BaillieTax, Newtown Square, Newtown Square, PA (2026)

08/04/2026

August is Make a Will Month—the perfect time to protect the people you love.

A properly prepared will gives you peace of mind and helps ensure your wishes are honored. BaillieTax now offers will preparation services to help you plan for the future with confidence.

Contact BaillieTax today to schedule your appointment. It’s never too early to protect what matters most.

07/22/2026

As college drop off season is set to begin

Protect Your College Student With the Right Legal Documents

Once your child turns 18, they are legally considered an adult. This means that, as a parent, you no longer have automatic authority to access their medical records, make healthcare decisions, or manage their financial affairs—even in the event of an emergency.

To ensure you are able to act quickly and effectively if the unexpected occurs, we recommend every family with a college student put the following documents in place:
• Health Care Power of Attorney – Authorizes you to make medical decisions on your student’s behalf if they are unable to do so.
• HIPAA Authorization – Grants you access to otherwise confidential medical information so you can stay informed about their care.
• Financial Power of Attorney – Enables you to assist with tuition, banking, and other financial matters when your student is away.

These documents provide peace of mind and ensure that, should a crisis arise, you are not left navigating unnecessary delays or legal barriers.

I can prepare these essential documents efficiently and in compliance with state law, giving both you and your student the protection you need.

📞 Contact me today to schedule a consultation.

03/09/2026

Tax Tip of the Day: Educator Expense Deduction 🍎

Teachers and eligible educators may be able to deduct up to $300 for unreimbursed classroom expenses on their tax return. Items like books, supplies, technology, and classroom materials may qualify. If both spouses are educators filing jointly, the deduction can be up to $600.

Small deductions can add up—make sure you claim what you deserve!

03/06/2026

💡 Tax Tip: Child Tax Credit vs. Credit for Other Dependents

If you have dependents, you may qualify for valuable tax credits that reduce your tax bill.

👶 Child Tax Credit (CTC):
You may receive up to $2,000 per qualifying child under age 17. Up to $1,600 may be refundable, meaning you could receive money back even if you owe little or no tax.

👨‍👩‍👧 Credit for Other Dependents (ODC):
Dependents who don’t qualify for the Child Tax Credit—such as older children (17+), college students, or elderly parents—may qualify for a $500 nonrefundable credit.

✔️ Both credits have income limits and eligibility rules.

Contact me to learn more

03/05/2026

💡 Tax Tip of the Day: Residential Energy Credit

Did you install energy-efficient upgrades to your home? You may qualify for the Residential Energy Credit!

Homeowners can claim up to 30% of the cost of qualifying improvements like solar panels, heat pumps, energy-efficient windows, doors, and insulation.

Some items have annual limits, so timing matters. Keep your receipts and manufacturer certifications.

Thinking about upgrades? Let’s make sure you maximize the credit on your tax return!

03/04/2026

Tax tip of the day
Self employed? You may deduct contributions to a SEP IRA or Solo 401(k), lowering taxable income while building retirement savings. Contributions can also reduce self-employment tax. Don’t miss this powerful write-off! Message me to see how much you could save this year.

03/03/2026

🏠 Tax Tip: Understanding Schedule E Rental Property – Benefits & Risks

If you own rental property, you report the income and expenses on Schedule E of your Form 1040. Done right, rental real estate can offer powerful tax advantages — but there are also some important risks to understand.

✅ Tax Benefits of Rental Property (Schedule E)

• Depreciation Deduction – Even if your property is increasing in value, the IRS lets you deduct a portion of the building each year (typically over 27.5 years for residential property). This often creates “paper losses.”

• Expense Deductions – You can deduct mortgage interest, property taxes, insurance, repairs, HOA fees, management fees, utilities (if paid by you), and more.

• Passive Loss Benefits – If you actively participate, you may be able to deduct up to $25,000 of rental losses against other income (subject to income limits).

• 1031 Exchange Opportunity – You may defer capital gains tax by reinvesting proceeds into another property.

• Long-Term Wealth Building – Rental income + appreciation + tax sheltering can be a powerful combination.

⚠️ Risks & Tax Traps

• Passive Loss Limitations – Losses may be limited if your income is too high and could carry forward to future years.

• Depreciation Recapture – When you sell, prior depreciation is taxed (up to 25%).

• Capital Gains Tax – Appreciation is taxable unless properly deferred.

• Material Participation Rules – Real estate professional status has strict IRS requirements.

