Sauder & Stoltzfus Blog

Preface: “As in all successful ventures, the foundation of a good retirement is planning.” – Earl Nightingale

History of the Retirement Plan, Part II

The following is the second in a series of blog posts on the subject of retirement plans. The first installment, which can be found here:

• • Briefly reviewed the history of government-defined retirement models in the United States,
  • Introduced the tax-deferred model, and
  • Explained the difference between Qualified plans and Individual Retirement Accounts (IRAs).

This second installment will discuss:

• • Limits to deductibility of retirement contributions, and
  • Tax treatment of non-deductible contributions.

Future posts in this series will address:

• • The Roth model.

Non-Deductible Contributions to IRAs

Within a decade after the creation of the Individual Retirement Account (IRA) in 1974, the government began having second thoughts about letting individuals deduct the entirety of their IRA contributions from taxable income. They were especially concerned with higher-income employees who already had generous qualified retirement plans through their jobs. If you or your spouse could already exclude five figures worth of your wages from your taxable income, why should you also be allowed to deduct your IRA contributions?

The Tax Reform Act of 1986 introduced income limits on deductibility for individuals who were covered by Qualified plans at work and for their spouses, even if the spouse is not covered by a qualified plan.

The dollar amount limits set forth in 1986 are increased every year or so for inflation, but the basic three-tiered system introduced in 1986 is still with us. Here are the 2025 income limits for married filers:

MFJ, neither covered by Qualified plan	MFJ, covered by Qualified plan	MFJ, not covered by Qualified plan but spouse is
All of IRA contribution is deductible with no income limit.	All of IRA contribution is deductible if combined AGI is less than $126,000	All of IRA contribution is deductible if combined AGI is less than $236,000.
	None of IRA contribution is deductible if combined AGI is more than $146,000.	None of IRA contribution is deductible if combined AGI is more than $246,000.

And for single filers:

Single, not covered by Qualified plan	Single, covered by Qualified plan
All of IRA contribution is deductible with no income limit.	All of IRA contribution is deductible if combined AGI is less than $79,000
	None of IRA contribution is deductible if combined AGI is more than $89,000.

Under this system, not all money in all IRAs is tax-deferred. Individuals who are limited from deducting their contributions in whole or in part must pay tax on those amounts in the current year. Therefore, some of the money in their IRAs going forward is after-tax money.

This is bad because it means you have to pay tax on it this year. However, it is also beneficial, as you will never have to pay any tax on it again. And the earnings from the after-tax portion of the contribution will have the same tax-deferred status as the earnings from the pre-tax portion.

An IRA is Worth More Than Just Its Deduction

People will sometimes say that they don’t want to contribute anything to an IRA that they cannot deduct on their current year tax return. But consider that if you don’t take the deduction on a contribution now, you will not have to pay tax on it when it is withdrawn. You are in effect taking the deduction after you retire instead of taking it now. Of course, if you expect to be in a lower tax bracket in retirement, the deduction now is worth more than it will be then. But if you cannot take the deduction now, you can still get it later. It is not lost forever. And by contributing the maximum today, you still get the maximum amount of earnings growing tax-deferred.

Example: You contribute $1,000 to your IRA. Of this, you are only able to deduct $500. Over the years, your IRA grows in value to $4,000. After reaching retirement age, you withdraw the $4,000. The $500 you could not deduct is withdrawn tax-free, since tax has already been paid on it. The remaining $3,500 is taxed as ordinary income upon withdrawal.

If you are in a lower tax bracket when you retire, you might feel bad that you had to pay tax on $500 of the contribution back in the day when you were in a higher tax bracket. However, the $3,000 of earnings is still all taxed at the lower rate, even though the non-deducted portion of the contribution generated half of it.

Imagine you had not contributed that $500 because you couldn’t deduct it, but had invested it instead in a taxable brokerage account. Then the $1,500 of earnings it generated would be taxed when you earned it, at the rates you were subject to at the time.

