capital gains by selling losing positions while avoiding wash sale rules
• Qualified dividends: Focus on investments generating qualified dividends taxed at preferential rates
• Municipal bonds: High-income investors benefit from tax-exempt interest on municipal securities
• Long-term capital gains: Hold appreciating assets over one year to qualify for reduced tax rates

Technology Tools for Streamlined Tax Management

Modern tax software and financial technology have revolutionized tax preparation and planning, making professional-level strategies accessible to individuals and small businesses. Selecting the right tools depends on your complexity and comfort with technology.

Choosing the right tax software

The tax software landscape offers solutions ranging from free basic filing to comprehensive business packages:

• TurboTax: Offers extensive guidance and audit support, ideal for complex returns
• H&R Block: Combines software with optional professional review
• FreeTaxUSA: Provides free federal filing with affordable state returns
• QuickBooks: Integrates business accounting with tax preparation

For businesses, specialized solutions provide year-round benefits:

• Complete Controller: Cloud-based bookkeeping with integrated tax planning and compliance monitoring
• Xero: Real-time financial reporting with tax-ready reports
• FreshBooks: Simplified expense tracking for freelancers and small businesses

Automating tax planning throughout the year

Year-round tax planning beats last-minute scrambling every time. Technology enables continuous monitoring and optimization:

• Expense tracking apps: Automatically categorize business expenses and capture receipts
• Mileage tracking: GPS-based apps log business travel automatically
• Document management: Cloud storage organizes tax documents securely
• Estimated tax calculators: Avoid underpayment penalties with quarterly payment reminders
• Tax projection software: Model different scenarios to optimize current year decisions

Real-World Success: Case Study in Retirement Optimization

Sarah, a freelance marketing consultant earning $95,000 annually, transformed her tax situation through strategic retirement planning. Initially paying nearly $19,000 in federal taxes, she implemented a comprehensive strategy combining a Solo 401(k) and SEP IRA.

By contributing $19,500 to her Solo 401(k) employee deferrals and an additional $18,000 as employer contributions, she reduced her taxable income to $57,500. This strategic move dropped her from the 24% bracket to the 22% bracket, saving over $7,500 in federal taxes while securing her retirement future.

The key to Sarah’s success involved:

• Setting up automatic monthly contributions to ensure consistent savings
• Timing additional contributions based on high-income months
• Coordinating with her accountant to optimize quarterly estimated payments
• Reinvesting tax savings into a taxable investment account for medium-term goals

Conclusion: Your Tax Success Action Plan

Mastering tax management transforms a dreaded annual obligation into a powerful wealth-building strategy. The combination of understanding current tax laws, implementing year-round planning, and leveraging available deductions and credits creates substantial savings opportunities for every taxpayer.

Success in tax management comes from taking action before deadlines loom. Start by organizing your financial records, understanding your tax bracket, and identifying applicable deductions and credits. For business owners and freelancers, establishing systematic expense tracking and quarterly tax routines prevents year-end surprises.

As we navigate increasingly complex tax regulations and ongoing legislative changes, having expert guidance becomes invaluable. At Complete Controller, we’ve spent two decades helping businesses optimize their tax strategies while maintaining bulletproof compliance. Our cloud-based platform combines cutting-edge technology with seasoned expertise to transform your financial management.

Don’t wait until next April to start planning. Take control of your tax situation today and discover how proper tax management can accelerate your path to financial freedom. Contact the experts at Complete Controller to learn more about comprehensive tax planning strategies tailored to your unique situation.

FAQ

What is the 2025 standard deduction?

For tax year 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. Head of household filers receive a $22,500 standard deduction.

How do I file taxes online as a freelancer?

Freelancers can file taxes online using IRS Free File if income is below $79,000, or through commercial software like TurboTax or H&R Block. Report self-employment income on Schedule C and pay self-employment tax via Schedule SE. Track all business expenses throughout the year and make quarterly estimated payments to avoid penalties.

What are the IRS deadlines for 2025?

