To help ensure small businesses take advantage of all potential tax breaks, the IRS Taxpayer Advocate Service summarizes the types of tax…
Continue reading10 Small Business Tax Tips from the IRS
Closing a Business? Here’s How to Stay on Top of Your Tax Duties
Businesses close for various reasons. Perhaps you’re ready to embark on a welcome change such as retirement or launching a new venture…
Continue readingYou May Owe the “Nanny Tax” Even Without a Nanny
Don’t let the name “nanny tax” fool you. It’s a tax that applies to the wages of a variety of types of household help you hire, such as…
Continue readingThe Tax Impact of Business Bartering
Bartering is simply the exchange of services or property, and it’s a taxable event. For example, if a computer consultant trades services…
Continue readingWhat Could Happen if You Don’t File a Required Tax Return?
Taxpayers who are required to file a federal tax return but don’t may be in for a costly surprise. If the IRS receives a document like a Form W-2 indicating taxable income, it may file a Substitute for Return (SFR) on your behalf.
Before doing so, the IRS typically will attempt to contact you and encourage voluntary filing. If you fail to file by the deadline, the IRS can move forward with an SFR. The resulting tax bill will likely be higher than necessary because it won’t include deductions or credits you qualify for.
If you receive a Notice of Deficiency with a proposed assessment, don’t delay. Respond within 90 days to avoid further action and additional penalties. Contact the office for help.
408-252-1800
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Press Release: Nick Satterfield Joins Wheeler Partnership Group
San Jose, CA — July 1, 2025 — Wheeler Accountants is proud to announce the promotion of Nick Satterfield, CPA, to Partner, effective July 1, 2025, bringing the total number of partners to 8. This milestone marks a significant career achievement for Nick, who began his journey with the firm as an intern in 2014.
After graduating from Santa Clara University with a Bachelor of Science in Accounting, Nick joined Wheeler full-time in 2015. He went on to earn his CPA license and later complete a Master of Science in Taxation at Golden Gate University in 2020. Over the past decade, Nick has become a true partner to his clients, skillfully advising across various tax planning specialties including equity compensation, real estate investments, and retirement planning. He has been serving for the past year as a Senior Tax Manager, recognized for his leadership, technical expertise, and deep client relationships. The Wheeler partner group looks forward to welcoming him into the next phase of his career as one of their own.
“Nick is our third ‘home-grown’ partner, and the very first to rise to this distinction starting out as an intern over a decade ago,” notes Matt Wheeler, Managing Partner. “Over the past year in particular, Nick has truly stepped into the role of trusted advisor. Clients and referral sources alike have increasingly gone to him first, and he has become one of our most effective business developers.”
Matt added, “Personally, I have an immense sense of pride in seeing Nick achieve this honor as I have been there at ground level to closely witness his growth the last couple of years. He exemplifies the attributes we define as essential to partnership at our firm, and his leadership in business growth and internal initiatives demonstrates his commitment to both innovation and team success.”
Nick lives in Novato, California, with his wife, Shelby, and their two children. Outside of the office, he enjoys getting outdoors with his family, including camping, golf, and travel.
About Wheeler Accountants
Wheeler Accountants LLP is a full-service accounting and advisory firm based in San Jose, California. The firm offers a comprehensive range of services, including tax planning and compliance, attest services, and business consulting, accounting, and valuation. Wheeler Accountants is committed to delivering personalized solutions to help clients achieve their financial goals.
408-252-1800
Choosing the Optimal Accounting Method for Tax Savings
The accounting method your business uses to report income for tax purposes, either cash or accrual, can significantly impact your tax bill.
Continue readingSending the Kids to Day Camp this Summer?
If your child is going to a summer day camp while you work, it may count as an expense toward the federal Child and Dependent Care Credit. For one qualifying child under age 13, you may annually use up to $3,000 of eligible child care expenses, including day camp expenses, to claim the credit for one child, or $6,000 for two or more children. Under current law, the credit ranges in value from 20% to 35% of the expenses up to those limits, depending on the taxpayer’s income.
Note, overnight camp costs don’t qualify for the credit and aren’t deductible. Contact the office with your questions.
408-252-1800
Photo by Chevanon from Freerange Stock.
What’s Your Business Exit Strategy?
Ever since you became a business owner, you’ve focused on growing revenue, managing expenses and leveraging tax advantages. But don’t overlook a critical element of your long-term financial well-being, that is, a business exit strategy. Ideally, your exit strategy will help you meet your retirement and estate planning goals.