Here is a schematic view of the differences:

	IRA – deducted on contribution	IRA – not deducted	Taxable account
Contributions	Taxed on withdrawal (lower rate)	Taxed on contribution (higher rate)	Taxed on contribution (higher rate)
Earnings	Taxed on withdrawal (lower rate)	Taxed on withdrawal (lower rate)	Taxed as earned (higher rate)

Unless your time remaining to retirement is very short, the value of your IRA during retirement resulting from this year’s contribution will likely be more than twice the amount of the contribution. So unless you have reason to think you will not be in a lower tax bracket after you retire, the value of contributing to an IRA is likely greater than the value of your current year deduction. So it is likely still worth contributing the maximum each year, even if you can’t deduct all of it.

Tax Treatment of Withdrawals from Mixed-Status IRAs

If you ever make a contribution to your IRA that is not completely deductible, you are supposed to file Form 8606 every year with your tax return to track the after-tax amount in your IRA from year to year. If you do not track the after-tax portion throughout the life of the IRA, you may have to pay tax on the entirety of your withdrawals.

When you attain retirement age and make a withdrawal, you are supposed to prorate the taxable amount of the withdrawal. The calculation is likewise done on Form 8606.

Example: You contribute $1,000 to your IRA. Of this, you are only able to deduct $500. Over the years, your IRA grows in value to $4,000. After reaching retirement age, you withdraw the $4,000. You have dutifully filed Form 8606 each year of your working life so you can prove that exactly $500 has an after-tax status. The $500 you could not deduct is withdrawn tax-free. The remaining $3,500 is taxed as ordinary income upon withdrawal.

But wait! Let’s say you don’t want to withdraw the entire $4,000. Let’s say you only want to withdraw $1,000. You might think: “I will withdraw the $500 that is after-tax and $500 of the pre-tax money. That way, I will only have to pay tax on half of my withdrawal.”

Unfortunately, that is not how the IRS will see things. Any amount you withdraw from a mixed-status IRA needs to be prorated based on the ratio of total after-tax holdings to the total IRA value. Therefore, only 12.5% ($500/$4,000) (which is to say $125) of your $1,000 withdrawal is tax-free. The other $875 is taxable. You then reduce the after-tax amount of your IRA by the $125 you withdrew and carry the result to next year’s Form 8606

The taxable ratio is computed based on the total pre-tax holdings in all your IRA accounts over the total value of all your IRA accounts. This includes all SEP-IRA and SIMPLE-IRA accounts, but not qualified plans. So you cannot manipulate the taxable proportion of your withdrawals by keeping separate IRA accounts and making withdrawals from the one with the desired taxable proportion.

There are, however, several ways to increase the after-tax proportion of an IRA. One of these is the Qualified Charitable Distribution (QCD).

Strategy #1 for Increasing the After-Tax Proportion of an IRA: Introducing the QCD

The QCD is available to owners of IRAs who are at least 70 years old. They must be made to tax-deductible charitable organizations, and the transfer must be made directly from the IRA. You cannot just write a check to your favorite charity and declare it a QCD. A properly made QCD is entirely pre-tax and cannot be used as an itemized deduction. It is excluded income, which is why none of it can have an after-tax status.

A QCD can be used to fulfill a Required Minimum distribution.

Example: You have $4,000 in your IRA and you have attained retirement age. You have dutifully filed Form 8606 each year of your working life so you can prove that exactly $500 has an after-tax status. The company that administers your IRA informs you that in the current year, you must make a required minimum distribution of $500 to avoid penalties.

You direct your IRA administrator to send a QCD of $500 to your favorite charity. This distribution will not be taxable to you. Furthermore, it reduces the pre-tax part of your IRA by $500 without reducing the after-tax part. After this QCD is made, you are left with a balance of $3,500 in your IRA, $500 of which remains after tax, just as before. You have effectively increased the after-tax proportion of your IRA.