Individual tax returns (Form 1040) are due April 15, 2025. Estimated quarterly payments are due April 15, June 16, September 15, 2025, and January 15, 2026. Extension requests must be filed by April 15, extending the filing deadline to October 15, 2025, though taxes owed are still due April 15.

Can I deduct home office expenses?

Yes, if you use part of your home regularly and exclusively for business. You can choose between the simplified method ($5 per square foot, maximum 300 square feet) or actual expense method (percentage of home expenses based on office square footage). The space must be your principal place of business or used for meeting clients.

How does the Kiddie Tax apply in 2025?

The Kiddie Tax applies to children under 19 (or full-time students under 24) with unearned income exceeding $2,700. The first $1,350 is tax-free, the next $1,350 is taxed at the child’s rate, and amounts above $2,700 are taxed at the parent’s marginal rate. Parents must file Form 8615 with the child’s return.

Sources

• John Hancock. 2025 Tax Planning Guide. PDF, 2023.
• TIAA. Quick Tax Reference Guide. PDF, 2023.
• IRS. Tax Time Guide 2025. Newsroom, 19 Feb. 2025.
• IRS. Tax Topics – Topic 313 Kiddie Tax. https://www.irs.gov/taxtopics/tc313
• IRS. Tax Inflation Adjustments for 2025. Newsroom, 22 Oct. 2024.
• NerdWallet. Tax Planning Guide.
• Tax Foundation. Common IRS Audit Triggers. https://taxfoundation.org/
• Baird. 2025 Tax Planning Guide. Private Wealth, 7 Nov. 2024.
• Complete Controller. Maximizing Home Business Tax Benefits. https://www.completecontroller.com/maximizing-home-business-tax-benefits/
• Complete Controller. 9 Bookkeeping Tips for Small Businesses. https://www.completecontroller.com/9-bookkeeping-tips-for-small-businesses/
• Complete Controller. Self-Employed Retirement Alternatives to Increase the Pension. https://www.completecontroller.com/self-employed-retirement-alternatives-to-increase-the-pension/

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Debt, regardless of how big or small, needs to be managed. To deal with small debt, a person must keep up with their payments and ensure they don’t get out of control. On the other hand, when a person is in too much debt, they must put more effort into paying their debt while juggling payments on debts they are not paying.

Knowing How Much is Owed

A person can start by listing their debts, including the creditor amount, the total debt, the monthly payment, and the due date. A person can also use their credit report to confirm the obligations on their list. The list can be referred to as the debt periodically, especially regarding the bills that are paid. Update the list every few months since the amount of debt will change.

Paying Bills on Time Each Month

Late payments make it more challenging to pay off debts since they will have to pay a late fee. They are missing two consecutive payments and their interest rate along with increased finance charges.

If a person uses a calendar system on their computer or smartphone, they can enter their payments there and set an alert to remind them several days before a payment is due. If a person fails to make a payment, do not wait until the next due date to send payment because this will get a person reported to the credit bureau. Instead, send their payment as soon as they remember.

Create a Monthly Bill Payment Calendar

Use an invoice payment calendar to help determine which accounts to pay with which payment check. On your calendar, enter the payment amount of each invoice next to the due date. Next, fill in the date of each paycheck. You can use the same calendar month if you are paid on the same days each month, such as the first and fifteenth. However, if your paychecks fall on different days, it will help to create a new calendar for each month.

Make at Least the Minimum Payment

If a person can’t afford to pay for anything else, the least they can do is make the minimum payment. Of course, the minimum payment does not help them make real progress in paying off their debt. However, it stops their debt from growing. When they forget about payments, it becomes harder to catch up, and eventually, their accounts could default.

Decide What Debts to Pay in The First Place

Credit card debt is the best candidate for priority payment. The one with the highest interest rate usually prioritizes payment from all credit cards since it costs money. Use the debt list to prioritize and sort debts in order to be paid.

Pay the Charges and Cancellations

When a person has limited funds for debt repayment, they should focus on keeping their other accounts in good shape. People should never sacrifice their positive accounts for those who have already affected their credit. Instead, pay back bills when they can afford to do so.

