For many small business owners, the Qualified Business Income (QBI) deduction, also known as the Section 199A deduction, has been an important tax saving opportunity since its introduction under the Tax Cuts and Jobs Act. The deduction was originally scheduled to expire after 2025. However, the OBBBA made the QBI deduction permanent, providing greater certainty […]
Recording Payments on Notes Payable and Interest Expense
Overview One common issue we see in private lending is the improper recording of payments on notes payable. This can misstate both the outstanding debt balance and the related interest expense. When the debt agreement is an interest-only note or a term note with a balloon payment, accounting errors are less likely because the required […]
When the Loan Schedule and General Ledger Do Not Agree: What Private Lenders Need to Know
Private lenders often rely on a loan schedule or servicing platform to monitor individual loans, borrower payments, interest, fees, maturity dates, and other loan-level activity. At the same time, the accounting department relies on the general ledger to prepare the organization’s financial statements. Because these records serve different purposes and may be maintained by different […]
Audit-Ready by Design: Five Year-Round Accounting Practices for Private Lenders
When a private lender’s audit becomes delayed or unexpectedly difficult, the cause can often be traced to processes that broke down months before fieldwork began. A loan schedule was not reconciled, a modification never reached accounting, borrower cash remained unapplied, or a significant valuation decision was postponed until the auditor raised the question. These […]
Short-Term Rental Tax Rules: What VRBO and Airbnb Owners Need to Know
With the continued growth of short-term rental platforms such as VRBO and Airbnb, many taxpayers are asking whether these activities qualify for special tax treatment. In certain situations, short-term rentals can provide a significant tax advantage by allowing losses to be treated as non-passive, making them deductible against other sources of income. Because most rental […]
Why Year-Round Tax Planning Matters
Many private lenders and business owners are focused on day-to-day operations and typically only address taxes when it’s time to file their return. Unfortunately, waiting until year-end can mean missing valuable opportunities to reduce tax liabilities and maximize available tax benefits. Tax planning should happen throughout the year, not just during tax season. Regular reviews […]