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Are You Still Using the Right Business Entity for Your Taxes?

Your business structure isn’t just a legal formality — it has major tax consequences. With recent changes under the One Big Beautiful Bill Act (OBBBA), reviewing your business entity could save you thousands. 

What Changed Under OBBBA? 

The biggest headline: the 20% pass-through deduction is now permanently extended. This benefits S-Corps, partnerships, and certain LLCs — but not every business is eligible, and not all structures will benefit equally. 

Key Questions to Ask: 

  • Am I paying myself a reasonable salary as an S-Corp owner? 

  • Is a C-Corp more favorable based on my reinvestment or exit strategy? 

  • Do I have multiple income streams that could be better allocated across entities? 

  • Is my current setup optimized for California tax treatment? 

For Long Beach & SoCal Businesses 

Whether you're a solo consultant, multi-partner practice, or growing eCommerce brand, a structure review now — not during tax season — could position you for better long-term savings and risk management. 

Our team helps clients in Long Beach and Los Angeles navigate: 

  • Tax classification changes 

  • Owner distributions and salary strategy 

  • Multi-entity structuring 

  • Real estate holding company strategies 

Don’t guess. Let’s get strategic. Call 562-495-3331 or schedule a review with one of our business tax experts. 

Real Estate Tax Planning in 2025: What Investors in LA Need to Know

Smart Tax Strategies for Real Estate Investors

Real estate remains one of the most powerful paths to wealth, but it’s also one of the most complex when it comes to taxes. Whether you’re flipping, renting, or 1031 exchanging, having a strategic tax plan is essential. 

At Holmes & Associates, we work with real estate professionals throughout Los Angeles and Long Beach to ensure they’re maximizing their deductions and staying compliant. 

Key Considerations Before Year-End 

1. Bonus Depreciation is Changing 

2025 is one of your final chances to capitalize on elevated bonus depreciation. If you’ve placed assets in service this year, or plan to before year-end, you may be able to write off a substantial portion of those costs. 

Pro tip: Pairing bonus depreciation with a cost segregation study can significantly reduce your tax burden. 

2. Plan for Passive Activity Losses 

If your real estate activities are considered passive, your losses may be limited, unless you qualify as a real estate professional. Now is the time to assess your hours and documentation. 

3. Track Repairs vs. Improvements 

What you call a “repair” and what the IRS considers an “improvement” are two very different things. Misclassification is a common audit trigger and can drastically impact your deductions. 

Why Work With a Real Estate CPA in LA? 

Navigating tax law as a property investor in California comes with state-specific nuances, local property tax considerations, and multi-entity ownership strategies. Our team knows the landscape and can help you stay ahead. 

Ready to talk tax strategy? Call 562-495-3331 or book your free consult. 

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Mid-Year Tax Planning: Why Waiting Could Cost You

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It’s September — do you know where your tax strategy stands? 

If your tax plan is still on the back burner, now is the time to bring it front and center. At Holmes & Associates, CPAs, we specialize in proactive tax planning for business owners, real estate investors, and individuals throughout Long Beach and Los Angeles. The sooner we begin, the more opportunities we have to optimize your outcome. 

Why Mid-Year Matters 

By reviewing your tax position now — instead of in January or February — you can: 

  • Adjust estimated payments before Q4 

  • Identify missed deductions while there’s still time to correct them 

  • Plan major purchases or investments strategically for maximum tax benefit 

  • Avoid surprises when it’s time to file 

For Business Owners 

If you own an S-Corp, LLC, or Partnership, Q3 is ideal for re-evaluating your entity structure, retirement contributions, and owner compensation. With the pass-through deduction now permanent under the new tax law, there's even more incentive to ensure your setup is optimized. 

For Real Estate Investors 

Bonus depreciation is phasing out, but strategic moves before year-end can still lead to major savings. If you’re holding or managing property, now’s the time to: 

  • Run cost segregation studies 

  • Classify capital vs. repair expenses 

  • Project net income to reduce estimated tax stress 

Let’s Get Strategic 

Don’t settle for basic tax prep — go beyond the minimum. Holmes & Associates is a trusted Long Beach CPA firm with decades of experience helping clients reduce liability and grow smarter. 

📞 Call 562-495-3331 or schedule a consultation to build your 2025 strategy. 

 

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Best CPA for Commercial Real Estate in Los Angeles: Why Holmes & Associates is the Firm You Can Trust

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Commercial Real Estate Accounting, Commercial Real Estate CPA

Commercial real estate transactions involve large investments, complex financing structures, and detailed tax requirements. Whether you own office buildings, retail centers, multifamily properties, or industrial space, having a CPA with deep expertise in commercial real estate can make the difference between maximizing your returns and leaving money on the table. At Holmes & Associates, we specialize in helping Los Angeles commercial real estate owners and developers navigate tax strategies, improve cash flow, and optimize profitability.

