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Let’s Talk IRAs: What They Are and Why They Matter- Kelly Braese Senior Tax Associate

Navigating the complex world of retirement planning can feel overwhelming, but understanding IRAs might be the key to unlocking your financial future. In this information-packed episode, Kelly Braese, Senior Tax Associate at MP CPAs, demystifies the power and potential of Individual Retirement Accounts as wealth-building tools that go far beyond basic retirement savings.

Kelly breaks down the fundamental differences between IRAs and employer-sponsored plans like 401(k)s, highlighting the greater flexibility, investment options, and portability that IRAs offer. The conversation explores the critical distinctions between traditional and Roth IRAs – from tax treatment and contribution limits to withdrawal rules and required minimum distributions. For those weighing their options, Kelly provides clear guidance on how each account type might benefit different financial situations and future goals.

The episode doesn't stop at basics. Kelly dives into specialized IRA options for self-employed individuals and small business owners, including SEP IRAs with their impressive $70,000 annual contribution limit and SIMPLE IRAs with employer matching requirements. She also reveals strategic planning techniques like the "backdoor Roth" conversion that allows high-income earners to access Roth benefits despite income limitations. Whether you're just starting your retirement planning journey or looking to optimize existing accounts, this episode delivers actionable insights to help maximize your long-term wealth while minimizing tax burdens.

Wondering which IRA is right for your specific financial situation? Connect with the expert team at MP CPAs by visiting TheMPGroupCPA.com or calling 413-739-1800 to develop a personalized strategy that aligns with your goals. After all, as we always say, success begins with Knowing What Counts.

To learn more about MP CPAs visit:
https://thempgroupcpa.com/
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Digital Assets, Real Taxes: The Tax Implications of Trading Cryptocurrency – Jack Labranche Tax Senior

Trading cryptocurrency might feel like digital magic, but the tax consequences are very real. In this essential episode of Knowing What Counts, senior tax associate Jack LaBranche demystifies the complex world of digital asset taxation.

The conversation begins with a clear distinction between digital assets (anything digital with value) and cryptocurrency (a specific type of digital asset functioning as digital money). Jack expertly breaks down the five key activities that trigger tax events: selling crypto, exchanging between different cryptocurrencies, using crypto to purchase goods, earning crypto through mining or staking, and receiving crypto as payment for services. Each scenario carries distinct tax implications that traders need to understand.

Most crucially, Jack explains that the IRS considers cryptocurrency as property rather than currency, subjecting it to capital gains rules similar to stocks. However, crypto enjoys a significant advantage over traditional securities – it currently isn't subject to the "wash sale rule," allowing traders to sell at a loss, immediately repurchase, and still claim the tax loss. This creates a powerful tax planning opportunity, though Jack cautions this loophole may close in the future. Other digital assets like NFTs face specialized treatment, potentially being taxed as collectibles at rates up to 28%.

The conversation also covers practical considerations: the critical difference between crypto wallets (digital safes for your keys) and exchanges (trading platforms with no FDIC protection), essential record-keeping practices, and upcoming regulatory changes like the new Form 1099-DA arriving in 2025. Jack's final advice emphasizes education, meticulous record-keeping from day one, and working with tax professionals who understand the rapidly evolving digital asset landscape.

Whether you're a crypto novice or experienced trader, this episode delivers actionable insights to help you protect your digital investments from unexpected tax surprises. Listen now and ensure your crypto strategy accounts for what truly counts – keeping more of your gains through proper tax planning.

To learn more about MP CPAs visit:
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The Interest Expense Dilemma: Breaking Down IRC 163j Limitations - Featuring: Estefania Cabrera, Senior Tax Associate

Tax planning can make or break your business strategy, and nowhere is this more evident than with interest expense deductions. In this eye-opening episode of Knowing What Counts, Senior Tax Associate Estefania Cabrera unravels the complex world of IRC Section 163J limitations – rules that could significantly impact how much of your business interest expense you can actually deduct.

Originally targeting foreign-owned companies using U.S. subsidiaries to lower tax bills through interest deductions, the Tax Cuts and Jobs Act of 2017 expanded these limitations to most U.S. businesses. We break down exactly how these rules work: limiting business interest deductions to 30% of adjusted taxable income plus 100% of business interest income. But who's affected? Estefania explains the small business exemption for companies with average gross receipts under $31 million and special elections available for farming and real estate businesses.