Strategy #2 for Increasing the After-Tax Proportion of an IRA: Rollover to a Qualified Plan

Another way to increase the after-tax portion of your IRA is to make a rollover to a qualified plan. A rollover is simply a transfer of funds from one account to another account with a similar tax status. Because a Qualified plan is pre-tax, all rollover amounts to a Qualified plan must also be pre-tax.

A rollover is not a distribution and cannot be used to fulfill a Required Minimum distribution.

Example: You have $4,000 in your IRA and you have attained retirement age. You have dutifully filed Form 8606 each year of your working life so you can prove that exactly $500 has an after-tax status. The company that administers your IRA informs you that in the current year, you must make a required minimum distribution of $500 to avoid penalties.

You decide that first you will roll over some of the IRA into a Qualified plan you have from a job. The rollover to the Qualified plan can only be from the pre-tax part of the IRA, so you will not be able to roll over more than $3,500. Any amount you do roll over will increase to proportion of the IRA that is after-tax.

If you roll over the entire $3,500, only the $500 of after-tax money will remain in the IRA. This can then be withdrawn to fulfill the RMD, and it is now 100% tax-free. The $3,500 that you rolled over retains its pre-tax status within the Qualified plan, so the rollover is itself a tax-free event.

If you are aware of any alternative methods to increase the after-tax portion of an IRA beyond a QCD or a rollover to a qualified plan, please contact me at bgelbart@saudercpa.com and let me know.

Preface: “The chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing, and prospering in the world.” – Calvin Coolidge, January 25, 1925

Big Tax Changes Ahead: What You Should Know About the One Big Beautiful Bill (OBBB) and Bonus Depreciation

On July 4, 2025, President Trump signed a major new tax law called the One Big Beautiful Bill Act (OBBB). This law updates the U.S. tax code in big ways. It retains some tax breaks from past laws, ends or modifies others—especially green energy incentives—and introduces new benefits for both individuals and businesses.

One of the biggest changes affects bonus depreciation, a rule that allows businesses to immediately deduct the full cost of certain types of property and equipment. Let’s break down what bonus depreciation is, what’s changed under the OBBB, and how it may benefit you or your business.

What Is Bonus Depreciation?

Bonus depreciation allows a business to write off the full cost of certain assets in the year they are placed into use, rather than spreading the deduction over several years.

You can use bonus depreciation for:

• • Equipment and machinery (like trucks, tools, and factory machines)
  • Computers and software
  • Certain plants and trees
  • Water utility property

Both new and used property may qualify, as long as it was bought and put into service after September 27, 2017.

Under the older Tax Cuts and Jobs Act (TCJA), the bonus depreciation was:

• • 100% from 2017–2022
  • Then dropping by 20% each year until it reached 0% in 2027

What Did the OBBB Change?

The OBBB reverses the phase-out and makes 100% bonus depreciation permanent—but only for property bought after January 19, 2025.

That means if you buy and start using qualified property after that date, you can deduct the full cost right away, saving money on taxes upfront.

Here’s a quick summary of changes:

Property Type	Old Rate (2025)	New OBBB Rate
Regular Property	40%	100%
Long Production Property (like aircraft)	60%	100%

Transition Option for 2025

If you buy property in your first tax year after January 19, 2025, you can choose to use the older lower rate (like 40% or 60%) instead of the new 100% rate. This might be helpful if you want to spread out deductions or if you’ve already planned your taxes using the older rates.

Special Expensing for Sound Recordings 

The OBBB also adds a new tax break for music and audio production.

If you record music or sound in the U.S., you can now deduct up to $150,000 of those costs immediately.

But there’s a catch: this benefit expires after December 31, 2025. Also, if you claim the deduction but don’t start production before that date, the IRS may take the deduction back.

Tip: To be safe, make sure your sound recording starts before the end of 2025.

What About Qualified Production Property?