Why Commercial Real Estate Owners Need a Specialized CPA

The Los Angeles commercial real estate market is highly competitive and heavily regulated. Owners and investors face issues like depreciation schedules, passive activity loss rules, 1031 exchanges, and partnership tax structures. A general accountant may not fully understand the nuances of commercial real estate taxation, but at Holmes & Associates, commercial property owners are our specialty. We know how to structure transactions and reporting to maximize deductions and long-term growth.

How We Help Commercial Real Estate Clients Succeed

At Holmes & Associates, we provide tailored tax and accounting services designed for commercial real estate investors, property management companies, and developers.

Tax Planning & Compliance

✔ Advanced tax planning strategies to minimize liabilities

✔ 1031 exchange consulting for large commercial property sales

✔ Cost segregation studies to accelerate depreciation

✔ Guidance on passive activity rules and real estate professional status

Accounting & Financial Reporting

✔ Comprehensive bookkeeping and financial reporting for commercial properties

✔ Cash flow projections and profitability analysis

✔ Partnership accounting and multi-entity consolidations

✔ QuickBooks and accounting system setup for commercial portfolios

Entity Structuring & Advisory

✔ Choosing the right structure (LLC, S-Corp, Partnership) for tax advantages

✔ Real estate syndication and joint venture tax considerations

✔ Partnership agreements and compliance support

Strategic Advisory for Commercial Investments

✔ ROI and IRR analysis for acquisitions and developments

✔ Tax planning for financing, refinancing, and dispositions

✔ Advisory for REITs, developers, and commercial real estate funds

What Sets Holmes & Associates Apart?

With more than 30 years of experience in Los Angeles, Holmes & Associates has a proven track record of helping commercial real estate owners and investors thrive. Our proactive approach ensures you’re not only compliant with tax laws but also strategically positioned for growth.

We offer a Free Tax Analysis and Consultation, where our team reviews your returns, books, and financials to uncover opportunities for tax savings and stronger profitability.

Schedule a Free Consultation Today

If you’re looking for the best CPA for commercial real estate in Los Angeles, Holmes & Associates is here to help. From tax strategies to financial planning, we partner with you to protect your investments and maximize your returns.

Call us at 562.495.3331 to schedule your free tax consultation today.

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Estate Planning for Business Owners – What to Know Before Year-End

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Estate planning isn’t only about passing on personal wealth. It’s a critical part of protecting your business legacy. As a business owner, your estate plan should answer one key question: What happens to the company if something happens to you?  

Here’s what to review before year-end:  

Create or Update Your Will  
Ensure your will addresses both personal and business assets. If you don’t have one, your estate, including your business, may be tied up in probate for months or even years.  

Set Up a Succession Plan  
Whether you want your children to take over or your partners to buy you out, a clear succession plan helps prevent disputes and ensures a smooth transition.  

Review Your Operating Agreement  
Does your current operating agreement cover ownership transfers in the event of death or incapacity? If not, it’s time for an update.  

Establish or Review Buy-Sell Agreements  
A buy-sell agreement outlines how business shares are sold or transferred, who has the right to buy them, and how they're valued. This protects both your family and your co-owners.  

Explore Estate Tax Strategies  
Business owners often exceed estate tax thresholds. Gifting shares, creating trusts, or using valuation discounts are just a few tools to explore with your CPA and estate attorney.  

An estate plan isn't static, it should evolve as your business grows. Take time before year-end to align your financial goals with your legacy. Doing so ensures your business continues in the hands you trust. 

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Is It Time to Upgrade Your Accounting System? Signs to Look For

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Your accounting system is the backbone of your financial operations. But as your business evolves, what once worked may now be holding you back. An outdated system can lead to inefficiencies, missed tax deductions, and even compliance risks.

So how do you know when it’s time to make a change? Here are some red flags:

Manual Data Entry Dominates Your Workflow

If your team is still spending hours re-entering data from one platform to another, you're wasting time that could be spent on growth and strategy. Manual processes also introduce human error—one of the biggest causes of financial discrepancies.

Lack of Integration with Key Tools

Can your accounting software integrate seamlessly with your CRM, payroll system, or inventory management tools? If not, you're working in silos. Integrated systems boost accuracy, reduce time spent toggling between programs, and help you get a clearer picture of your financials.

Limited Reporting & Dashboards

Your accounting platform should provide actionable insights at a glance. If you're stuck exporting spreadsheets and building custom reports every month, it’s a sign your system isn’t keeping up.

Your Business Has Outgrown the Software

Small-business tools don’t always scale well. If your revenue has increased or you’ve added locations, services, or employees, your accounting needs have likely become more complex.

