Every recommendation an advisor makes carries tax consequences, and with the One Big Beautiful Bill Act reshaping the rules, the cost of getting them wrong has never been higher. Tax Facts on Individuals & Small Business is the complete, go-to resource for the tax questions individual taxpayers and small business owners face most often. Its thousands of easy-to-use Q&As deliver clear, authoritative answers on everything from capital gains and business income to buy-sell agreements and small business valuation, giving CPAs, attorneys, and financial and estate planners the up-to-date guidance they need to head off costly mistakes and fix problems when they do arise.

This book features:

• Easy-to-read Q&As covering both individual tax issues and the tax issues small business owners are most likely to encounter
• Practical guidance for CPAs, attorneys, and estate and financial planners
• Detailed explanations of the investment products and techniques most commonly used by individuals and businesses
• Practice Points with concise advice on handling real-world issues
• Insight that helps you avoid problems before they become costly mistakes, and correct them when they occur

New in the 2027 Edition:

• One Big Beautiful Bill Act changes, including:
• The new deduction for employee tip income, the IRS's options for claiming it in tax year 2025, and the Schedule 1-A
• The new deduction for qualified overtime compensation and how employers must report overtime pay on Form W-2
• The new IRC Section 25F credit for contributions to eligible scholarship-granting organizations
• The DOL's 2026 proposed standard for independent contractor status, which largely returns to the 2021 "economic realities" test
• Annual Form 1099-K reporting requirements for third-party settlement organizations such as PayPal and Venmo
• Analysis of the Fifth Circuit's decision in K Alain, L.L.L.P. v. Commissioner, which applies an activity-based standard to determine who qualifies as a limited partner
• Proposed IRS, DOL and HHS regulations that would allow certain fertility benefits to be classified as excepted benefits
• Analysis of Supreme Linen Services, Inc. v. United States, in which the court upheld the IRS's authority to administer the IRC
• Educational assistance programs, including employers' freedom to restrict which expenses are covered
• New proposed regulations on how dependent care assistance programs can satisfy the 55% average benefits test
• Analysis of United States v. Huckaby and the importance of state-level limits on using asset protection trusts for creditor protection

Key Topics Covered:

• Capital gains and losses
• Business income, including passive and active income
• Estate planning for small business owners
• Bad debts and worthless securities
• Small business valuation
• Buy-sell agreements
• Casualty and theft losses for individuals and businesses
• Nontaxable exchanges