Use an Emergency Fund to Fall Again

Without access to savings, a person would have to go into debt to cover an emergency expense. Even a small emergency fund will cover the small costs that arise occasionally. First, try to create an emergency fund of $1,000. Once that is achieved, they aim to create a larger fund, such as $2,000. Over time, you want to accumulate a reserve of six months of expenses.

Use a Monthly Budget to Plan Your Expenses

Maintaining a budget helps determine whether a person has enough money to cover all their monthly expenses. Plan well in advance, and a person can also take early action if it looks like they will not have enough money for their bills this month or next. A budget also helps plan to spend extra money that remains after expenses are covered. You can use this extra money to pay the debt faster.

Recognize the Symptoms That Need Help

If a person finds it difficult to pay off their debt and other bills each month, they can also get help from a debt relief company such as a credit counseling agency. Other options for debt relief are debt consolidation, debt settlement, and bankruptcy. All of them have advantages and disadvantages, so they weigh options carefully. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

There are many reasons a small business will consider getting a loan. Business loans can be used for start-up purposes or can be used to expand your growing business. Before you pursue a loan for your business, you should consider why you may need one. Here are the three most common reasons entrepreneurs should consider taking out a small business loan.

Expanding Your Physical Location

Your workspace bursts at the seams, while your new assistant needs to set up a shop inside the kitchen. It seems like you have outgrown your original office location, or maybe you run a retail store or a restaurant, and you have prospered enough that you have so many customers inside and outside that you need to increase the size of the place to serve them properly.

It most likely seems that your business is booming, so you are ready to expand. But because your business needs expansion does not mean that you will have cash in your hand. And so, for that reason, you might need a term loan to support your big move, whether you have to expand your location or completely change it.

Before committing, take precautions to measure the changes in your revenue that may come through expanding your location. You should ask yourself if you would rather still be able to cover your loan cost and earn some profit. If you plan on setting up a second retail shop, you must do some research before setting up your shop, or you might end up in even more debt and less than before.

Build Credit for the Future

If you are thinking of applying for a more extensive scale to finance your business in the next couple of years, the process can be started with a smaller loan, which is short-term, to bring credit to your business. Smaller businesses tend to have more difficulty applying for a long-term loan if the owner and the company do not have an excellent past credit report.

If you first start by taking smaller short-term loans in that way, you can build a much stronger loan credit for your business for the future. While doing this tactic, you can develop good relations with the specific lender.

This would eventually help you get a bigger loan since everyone knows goodwill is significant while doing business. Once the lender trusts that you can and will pay him, he lends you a bigger loan than you have ever requested without fearing you not returning it.

And be careful about what your first loan is going to be. If you ask for a loan you cannot repay, my friend, you are in trouble. One late payment on a smaller loan can affect your trust more than if you had never applied for a short-term loan.

Talented Experts

There are many responsibilities from the business owners’ end, especially when running a small business or start-up with a tight budget and a hope of progress. In such cases, businesses need new talented experts for business proceedings at minimum cost with high work and performance.

There are multiple services businesses must manage, such as marketing, customer services, fundraising, client dealing, bookkeeping, marketing, etc. As a small business owner, you must compromise your business model due to hindrances that resist its growth.

Conclusion

You need to remember two basic things while signing up for a loan: Can you repay all the loans you have taken? And is it worth your business to take the loan, or would it only lead you into even more debt? Try starting with small amounts to make goodwill of yourself to help you get those long-term loans. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A great business starts with a great business idea! However, not all creative business ideas are feasible. The success of a business depends on the efficiency of the implementation, market research conducted before starting the business, industry dynamics, skills and abilities of the team, and more. But how do you know a business idea that is worth the investment and effort? A business idea that sounds innovative and different isn’t always the business one must pursue. This article helps entrepreneurs make smart startup decisions as it helps in knowing which business ideas are good enough to pursue!

Does the Industry Allow Innovation?

A business will stand out in the competition if innovation is allowed. How else would an entrepreneur make a mark if he cannot do things differently? However, some industries, such as the health sector and other government-controlled industries, are too rigid to enable innovation and creativity. Entrepreneurs must talk to others already in the industry and analyze the ease of operations and space for innovation. Some industries are heavily regulated without never-ending rules and regulations, making it difficult for startups to operate. The industry may not be a great choice if the laws are difficult to work with.