The OBBB creates another bonus depreciation option for something called qualified production property—basically, certain types of commercial real estate used for manufacturing.

Here’s how it works:

• • The building must be constructed after January 19, 2025, and before January 1, 2029
  • It must be placed in service by December 31, 2030
  • You must use the building yourself (you can’t rent it out and still claim this benefit)
  • The property must be used for manufacturing, refining, or producing physical products

Offices, software development, sales buildings, and parking garages do not qualify. But a new facility used to build furniture, machine parts, or packaged food would qualify.

If a natural disaster (an “Act of God”) delays your building, you may be allowed a little more time to place it in service.

Planning Tips

Here’s what all this means in simpler terms:

1. 1. Buy smart after January 19, 2025: If you’re thinking about buying new machinery, tools, or equipment, doing it after this date could mean a 100% tax deduction up front.
   2. Think beyond equipment: If you’re in the music industry, you could deduct up to $150,000 in sound recording costs—but you must act before 2026.
   3. Build for manufacturing: If you’re planning to build a new factory or production facility, this is a golden opportunity. You can write off the entire cost much faster, boosting cash flow.
   4. Watch the deadlines: The rules are strict about when property must be built and placed in service. Missing a date can cost you thousands in tax savings.

Final Thoughts

The One Big Beautiful Bill Act is full of significant changes, and bonus depreciation is one of the most effective tools businesses can use to lower their taxes.

Whether you run a construction company, own a factory, or produce music in a studio, this law could help you save money, but only if you plan ahead.

As always, consult a tax professional before making significant financial decisions. The new rules can be complex, and a CPA can help you determine what qualifies and how to report it accurately.

Want to explore whether your equipment, sound recordings, or new building project qualifies? Contact our office today to schedule a tax planning consultation.

Preface: “Personality is how you respond on a typical day, character is how you show up on a hard day.” ― Adam M. Grant, Hidden Potential: The Science of Achieving Greater Things

Book Report: Hidden Potential by Adam Grant

In Hidden Potential: The Science of Achieving Greater Things, organizational psychologist and bestselling author Adam Grant tackles a vital question: What does it take to unlock our fullest potential? In typical Grant fashion, the book is rich with psychological research, real-world examples, and storytelling that challenges long-standing assumptions about talent, intelligence, and success.

At the heart of Grant’s argument is the belief that greatness isn’t born—it’s grown. And one of the most overlooked yet essential ingredients in this growth is character.

Skills of Character: The Core Idea

Grant defines character not as a fixed trait or moral superiority, but as “your capacity to prioritize your values over your instincts.” It’s what enables a person to do the hard thing when the easy thing feels more natural. The good news, according to Grant, is that character is not innate—it’s malleable and can be intentionally developed.

Rather than placing success solely on intelligence or natural talent, Hidden Potential makes a compelling case that it’s the internal skills of character—like the ability to seek discomfort, persevere through awkwardness, and take initiative in unfamiliar territory—that truly set high achievers apart.

Embracing Discomfort

One of the standout messages of the book is that discomfort is essential for growth. Grant states, “The best way to accelerate growth is to embrace, seek, and amplify discomfort.”

He references situations where people voluntarily put themselves in uncomfortable environments—be it athletes training at higher altitudes or students grappling with unfamiliar topics—not because it’s pleasant, but because it stretches their capacity. This aligns with the psychological concept of “desirable difficulty”, where learning is deeper and more lasting when it feels hard.

This theme comes through most vividly when Grant quotes the fictional coach Ted Lasso: “If you’re comfortable, you’re doing it wrong.” In other words, comfort may be the enemy of growth.

The Myth of Learning Styles

Another crucial insight Grant explores is the myth of learning styles. Though widely accepted in popular culture and education, the idea that people learn best in their preferred mode (visual, auditory, kinesthetic, etc.) doesn’t hold up under scientific scrutiny.

