Congressman Vern Buchanan (R-FL) has reintroduced the American Innovation Act (H.R. 1778), which seeks to modernize and expand the tax treatment of start-up costs for new businesses.

Under current law, entrepreneurs can deduct just $5,000 in start-up expenses in their first year of operation, with the benefit phasing out once expenses exceed $50,000. The Buchanan bill would increase that deduction to $20,000 and raise the phase-out threshold to $120,000. It also clarifies eligibility for partnerships and S corporations, ensuring the vast majority of new businesses structured as pass-throughs can fully benefit.

As S Corporation Association President Brian Reardon noted:

Nearly …

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Tariffs are a little outside our wheelhouse, but last week’s Supreme Court decision striking down the IEEPA tariffs has broader implications for the tax policy landscape. Here are some thoughts.

First, as we noted the last time tariffs were on the front page, striking down the IEEPA tariffs doesn’t really change the landscape for the next few years. As Bruce Mehlman posted over the weekend, the President has many options when it comes to tariffs, and has made clear he plans to use them:

Second, the decision is unlikely to affect …

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Last week’s circuit court decision on the meaning of “limited partner” has broad implications for S corporations in the coming tax battles. As noted in the court’s ruling:

This case turns on the meaning of “limited partner” in 26 U.S.C. § 1402(a)(13). The Tax Court interpreted “limited partner” to refer only to passive investors in a limited partnership. It therefore upheld the IRS’s upward adjustment of Sirius Solutions’s net earnings from self-employment. We disagree. A “limited partner” is a partner in a limited partnership that has limited liability. So we vacate and remand.

The court further noted:

So, to review, the pass-through …

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