Modern, cloud-based systems like QuickBooks Online Advanced, Xero, or NetSuite offer features like automation, role-based access, real-time dashboards, mobile apps, and integrations with hundreds of business tools. For manufacturers, construction firms, or real estate investors, these platforms can support job costing, inventory, and depreciation schedules with ease.

The Bottom Line: Upgrading your accounting system is an investment in accuracy, efficiency, and future growth. If you're unsure what platform is best for your business, consult with your CPA to evaluate your current setup and explore tailored options.

Book a complimentary consultation today at 562-495-3331 or visit us at Holmes & Associates.

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New Deductions, New Red Tape: What to Watch Out for Under the OBBBA

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While the One Big Beautiful Bill Act comes with generous tax breaks, it also adds layers of complexity that could trip up even experienced taxpayers. Here's what you need to know about the less-publicized provisions, and how to stay compliant.

1. Deductions for Overtime, Tips & Auto Loans

Trump’s campaign promise of “no tax on tips” is partially realized, at least for now.

New deductions include:

  • Tip and overtime income (with income-based phaseouts)

  • Auto loan interest

  • An increased standard deduction for seniors (2025–2028)

These perks sound good, but they come with income thresholds and expiration dates, meaning timing and eligibility are everything.

2. Complicated New Savings Vehicles: “Trump Accounts”

Trump Accounts are new, tax-advantaged savings accounts that:

  • Include a $1,000 baby bonus for children born in the next 4 years

  • Allow $5,000/year contributions, growing tax-free until age 18

  • Convert to traditional IRAs upon adulthood

They may be useful, but the rules are layered. We recommend evaluating these in the context of your current retirement or education savings strategies.

3. Shrinking (and Confusing) Clean Energy Credits

Many of the clean energy tax credits introduced under the Inflation Reduction Act are being phased out or restricted, especially for companies tied to “foreign entities of concern.”

Planning a solar project or EV purchase? Don’t assume your credits still apply, reach out for an updated review.

4. Watch for Medicaid & SNAP Changes (and Their Financial Ripple Effects)

Though not directly related to business taxes, the bill includes major cuts to federal benefits like Medicaid and SNAP and imposes stricter eligibility requirements. For individuals relying on these programs or employers in healthcare sectors, the ripple effects may be significant.

5. Strategy Beats Surprises

Whether you're navigating a new deduction, managing charitable contributions under tighter rules, or exploring Trump Accounts, the key takeaway is this:

The tax code just got more generous and more confusing at the same time.

Let’s cut through the noise and build a plan that fits.

Call us at 562-495-3331 or visit Holmes & Associates to schedule your mid-year review.

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What the One Big Beautiful Bill Act Means for Your Taxes in 2025 and Beyond

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The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, 2025—and like any massive piece of legislation, it comes with both opportunities and complications for business owners and individuals. At Holmes & Associates, we’re here to break it down into actionable steps, so you know what changes matter to you.

1. Big Wins for Business Owners

Permanent 100% Bonus Depreciation & R&D Expensing

Businesses can now permanently deduct 100% of qualifying equipment purchases and domestic R&D expenses in the year they’re placed in service. This eliminates a tax penalty and gives businesses confidence to invest.

Pro Tip: Consider pairing this with a cost segregation study if you own commercial real estate.

Section 179 Expensing and Interest Deduction Improvements

Small business-friendly provisions—like the expanded Section 179 expensing rules and the less restrictive TCJA interest deduction cap—are now permanent.

2. Entity Structure Still Matters

Pass-Through Deduction Permanently Extended

The 20% deduction for pass-through income (such as from S-Corps and partnerships) has been made permanent. While controversial for creating unequal treatment compared to C-Corps, it means now’s a good time to revisit your business entity structure and confirm it still aligns with your goals.

3. SALT Cap Raised—Temporarily

From 2025–2029, the SALT (State and Local Tax) deduction cap increases from $10,000 to $40,000 for households making under $500,000.

It reverts to $10,000 after 2029—so timing is everything if you're in a high-tax state like California.

4. Estate and Gift Tax Changes Ahead

In 2026, the estate and gift tax exemption will be set at $15 million (adjusted for inflation). Now is the time to review your estate plan, especially if you're close to that threshold or considering significant asset transfers in the coming years.

5. Time to Book a Mid-Year Strategy Session

With OBBBA now official and tax season in the rearview mirror, July is the perfect time to:

  • Adjust estimated tax payments

  • Review entity selection

  • Maximize deductions under the new rules

  • Begin 2026 planning with updated exemption thresholds in mind

Let’s talk about what these changes mean for your specific situation.

Book a complimentary consultation today at 562-495-3331 or visit us at Holmes & Associates.