According to Grant, people may have learning preferences, but those preferences do not correlate with better outcomes. Often, they are simply a reflection of what feels most comfortable. Grant argues that learning effectively often requires doing what is uncomfortable, which circles back to his core message.

He encourages readers to challenge their assumptions about how they best absorb knowledge and to experiment with unfamiliar modes of learning. For example, a person who thinks they are a visual learner may actually retain more by teaching others or engaging in active discussion.

Procrastination: A Matter of Emotion, Not Laziness

In a clear take on procrastination, Grant challenges the common misconception that it stems from laziness or poor time management. Instead, he frames procrastination as an emotional avoidance strategy—a way to sidestep the discomfort tied to a task.

This builds on psychologist Tim Pychyl’s research that suggests we don’t procrastinate to avoid work—we do it to avoid negative emotions like anxiety, self-doubt, or boredom. The implication: if we want to stop procrastinating, we need to stop avoiding discomfort and start embracing it.

Again, this aligns with Grant’s broader argument: the ability to tolerate and even seek out discomfort is a cornerstone of character development and long-term achievement.

From Theory to Practice

Grant’s ideas are more than theoretical. Throughout the book, he backs up his points with practical strategies, stories of real people who overcame odds by building character-based skills, and guidance on how readers can do the same.

For example, he recommends:

• • Deliberate discomfort: Put yourself in situations that stretch your limits.
  • Reflective journaling: Document moments when you acted against your values—and how to improve next time.
  • Accountability partnerships: Surround yourself with people who remind you of your values when instincts push you elsewhere.

Conclusion

Hidden Potential is a powerful reminder that who we become is less about who we are now and more about how we choose to grow. Through his discussion of character as a set of learnable skills, Grant offers an optimistic and evidence-based path to self-improvement.

In a world obsessed with talent and quick wins, Grant shifts the focus to the slow, often uncomfortable work of building the inner skills that sustain true success. For students, professionals, and lifelong learners alike, this book offers a clear and deeply motivating lens through which to understand growth, challenge, and the pursuit of excellence.

The Big Beautiful Bill Act (BBB): What Taxpayers Should Know

Welcome to our latest tax blog post, where we delve into the “One Big Beautiful Bill Act” (OBBBA), signed into law on July 4, 2025. This legislation introduces significant changes to the U.S. tax code, particularly affecting individual taxpayers and businesses. Building upon the 2017 Tax Cuts and Jobs Act (TCJA), the OBBBA makes several tax provisions permanent and introduces new tax benefits. Now let’s explore the key tax provisions and their implications.

Key Tax Provisions for Individual Taxpayers:

Permanent Extension of 2017 Tax Cuts: The OBBBA solidifies the individual tax rates established under the TCJA, which were previously set to expire at the end of 2025. This includes maintaining lower marginal tax rates and increasing standard deduction amounts, providing long-term tax planning certainty for individuals.

Increased Standard Deduction: For tax years beginning after 2024, the standard deduction amounts are increased to:

• • $15,750 for single filers
  • $23,625 for heads of household
  • $31,500 for married individuals filing jointly.

These amounts will be adjusted for inflation in subsequent years, simplifying tax filing for many and potentially reducing taxable income.

Social Security Taxation: While the OBBBA does not eliminate federal income taxes on Social Security benefits, it introduces a new tax deduction specifically for seniors

A deduction amount of $6,000 for individuals aged 65 and older; $12,000 for married couples filing jointly.  Available to individuals with a modified adjusted gross income (MAGI) up to $75,000, and married couples with MAGI up to $150,000, the deduction phases out for individuals with MAGI between $75,000 and $175,000, and for married couples between $150,000 and $250,000 and applies to tax years 2025 through 2028.

This deduction is designed to reduce or eliminate the tax liability on Social Security benefits for approximately 88% of recipients, particularly benefiting middle-income seniors.