Are the Resources Sufficient for the Implementation?

Having the resources required to start and run the business is essential. Entrepreneurs must look for affordable business ideas that do not require a heavy budget. However, do not fear high startup costs if the business can cover the expenses soon. Entrepreneurs must calculate the startup costs and the costs of operation for the first three years. Entrepreneurs are not expected to own all the money and the resources required. However, they must analyze the possible sources of finances and calculate if they can collect the desired amount through various means. If not, abort the idea! Also, entrepreneurs often make the mistake of starting multiple outlets at one point. The focus should be on doing as much as possible instead of going big!

Is the Market Saturated?

Entering a market with too many competitors is not a great idea. For example, think of an industry that is saturated with a lot of competitors. The customers are already comfortable with either of the competitors; therefore, acquiring customers will require substantial marketing efforts and a prominent positioning. Also, the threat of substitution between competitors will be high. The new business will have to keep the prices competitive to attract customers. The pressure in a competitive industry is high, and the policies must align with the existing market leaders. In these tight conditions, it is difficult for the startup to practice its ideology and values. Instead, look for a less-tapped market that has not been fully explored.

Do You Have the Expertise Required?

A great business does not mean it is great for everyone! Some people may have the expertise to run the business, while others may not. Therefore, those who do not must reconsider their decision. For example, think of an IT company that wants to revolutionize Virtual Reality by implementing it in the fashion industry. A person who lacks an understanding of information technology will not understand the technicalities associated with the business. On the contrary, someone well-versed in technology will better run the business. Exploring opportunities within one’s expertise is essential to bring out the best in the entrepreneur.

Entrepreneurs must make decisions carefully. A business of interest may not always be the right business to pursue. It would help if you considered several factors before deciding on a company. It would be best to professionally analyze the team’s strength, market dynamics, industry growth, costs, potential profits, and other aspects. Entrepreneurs have a limited budget and resources; therefore, you must spend the money meticulously.

Have you found the right business idea for yourself yet?

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Once a person retires, they will lose many things they relied on to help lower their taxes. These things include retirement plan assistance, dependents, and loan interest. A retired businessperson will lose even deductions. After retirement, people may not understand that even though they will make much less money, they might probably have to pay a more significant taxable income. A person must avoid paying these extra tax charges more than necessary, as they can lead a person into living their worst retirement nightmares. By using these tax-exempt retirement approaches mentioned below, a person will keep more hard-earned retirement funds instead of wasting them on taxes.

Municipal Bonds and Funds

Even though some of these income distributions from municipal funds and bonds are subject to state income taxes, none of these municipal funds are subject to federal income taxes. Due to this reason, the interest rate that these bonds will provide a person is a lot lower than taxable bonds. On the secondary market, any gains from selling and purchasing municipal bonds will have taxes, such as a typical short or long-term capital gain. Another great thing about these bonds is that there are no income limits regarding this benefit. However, there is some bad news; these municipal bonds and funds currently have a lower interest rate atmosphere, which means a retired person needs to have a heavy account balance between generating enough interest to meet their income needs.

Roth IRA

A Roth IRA is possibly one of the best, if not the best, tax-free retirement strategies that a person can use to save taxes. With this approach, a person’s after-tax funds go into their bank account and prosper in a tax-free environment, and a person doesn’t have to pay taxes on withdrawals either.

According to the majority of the American population, municipal bonds and funds are the best options for a tax-free retirement. Even though they are calculating the income for early receivers of Social Security, where Roth IRA payouts don’t work that way, they are more beneficial.

Opening a Health Savings Account

Another recently popular way is called a health savings account, which is a decent way to capitalize on tax-free retirement revenue. Nowadays, most employers add health savings to their company benefits to improve cost savings and add more flexibility to their plan designs. If a firm is offering a Health Savings Account, investing in that account yearly to receive long-term benefits is a great idea. If people follow the rules, they don’t have to pay any withdrawal tax either. The best thing about investing in a health savings account is that there are no limits, and all the contributions of HAS are tax-deductible.

