Hello All,
It's summertime! This year is going to be extra special with America's 250th birthday celebration and the World Cup! It will be an exciting summer as your business progresses. Summer is a good time to think about long term strategies whether it's for business growth or a tax savings plan. If you want to discuss planning, please reach out so we can tailor discussions to your individual needs.
Upcoming federal & state deadlines
June 15th Q1 2026 estimated tax deposits are due for both federal and state, where applicable.
June 15th [CA LLCs only] If your LLC is expected to gross over $250K in revenues in 2026, you must pay an additional LLC fee of $900.
June 15th [CA S Corps or multimember partneships only] If you want to participate in the CA pass-through entity tax, the deposit or 50% of last year's PTE credit must be deposited with the CA Franchise Tax Board.
Please refer to your individual emails for any other state or local deadlines.
Fully deductible meals & entertainment
The passage of the One Big Beautiful Bill in 2025 clarified one large deduction available to all employers. If you treat your staff and their spouses to both food and entertainment for a once-a-year team celebration, the entire event (both entertainment and meals) can be 100% fully deductible. The event must be available to all employees and categorized as an annual event, holiday party, and/or employee appreciation meal. The event must primarily benefit the employee, not the shareholder or owner.
If you have fewer than a handful of employees, you cannot treat every business meal as employee appreciation for the full deduction. There must be clear documentation showing the event was non-routine and involved enhanced planning.
Fully deductible meals with clients and vendors - N/A
This deduction is unavailable if the event is for vendors or clients. Independent contractors are considered vendors, not employees. If your annual party benefits vendors (i.e., independent contractors), you can only deduct 50% of the meals and 0% of the entertainment.
Have a great summer and we'll talk more!
Kind regards.
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Neel Sodha, CPA CPA License No. 102833
213-399-3820