Many low-income seniors already do not pay federal income taxes on their Social Security benefits. Therefore, the new deduction is likely to have a minimal impact on this group. Seniors with incomes above the phase-out thresholds will not benefit from the new deduction and will continue to pay taxes on their Social Security benefits as they do now.

The senior tax deduction is set to expire after the 2028 tax year. Unless Congress enacts further legislation to extend or make this provision permanent, the tax treatment of Social Security benefits will revert to the previous law starting in 2029.

Tax planning considerations: First, senior taxpayers should assess their income levels to determine eligibility for the new deduction and plan accordingly to maximize tax benefits during the effective years. Secondly, given the temporary nature of the deduction, staying informed about potential legislative extensions or modifications is crucial for long-term financial planning. Finally, engaging with tax advisors can help seniors navigate the complexities of the new provisions and optimize their tax situations.

Enhanced Child Tax Credit: Beginning in tax year 2025, the child tax credit increases to $2,200 (non-refundable) per qualifying child, with the refundable portion set at $1,700. (This is reduced from the House-passed credit of $2500.) These amounts will be adjusted for inflation, beginning in 2026. The income phaseout thresholds are set at $200,000 for single filers and $400,000 for joint filers.

Temporary Increase in SALT Deduction Cap: The state and local tax (SALT) deduction cap is temporarily increased to $40,000 for taxpayers with modified adjusted gross income (MAGI) under $500,000, effective through 2029. The cap will revert to $10,000 starting in 2030.

Deductions for Tips and Overtime Pay: A temporary deduction introduced for qualified tips and overtime compensation received by individuals earning less than $150,000 annually:

• • Tips: up to $25,000 (unchanged)
  • Overtime: up to $12,500 (single) / $25,000 (MFJ)

This provision is set to expire in 2028 and aims to provide tax relief to workers in industries where tips and overtime are significant components of their income.

Auto Loan Interest Deduction: Buyers of U.S.-assembled vehicles can deduct up to $10,000 per year in auto loan interest for purchases made between 2025 and 2028. The deduction phases out for individuals earning over $100,000 or couples earning over $200,000, encouraging domestic vehicle purchases.

Introduction of “Trump Accounts” for Children: The OBBBA establishes “Trump Accounts,” allowing parents to create tax-deferred accounts for their children. Each account receives a one-time $1,000 credit per child, with annual contribution limits set at $5,000 per child. These accounts are designed to promote long-term savings for children’s future expenses.

Above-the-Line Charitable Deductions: Beginning in 2026, non-itemizing taxpayers can claim an above-the-line deduction for charitable contributions. The deduction amounts are:

1. • Up to $1,000 for single filers
   • Up to $2,000 for married couples filing jointly

This provision aims to encourage charitable giving among taxpayers who do not itemize their deductions.

The OBBBA also introduces a temporary, nonrefundable tax credit for donations to organizations that primarily grant scholarships to private or religious elementary and secondary schools. The credit is for 100% of the gift, up to the lesser of $5,000 or 10% of the taxpayer’s adjusted gross income (AGI). This provision is effective until 2029.

The above-the-line deduction provides a direct tax benefit to non-itemizers, potentially encouraging more taxpayers to make charitable contributions. This tax credit for scholarship contributions is designed to bolster funding for private and religious schools, aligning with certain educational policy objectives. While these provisions offer new opportunities for tax savings, they also add complexity to tax planning. Taxpayers should carefully document their contributions and consult with tax professionals to maximize benefits and ensure compliance.

Charitable deductions of Itemizers must meet a floor of 0.5% of AGI to qualify.

Residential Solar Tax Credit Changes:

Accelerated Phase-Out of the 30% Residential Clean Energy Credit: The OBBBA accelerates the expiration of the 30% Residential Clean Energy Credit for solar installations. Previously extended through 2034 under the IRA, this credit will now expire on December 31, 2025. Homeowners must install and place their solar systems in service by this date to qualify.

