Tax Checklist for Newlyweds: What You Need to Know After Saying “I Do”

Summer is a popular season for weddings, and with all the planning that goes into starting a new life together, taxes might be the last thing on your mind. However, making a few smart tax-related updates early on can help you avoid surprises and simplify your filing process when tax season rolls around.

If you've recently tied the knot, here’s a helpful tax checklist to guide you through the essential steps every newlywed should consider.

Potential Tax Benefits for Homeowners: What You Need to Know

Owning a home can be one of life’s most rewarding milestones—but it’s also one of the biggest financial commitments. The good news? The IRS offers several tax benefits to help ease the financial burden of homeownership. If you're a homeowner, or thinking about becoming one, it's worth understanding which home-related expenses may be deductible and what programs or allowances could reduce your tax bill.

Let’s break down the key tax benefits available to homeowners.

Hobby or Business? How to Decide and What It Means for Your Taxes

Whether it’s crafting jewelry, flipping vintage finds, or teaching yoga classes on weekends, many people find themselves asking: Is this a hobby or a business? While the distinction might seem like just a matter of perspective, it has important implications—especially when tax time rolls around.

Let’s explore how to determine whether you’re running a business or simply enjoying a hobby, and why the difference matters more than you might think.

Summer is often seen as a time to relax, travel, and spend time with loved ones. But while you're enjoying the season, it's also a good time to think ahead — especially when it comes to your taxes. Several common summer activities can have implications for your tax return next year. Here’s what to keep in mind.

Getting a letter from the IRS can raise alarm bells, but more often than not, it’s a manageable situation. IRS notices are common and often straightforward to resolve—especially when you know what steps to take.

At Big Cake Tax, we want to make sure our clients feel confident handling IRS letters, even when we're not immediately available. For example, during our summer break from June 17 through July 19, we’ll be out of the office. If you receive IRS correspondence during that time (or any time), here's what to do.

At Big Cake Tax, we see it far too often: a client holds onto their U.S. home while moving abroad, thinking “I’ll sell it later, once I’m settled.” But what they don’t realize is that their new country of tax residency may tax the entire gain from that sale, even if the U.S. wouldn’t.

This mistake can cost you tens of thousands, if not more.

If you're a real estate professional living abroad, you might be wondering whether your income qualifies for the Foreign Earned Income Exclusion (FEIE) or if you'll have to pay self-employment (SE) tax on certain earnings. The answer depends on the type of real estate income you earn and how your activities are classified by the IRS. Let's break it down.

Many foreign entrepreneurs set up a U.S. single-member LLC thinking they won’t owe the IRS anything if they don’t make a profit. But even if your LLC has zero income, the IRS still expects paperwork. Miss it, and you could be facing a $25,000 penalty—per year.

One of the biggest mistakes foreign business owners make is assuming they don’t need to file Form 5472 if the LLC had no activity. That’s not how the IRS sees it.

As a business owner, self-employed individual, or even a rental property owner, it's crucial to understand your tax obligations, especially when it comes to issuing and filing 1099 forms. The IRS uses these forms to ensure that all income is reported and taxed properly. Let's break down who needs to file a 1099, when it should be filed, and the potential penalties for not meeting the filing requirements.

As the year comes to a close, many people think about giving back to their communities and finding ways to save on taxes. One smart but often overlooked way to do both is by donating stocks that have gone up in value. This method can support your favorite causes and reduce your tax bill at the same time. Let’s break it down in simple terms…

Owning rental property can be a great way to build wealth, but it also comes with tax complexities. One of the most critical tax tools for property owners is depreciation. If you’re not taking depreciation correctly—or at all—you could be leaving money on the table. Worse, the IRS will assume you’ve taken depreciation when you sell the property, which can lead to higher taxes and penalties.

Let’s explore why depreciation is essential, how it impacts your taxes, and how we can help rental property owners ensure they’re maximizing their write-offs and staying compliant.

Moving abroad mid-year introduces exciting opportunities—and potential tax savings. One significant benefit for U.S. expats and nomads alike is the Foreign Earned Income Exclusion (FEIE), which allows you to exclude a portion of your foreign-earned income from U.S. taxation. If you moved abroad mid-year and didn’t claim the FEIE, amending your prior tax returns to include the partial-year FEIE could lead to substantial refunds.