• Cash Flow vs. Tax Loss Confusion – A property can show a tax loss but still require real cash out of pocket.

Rental real estate can be a fantastic wealth builder — but proper planning is critical to avoid surprises.

If you own rental property (or are thinking about buying one), make sure you understand both the tax advantages and the long-term implications.

📩 Message me if you’d like help reviewing your Schedule E or planning ahead for a sale.

02/28/2026

💼 Tax Tip: What is Schedule C? (For Self-Employed & Side Hustlers)

If you run a business, freelance, drive for Uber, sell on Etsy, or have a side hustle — your income is likely reported on Schedule C attached to Form 1040.

📄 What is Schedule C?

Schedule C reports:
✔️ Your business income
✔️ Your business expenses
✔️ Your net profit (or loss)

It’s essentially a profit & loss statement for your business — filed with your personal tax return.

⸻

💰 What Gets Reported as Income?

• 1099-NEC income
• 1099-K income
• Cash, checks, Venmo, PayPal, Zelle
• Any money earned from your business

Even if you don’t receive a 1099 — the income is still reportable.

⸻

🧾 What Can You Deduct?

Common business expenses include:
• Advertising & marketing
• Supplies
• Software & subscriptions
• Mileage & vehicle expenses
• Home office (if eligible)
• Insurance
• Professional fees

Ordinary and necessary expenses reduce your taxable profit.

⸻

⚠️ Important: Self-Employment Tax

If you show a profit, you’ll also owe self-employment tax (Social Security & Medicare), in addition to income tax.

Many new business owners are surprised by this — planning ahead is key.

⸻

If you have a side hustle or small business and aren’t sure what’s deductible or how much to set aside for taxes, let’s talk. Proper planning can save you money and stress at tax time.

02/28/2026

💰 Tax Tip: Popular Tax Credits You Can Claim on Your Form 1040 💰

Tax credits are powerful because they reduce your tax bill dollar-for-dollar (not just your taxable income). Here are some of the most common credits taxpayers may qualify for:

✅ Child Tax Credit (CTC) – For parents with qualifying children under age 17. This can significantly reduce your tax bill and may even be partially refundable.

✅ Earned Income Tax Credit (EITC) – Designed to help low-to-moderate income workers. Even if you don’t owe taxes, you could still receive a refund.

✅ American Opportunity Credit (AOTC) – Helps offset college costs for students in their first four years of higher education.

✅ Lifetime Learning Credit (LLC) – Covers tuition and education expenses beyond the first four years — even for graduate or professional courses.

✅ Child & Dependent Care Credit – If you paid for daycare so you could work or look for work, you may qualify.

✅ Energy Efficient Home Credits – Made upgrades like new windows, insulation, or solar panels? You may be eligible for a credit.

Tax credits can make a big difference in your refund or balance due. If you’re not sure what you qualify for, it’s worth reviewing before you file.

📩 Message me if you’d like help making sure you’re not leaving money on the table!

02/27/2026

📊 Tax Tip: Understanding Schedule D (Capital Gains & Losses)

If you sold investments during the year, there’s a good chance it gets reported on Schedule D of your Form 1040.

So what shows up there?

🔹 What is Schedule D?

Schedule D reports capital gains and losses — usually from the sale of investments or other property.

⸻

💰 Short-Term Capital Gains

These apply to assets held one year or less.

Tax Treatment:
👉 Taxed at your ordinary income tax rates (same as wages, interest, etc.)

Common Sources:
• Stocks, Mutual Funds or ETFs sold within a year
• Cryptocurrency sold within a year
• Short-term real estate flips
• Business asset sales held under 12 months

Because they’re taxed at regular income rates, short-term gains can mean a higher tax bill.

⸻

📈 Long-Term Capital Gains

These apply to assets held more than one year.

Tax Treatment:
👉 Taxed at preferential capital gains rates:
• 0%
• 15%
• 20%
(depending on your taxable income)

Some high-income taxpayers may also owe the 3.8% Net Investment Income Tax.

Common Sources:
• Stocks, ETFs, or mutual funds held over a year
• Real estate sales
• Sale of a business interest
• Inherited property (often automatically treated as long-term)

⸻

🧾 Don’t Forget:

• Capital losses can offset capital gains
• If losses exceed gains, up to $3,000 can reduce ordinary income each year
• Excess losses carry forward

Holding investments longer than one year can significantly reduce your tax rate — smart tax planning matters.

If you sold investments in 2025 and want to understand the tax impact before filing, let’s talk.

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