Multiple-Owner Businesses
A buy-sell agreement is a powerful tool for businesses with multiple owners. A well-drafted agreement outlines what happens if specified events occur, such as the owner’s retirement, disability or death. The agreement should:
- Create a ready market for the departing owner’s interest,
- Establish a valuation method, and
- Help prevent disputes by keeping ownership transitions clear.
Life or disability insurance can help fund the buyout and can give rise to several tax issues and opportunities. Life insurance proceeds are generally tax-free to the beneficiary, provided certain conditions are met, making this a tax-efficient strategy.
Family Ownership
If you have family members who are willing and able to fill ownership roles in the business, you can pass your business on by giving them interests, selling them interests or doing some of each. Consider your income needs, the tax consequences, and how family members will feel about your choice.
Under the annual gift tax exclusion, in 2025, you can gift up to $19,000 of ownership interests without using up any of your lifetime gift and estate tax exemption. Valuation discounts may further reduce the taxable value of the gift.
With the gift and estate tax exemption for 2025 at $13.99 million, gift and estate taxes may be less of a concern for some business owners. However, others may want to make substantial transfers now to take maximum advantage of the high exemption. What’s right for you will depend on the value of your business and your timeline for transferring ownership.
Outside the Family
If family succession isn’t the right fit, you might consider selling the business to key employees. This requires significant planning, including executive compensation plans, loans and possibly “key person” life insurance. So you’ll need plenty of time and professional guidance to put the elements in place.
Another option is a leveraged Employee Stock Ownership Plan (ESOP), under which an ESOP trust borrows funds to buy the company. Then stock units are periodically awarded to eligible employees and are eventually vested.
Finally, there’s the option to sell to an outsider. If you can find the right buyer, you may be able to sell the business at a premium. Putting your business into a sale-ready state can help you get the best price. This generally means transparent operations, assets in good working condition and minimal reliance on key people.
For the Best Chance of Success, Start Early
Whatever path you pursue, you want your business to be in good hands in the future. Your exit strategy will require planning well in advance of retirement or any other reason for an ownership transition. Contact the office for assistance.
408-252-1800
Photo by Life of Pix from Freerange Stock.
Invest in Your Kids’ or Grandkids’ Future with Help from the Tax Code
If you’re thinking about helping a child or grandchild pay for school, you’re not alone, and you’re not without help. While families have always saved for education, Section 529 plans have made it easier and more tax-efficient.
Tax Advantages
With a 529 plan, your contributions grow tax-deferred, and no taxes are due when the money is used for qualified education expenses. These include postsecondary school expenses such as tuition, mandatory fees, books, supplies, computer equipment, software, internet service and, generally, room and board (for students enrolled at least half-time). Contributions aren’t deductible for federal purposes, but many states offer tax breaks or matching grants for contributions.
Contributions to a 529 plan may be shielded from gift tax by the annual gift tax exclusion, which for 2025 is $19,000 per recipient ($38,000 for joint gifts by a married couple). You can even choose to front-load five years’ worth of annual exclusion gifts into a 529 plan contribution in a single year. For instance, you and your spouse can contribute up to $190,000 per recipient in 2025, exempt from gift tax. Any excess contributions can potentially be made gift-tax-free under the federal gift and estate tax exemption ($13.99 million in 2025).
529 Plans Gain Flexibility
Before the Tax Cuts and Jobs Act (TCJA), the tax exclusion for qualified expenses was strictly limited to postsecondary education. The TCJA expanded this tax break to $10,000 of tuition per year at an elementary or secondary public, private, or religious school.
More recently, thanks to the SECURE Act, you may use up to $10,000 in a 529 plan to repay the beneficiary’s student loans, plus another $10,000 to repay student loans held by the beneficiary’s siblings. It also allows 529 funds to pay for apprenticeships (for example, classroom instruction at a community college).
In addition, under SECURE 2.0, from 2024 forward, up to $35,000 (lifetime limit) in unused 529 plan funds can be rolled into a Roth IRA for the beneficiary, subject to various rules.
Also, changing how financial aid is calculated on the Free Application for Federal Student Aid (FAFSA) form may help grandchildren. Gifts from grandparents to 529 accounts no longer affect the allowable aid.
Finally, legislation has been proposed that would allow tax-free 529 plan distributions for even more types of education-related expenses. Contact the office for the latest information.
408-252-1800
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