Accounting Blog | cavettco

Understanding the One Big Beautiful Bill Act: Key Insights on Overtime Deductions

An Overview of the New Law On July 4th, 2025, the President signed into law the One Big Beautiful Bill Act, commonly referred to as BBB. This legislation introduces several changes, particularly concerning individual deductions for overtime. In this week’s newsletter, I will discuss some of the more troubling areas I am hearing about. The law is encapsulated in the new Code Section 225 , and it is essential to begin our discussion by quoting the opening section of the new law

The Advantages of Keeping Your 401k

If you are like me, you might get tired of hearing every “investment advisor” insist that you need to roll over your 401k to an IRA. They often present this as a major mistake if you don’t. While rolling a 401k to an IRA has its advantages, these commission-driven “advisors” rarely discuss the benefits of leaving your 401k untouched. I have both a 401k and an IRA, and I appreciate the advantages of each. I plan to maintain both accounts for life because the 401k offers signif

Start the Clock Reminders for Individuals

From Bob Jennings at TaxSpeaker. Check out TaxSpeaker at taxspeaker.com 1. The 529 plan. Open a plan now for your kids, yourself, heck...

Understanding Charitable Contributions and Donor-Advised Funds in 2026

The New Charitable Deduction Floor In 2026, individuals making charitable contributions will face a new “floor” for charitable deductions of ½ of 1% (.005) of their Adjusted Gross Income (AGI). This means that for an individual with a family AGI of $200,000, a donation of $2,500 will result in a loss of the first $1,000 of the deduction. Specifically, the calculation is as follows: $200,000 x .005 = $1,000. Therefore, the individual will only qualify for a net deduction of $1