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We had a great outcome at our March Coffee Connections meeting hosted at Woody's Classic Grill. Many members and business owners were in attendance. Esmeralda Vasquez of E. Vasquez & Associates provided an update on important information that applies to filing your taxes for 2024. Below is the info provided: 1099-K Reporting Threshold Changes 2024: $5,000 2025: $2,500 2026: $600 SECURE Act 2.0 & Self-Employment Retirement Plans SEP (Simplified Employee Pension) Plans Maximum contribution: 25% of employee compensation or $69,000 (2024) SIMPLE (Savings Incentive Match Plan for Employees) Contribution Limits: 2024: $16,000 (for those 50+) 2025: $16,500 (for those 50+) 401(k) Plans Employee Deferral Limits: 2024: $23,000 2025: $23,500 Catch-up Contribution Limits: Ages 50-59: $7,500 (2024 & 2025) Ages 60-63: $11,250 (2025) Schedule C Update On Schedule C (Profit or Loss from Business), Box "B" , ensure you are using the current IRS business code instead of 999999 , as the IRS is now enforcing proper classification. Business Meal & Expense Deductions (2024) The 100% deduction for meals has expired, and deductions have reverted to pre-2021 levels: Business Meals (Restaurant): 50% Business Travel Meals: 50% Employer-Provided Breakroom Snacks: 50% Entertainment Expenses: 0% Meals During Entertainment: 50% Personal Meals: 0% Company Picnics & Holiday Parties: 100% Publicly Available Food & Drink: 100% Travel Meals: Must be incurred at least 15 miles away from your primary business location. Bonus Depreciation Phaseout 2022: 100% 2023: 80% 2024: 60% 2025: 40% 2026: 20% 2027: 0% Eligible property includes: Machinery, computers, equipment, furniture Depreciable property with a recovery period of 20 years or less Certain improvements to business property Both new and used property (original use not required) Tax Filing Deadlines for 2024 Returns (Filed in 2025) Individual Tax Returns (Forms 1040 & 1040NR) Original Deadline: April 15, 2025 Extended Deadline: October 15, 2025 Partnerships (Form 1065) Original Deadline: March 17, 2025 Extended Deadline: September 15, 2025 Trust & Estate Tax Returns (Form 1041) Original Deadline: April 15, 2025 Extended Deadline: October 3, 2025 C-Corporation Tax Returns (Form 1120) Original Deadline: April 15, 2025 Extended Deadline: October 15, 2025 S-Corporation Tax Returns (Form 1120S) Original Deadline: March 17, 2025 Extended Deadline: September 16, 2025 Foreign Bank Account Reports (FinCEN Form 114) Original Deadline: April 15, 2025 Extended Deadline: October 15, 2025 20% Deduction for Pass-through Qualified Businesses (Section 199A) Eligible businesses include: Sole Proprietorships, Partnerships, S-Corps, Real Estate Investment Trusts (REITs), Qualified Cooperatives Deduction is available whether you itemize or take the standard deduction Cannot exceed 20% of taxable income over net capital gains Specified Service Trades or Businesses (SSTBs) (e.g., health, law, consulting, finance, athletics, accounting) have limitations on QBI deductions FinCEN Beneficial Ownership Reporting (BOI) – Mandate Suspended Business Mileage Deduction for 2024 IRS Standard Mileage Rate: TBD (pending IRS update) Ensure all business-related miles are properly tracked for deduction purposes Additionally, if you’d like to share with the Chamber, I will be participating in an exclusive panel discussion next week: Exclusive Panel Discussion: The Power of Goal-Setting & Bookkeeping Date: Thursday, March 13, 2025 Time: 5:00 PM - 6:30 PM PT Location: Loma Linda Branch, 25701 Barton Road, Loma Linda, CA 92354 Featured Speakers: Jonathan Escobar (Community Manager) Esmeralda Vasquez (Guest Expert, E. Vasquez & Associates) What You’ll Learn: How bookkeeping can streamline your business operations Strategies to improve cash flow management The power of goal-setting for long-term success Limited Seating – RSVP by March 12: RSVP Here If you have any questions or are looking for a tax person, don't hesitate to reach out to Esmeralda.