The conversation takes a practical turn as we explore how these limitations affect different entity types. For corporations, the process is straightforward with limitations applied and tracked at the corporate level. Partnerships face more complexity, with excess interest passed through to partners who must then track these amounts themselves. We also discuss a critical change after 2022 – the elimination of the depreciation add-back provision that creates a counterintuitive situation where taking more depreciation can actually reduce allowable interest deductions.

Avoid common pitfalls we see clients encounter: incorrectly assuming exemption status, partners losing track of excess interest carry-forwards, and businesses failing to properly combine related entities' gross receipts. Whether you should slow down depreciation, capitalize interest expenses, or elect out of limitations entirely depends on your specific situation. The key takeaway? These rules change annually with inflation adjustments, so staying connected with your tax advisor is crucial for effective planning. Don't wait until tax filing time to discover these limitations – by then, it's too late to implement strategic changes.

Visit TheMPGroupCPA.com or call 413-739-1800 to speak with our tax experts about optimizing your business interest deductions while remaining fully compliant with evolving tax regulations.

To learn more about MP CPAs visit:
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Gifting Your Estate: Estate and Gift Tax Strategies - Featuring: Anthony Trinchini, Senior Tax Associate

Financial security isn't just about what you build—it's about how effectively you pass it on. When senior tax advisor Anthony Trinchini joins the Knowing What Counts podcast, he cuts through the complexity of estate planning to reveal strategies that protect wealth while minimizing tax exposure.

The conversation begins with the essential mechanics of gift and estate taxes. Anthony explains how the annual exclusion ($19,000 per recipient in 2025) works alongside the lifetime exemption (nearly $14 million per person). The key insight? Gifting appreciating assets early freezes their value for tax purposes while shifting all future growth outside your estate—a powerful wealth preservation technique too many people discover too late.

Trusts emerge as versatile tools with distinct advantages. Revocable trusts don't reduce estate taxes but help avoid probate. Irrevocable trusts remove assets from your estate entirely. Grantor trusts allow you to cover the income taxes, essentially making additional tax-free gifts. The discussion explores specialized options like QPRTs (Qualified Personal Residence Trusts) for transferring homes at discounted values, GRATs (Grantor Retained Annuity Trusts) for capturing excess growth of appreciating assets, and SLATs (Spousal Lifetime Access Trusts) that allow married couples to reduce estate taxes without surrendering complete access to assets.

Beyond trusts, Anthony highlights two additional powerful strategies: 529 education plans with their front-loading capability ($95,000 individual/$190,000 couple tax-free gifting in a single year) and family LLCs that enable valuation discounts of 20-40% when gifting business interests. His most emphatic advice? Start early with coordinated planning between your CPA and estate attorney. Estate planning isn't one-size-fits-all—it should align with your family's unique goals and values.

Ready to protect your legacy and minimize tax burdens? Connect with the expert team at MPCPAs today by visiting mpgroupcpa.com or calling 413-739-1800. Remember, success begins with knowing what counts.

To learn more about MP CPAs visit:
https://thempgroupcpa.com/
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Big, Beautiful Breakdown: Big Beautiful Bill Tax Takeaways – Joe Oliveira Tax Director

The tax landscape is shifting dramatically with the signing of the "Big, Beautiful Bill" this July 4th, and understanding these changes now could save you thousands in the coming years. Join tax expert Joe Oliveira as he cuts through the headlines and misconceptions to reveal what this legislation actually means for your wallet.

Much has been made about "no tax on tips" and "no tax on overtime," but Joe explains the reality: starting in 2025, service workers can deduct up to $25,000 in tip income, while overtime workers can claim deductions up to $12,500 (single) or $25,000 (joint). These above-the-line deductions don't require itemizing and help lower your AGI, potentially unlocking other tax benefits.

The conversation explores the dramatic increase in the SALT cap from $10,000 to $40,000, empowering taxpayers in high-tax states to deduct significantly more of their state income and property taxes. Families will benefit from an enhanced Child Tax Credit ($2,200 in 2025), while all taxpayers can look forward to a new charitable giving deduction available without itemizing. There's even a surprising new deduction for auto loan interest up to $10,000 annually, though Joe cautions this comes with specific requirements, including U.S. assembly of the vehicle.

Business owners have reason to celebrate with the Section 179 deduction increasing to $2.5 million, the return of 100% bonus depreciation, and the restoration of immediate R&D expense deductions. Investors receive particularly favorable treatment for Qualified Small Business Stock, with potential 100% tax-free gains for holdings of five years or more.

With green energy credits expiring after 2025 and electric vehicle incentives ending this September, now is the time for strategic tax planning. Contact Joe and the MP CPAs team at 413-739-1800 to develop your personalized strategy that transforms these tax changes into lasting financial advantages. Remember – in the world of taxes, being proactive beats being reactive every time.

