Zebulon Tax Advisory LLC

Imagine if a fraud perpetrator wiped out your 401(k) account balance overnight. Would you still be able to retire? Millions of dollars in U.S. retirement plans have been stolen thanks to hackers, identity thieves and social engineers, such as scammers using phishing emails to obtain financial and other personal information. But you can protect your hard-earned savings! Call us (973) 346-4150 for retirement planning help.

Technology decisions are a common pain point for small business owners. You might be unsure when to invest in new technology and how much to spend. After all, there’s nothing worse than a “solution” that doesn’t solve anything. Poor choices can lead to wasted money, time and staff effort. The good news? You can avoid this situation with a thoughtful, strategic approach to technology selection and implementation. Call us at (973) 346-4150 to discuss your needs, set a realistic budget and take the right steps to get a sound return on investment.

The stepped-up basis rules can reduce capital gains tax for family members who inherit your assets. Under these rules, when your loved one inherits an asset, its tax basis is “stepped up” to its fair market value at the time of your death. If the heir later sells the asset, he or she will owe capital gains tax only on any appreciation after your date of death, rather than on the entire gain since you acquired it. Investment accounts, business interests, real estate and personal property are among the assets affected by the stepped-up basis rules. Call us at (973) 346-4150 for details.

Are rental real estate activities eligible for the qualified business income (QBI) deduction? The answer is a distinct “maybe.” This tax break allows eligible sole proprietors and owners of “pass-through” entities to deduct up to 20% of QBI. Pass-through entities include partnerships, S corporations and most limited liability companies. However, income from a rental real estate activity is QBI only if the activity rises to the level of a trade or business or meets an IRS safe harbor, which generally requires separate records, sufficient rental services and specific documentation. Various limits and other restrictions also apply. Call us at (973) 346-4150 to learn more.

F**A taxes on W-2 wages are split equally between employee and employer. For self-employment income, you pay both halves, but the “employer” half is deductible. If you own and work in a business structured as a partnership, the income passing through to you for income tax purposes generally is also subject to self-employment taxes, even if it isn’t distributed to you. If your income exceeds certain levels, you also could be subject to the 0.9% additional Medicare tax. Call us at (973) 346-4150 to review your situation.

If you’d like to arrange for a transfer of wealth through multiple generations, consider a dynasty trust. Assets are taxed just once, when they’re initially transferred to the trust. There’s no estate or generation-skipping transfer tax due on any subsequent appreciation in value. A drawback is that the trust is irrevocable. This means it generally can never be revised. Call us at (973) 346-4150 for more details.

Will Social Security benefits be available when you retire? Good question. These benefits are unlikely to disappear entirely. But payments may be smaller, and the qualifying age for full benefits (currently 65 to 67, depending on your date of birth) may increase. So it’s critical to take advantage of tax-deferred retirement vehicles and to make age-appropriate investments that can help you accumulate adequate savings. Call us at (973) 346-4150 to discuss your retirement goals and ways to achieve them.

Does your business provide complimentary on-site food and beverages for employees? The rules for deducting certain business meals have changed. Beginning in 2026, employers generally can’t deduct 1) meals treated as de minimis fringe benefits, or 2) employer-provided meals that are excludable from an employee’s income and provided for the employer’s convenience on business premises. For the 2025 tax year, generally the former were 100% deductible and the latter were 50% deductible. Contact us at (973) 346-4150 to discuss whether this change will affect your company and how to plan accordingly.

If you’d like to help a charity for a period of time but ultimately benefit one or more heirs and potentially save gift and estate taxes, consider a charitable lead trust (CLT). You transfer assets to the irrevocable CLT and the charity receives payments from it for a term of years. When the term expires, the remaining assets are distributed to the CLT’s beneficiaries. The CLT assets can include publicly traded securities, real estate, business interests and even private company stock. Call us at (973) 346-4150 for more details.

Does your business use independent contractors? The reporting requirements for these workers differ from those for W-2 employees. For payments made in 2026, businesses generally must issue Form 1099-NEC, “Nonemployee Compensation,” to contractors paid $2,000 or more (up from $600 for 2025). The higher threshold may reduce your administrative burden because you could have fewer forms to file with the IRS. However, it doesn’t change your recordkeeping, worker classification or backup withholding responsibilities. Contact us at (973) 346-4150 to help ensure you’re prepared for the updated reporting requirements.