“Turbo Roth” aka Indexed Universal Life Insurance

One of the best tax-free retirement approaches that can prevent paying extra tax is called “indexed universal insurance.” This method is best for people who have exploited their contributions to their IRA & 401K. The name “Turbo Roth” came from the fact that it shares Roth 401k’s main features.

The benefit of choosing Turbo Roth insurance is that it will not only provide a death benefit plan to guard your family and other loved ones but also help a person build money value throughout their lifetime.

These tax-free strategies for retirement can help a retired person save more money. Especially if someone is unsure whether they have saved enough for their retirement years, it is pleasant to know that whatever benefits and savings one might have, they won’t be wasting it on the IRS. Even though an utterly tax-free retirement income plan may not be realistic, keeping most of the money in the bank account with the help of these tax-free retirement plans can make a huge difference.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Why Would One Choose Bloggers for Promotion?

After retail and brand sites, publicity through blogging is the 3rd most authoritative resource. “Foodies” mostly go through the bloggers’ sites to evaluate the ratings of a restaurant to be chosen. So, inviting bloggers to visit the restaurant can prove very helpful for any restaurant’s promotion.

How to Choose the Blogger

When choosing a food blogger to invite, it is imperative to select the correct blogger. A person must check out the rblogger’s ranking on social networking sites. The blogs written by the blogger must be kept in concern. The views of the blogger should be kept in sight. These concerns will help in a regular flow of customers.

Collaborating With The Blogger

Once you select the blogger, start attracting them to the restaurant. To do that, at first, follow the blogger on all their social accounts. Comment on their posts and praise their work. Try to get in the blogger’s eyes. These steps will increase the blogger’s interest.

No Announcements

After contacting the blogger, do not make announcements promoting the restaurant. These seem formal and typically not a requirement. Friendly, talk about the restaurant and special deals. Do not use generic greetings with the blogger; call them by their name.

Introduction

Introduce the restaurant and the chefs in a frank manner. Introduce the new dishes and special offers to increase the interest and attention of the blogger.

Importance

Give keen importance to the blogger, and show them they are valuable and not taken for granted. Inform the blogger about the mutual benefits both parties can get after collaboration.

Presence of Mind

If the blogger refuses, stay calm; do not lose your temper. Greet the blogger, and I wish you better luck.

Creativity

Once good relations with the blogger have been developed, the next step is to give away the invitation.

Gratis Invitations

Invite the blogger to the respective restaurant at least once a week. However, the invitation should be out of charge.

Look Book

It would be best to create a lookbook of the restaurant in view. It should contain all the special deals and unique dishes to draw anyone’s attention. If the lookbook is attractive enough, it will draw the blogger’s interest in the restaurant.

An Event

Arrange an elegant event and invite the blogger. It should ensure that the blogger is invited 1 to 2 weeks before the actual date of the event. It would be best if you did not ask the blogger at the last minute as it implies that the respective blogger was not very influential and taken as the last option. Invite the blogger sooner and make them realize their importance.

Extra Visit

Allow the blogger to visit the restaurant’s kitchen and meet the chef. Let the chef make exclusive dishes in front of the blogger. Let the blogger capture the moments. In this way, you will enhance the iblogger’s interest in their viewers.

Evaluations

After the blogger’s attention is committed to the restaurant, it’s time to make a move.

Ready Plans

Provide the blogger with ready-made plans for promotion. The more plans provided, the more advertisements for the restaurant will be placed, as all bloggers prefer already-made plans. Consequently, the blogger will blow out ads for the restaurant.

Comprehending a Blogger’s Point of View

When trying to understand the blogger well, it is essential to comprehend their views better. This way, the blogger doesn’t have to explain everything and doesn’t get frustrated.

Search-Engine Ranking

Once all the steps mentioned above have been done and the blogger has started writing about the respective restaurant, the search engine ranking of the restaurant will increase tremendously. The viewers will be more interested in the already incredible views of the blogger about the restaurant.

Following these tips makes it more likely for the restaurant and its items to get more reviews. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.