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Taxing the Extras: Fringe Benefits and Their Tax Consequences – Sam Moriarty Tax Senior Associate

The complex world of fringe benefits sits at the intersection of employee satisfaction and tax compliance—a space where both employers and employees need expert guidance to navigate successfully. Tax Senior Associate Sam Moriarty pulls back the curtain on these valuable workplace perks that extend beyond basic salary.

Sam brings 23 years of expertise to this discussion, explaining how benefits like health insurance, paid time off, 401k matching, and company facilities must be properly reported to avoid costly penalties. For employees, these perks create a sense of value and address essential needs, allowing them to focus on performance without external worries. For employers, a thoughtful benefits package becomes a powerful tool for attracting talent, boosting morale, and reducing turnover in competitive markets.

The tax implications can be significant and sometimes surprising. S corporation shareholders must treat health insurance as taxable income on their W-2s, while company vehicles for personal use require proper reporting as well. Improper handling of these requirements can trigger underpayment penalties with accumulating interest for employers, while employees might face the headache of amended tax returns and unexpected liabilities. As the workplace evolves, so do fringe benefits—with flexible schedules, remote work options, daycare reimbursement, pet-friendly policies, and on-site facilities becoming increasingly common. Before implementing any benefit program, Sam strongly recommends consulting with an attorney experienced in employment law to navigate the complex regulatory landscape.

Call 413-739-1800 to connect with our team and ensure your benefit strategy enhances employee satisfaction while maintaining full tax compliance.

To learn more about MP CPAs visit:
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Giving Smarter: Innovative Paths to Charitable Giving – Jason Warner Tax Senior Associate

Charitable giving transcends simple generosity when approached strategically. In this enlightening conversation with tax senior associate Jason Warner, we uncover powerful charitable vehicles that can transform your giving impact while optimizing tax benefits.

Many donors default to writing checks to their favorite organizations without realizing there are more sophisticated options available. Jason walks us through four key charitable strategies that high-net-worth individuals and business owners should consider. Donor-advised funds offer flexibility and immediate tax deductions while allowing contributions to grow tax-free before distribution. Charitable remainder trusts provide income streams to donors while ultimately benefiting chosen charities. Charitable lead trusts work in reverse, benefiting charities first before transferring remaining assets to heirs—an excellent tool for multi-generational wealth planning.

For those over 70½, Qualified Charitable Distributions from IRAs present a straightforward yet powerful giving approach, allowing up to $108,000 in annual charitable gifts while satisfying Required Minimum Distributions without increasing taxable income. Jason highlights the significant advantage of donating appreciated assets rather than cash—the most common mistake donors make—which provides a double tax benefit through full-value deductions and avoiding capital gains tax.

Whether you're a high-net-worth individual looking to maximize philanthropic impact or a business owner seeking to integrate charitable giving into your tax strategy, this episode delivers practical insights for strategic philanthropy. Remember, success begins with knowing what counts. Ready to optimize your charitable giving strategy? Call 413-739-1800 to connect with our expert team today.

To learn more about MP CPAs visit:
https://thempgroupcpa.com/
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413-739-1800

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Entity Essentials: Choosing the Right Structure for Your Business

Selecting the right business entity structure might be the most consequential decision you'll make as an entrepreneur. Tax implications, liability protection, paperwork requirements, and future growth potential all hinge on this critical choice.

In this comprehensive guide, MP CPAs Tax Senior Associate Katelyn Henderson walks us through the maze of business entity options with clarity and expertise. We begin by exploring essential first steps for any new business venture, from crafting a solid business plan to securing financing and navigating registration requirements. Then we dive deep into the five main legal structures available to business owners—sole proprietorships, partnerships, LLCs, S-corporations, and C-corporations—examining their distinct advantages and potential drawbacks.

For sole proprietors, simplicity and complete control come with unlimited personal liability risk. Partnerships offer increased capital potential but similar liability exposure. LLCs provide that crucial liability shield with flexible distribution options, while S-corporations eliminate self-employment tax but require reasonable compensation through W-2 wages. C-corporations maximize protection and capital-raising potential but face the most regulatory hurdles.

Whether you're launching a new venture or reconsidering your current business structure, this episode provides the knowledge framework you need to make informed decisions that align with both your immediate needs and long-term vision. Connect with our team of experts at MP CPAs to develop a customized strategy for your business's success.

To learn more about MP CPAs visit:
https://thempgroupcpa.com/
MP CPAs
413-739-1800