Elimination of Tax Credits for Leased Solar Systems: The legislation removes eligibility for tax credits on leased residential solar systems, beginning in 2028. This change affects homeowners who opt for leasing arrangements, a common financing method that previously allowed access to tax benefits without upfront costs. Leased and PPA solar systems remain eligible for the credit if installed and in service by December 31, 2027.

Impact on Battery Storage Incentives: Tax credits for residential battery storage systems, which were previously eligible under the IRA, are also set to expire at the end of 2025. This affects homeowners looking to enhance energy resilience through storage solutions. Commercial/grid-scale battery storage remains eligible if in service by December 31, 2027.

Commercial Solar and Clean Energy Incentives:

Revised Timelines for Investment and Production Tax Credits: Commercial solar projects must now begin construction within 60 days of the bill’s enactment and be placed in service by December 31, 2028, to qualify for the Investment Tax Credit (ITC) and Production Tax Credit (PTC). This accelerates the timeline compared to previous provisions.

Restrictions on Foreign Entities of Concern (FEOCs): The OBBBA introduces limitations on projects involving materials or components sourced from entities identified as FEOCs, particularly those from China. Projects utilizing such components may be disqualified from receiving tax credits, which could impact supply chains and project planning.

Changes to Transferability of Tax Credits: The bill restricts, but does not repeal, the ability to transfer certain clean energy tax credits. The timelines are now shorter and there are FEOC-related exclusions.

Implications and Considerations:

• • • For Homeowners:
      • To benefit from existing tax credits, homeowners should aim to complete solar installations by the end of 2025.
      • Those considering leasing options should be aware that the associated tax benefits are being eliminated after 2027.

• • • For Businesses:
      • Commercial entities planning solar projects need to adhere to the new construction and service timelines to qualify for tax incentives.
      • Supply chain assessments are crucial to ensure compliance with FEOC-related restrictions.

Key Tax Provisions for Business Taxpayers:

Qualified Business Income (QBI) Deduction Made Permanent:  The BBB tax bill makes permanent the 20% §199A deduction for eligible pass-through businesses such as sole proprietorships, partnerships, S corporations, and some trusts and estates. It also expands the SSTB phase-out band to $75,000 (single)/ $150,000 (joint), indexed.

1. • Example: If you operate an LLC generating $200,000 in qualified business income, your deduction of $40,000 is now available permanently.

Bonus Depreciation Reinstated to 100%: The BBB bill reinstates 100% bonus depreciation for qualified property acquired and placed in service between January 20, 2025, and January 1, 2030. This allows businesses to immediately expense the entire cost of new (and eligible used) equipment, technology, and machinery in the year they’re placed in service.

1. • Example: If your business purchases $500,000 in machinery in 2025, you can write off the full amount that year, rather than depreciating it over 5 to 7 years.

Immediate Expensing of Research & Experimental (R&E) Costs: The BBB bill repeals the requirement to amortize R&E expenses over 5 years—a rule that began in 2022 under prior law—and allows immediate expensing of such costs for a temporary period.

1. • Benefits for Innovative Businesses: Boosts cash flow for businesses heavily engaged in R&D, encourages innovation by reducing the after-tax cost of experimentation and development, and is a critical win for startups, software firms, biotech companies, and engineering-driven industries.

Paid Family and Medical Leave Credit Made Permanent: The Section 45S tax credit, originally temporary, is now permanent under the BBB bill. This provision allows employers to receive a credit of up to 25% of wages paid during periods of qualified family and medical leave.

1. • Why This Matters: Encourages businesses to offer or continue offering paid leave programs, helps employers compete in tight labor markets with family-friendly policies, and reduces the effective cost of paid leave benefits.

Expanded Employer-Provided Child Care Credit: The BBB bill significantly expands the tax credit for employer-sponsored childcare.

1. • Credit rate increased from 25% to 40%.
   • Maximum credit raised from $150,000 to $500,000 for general businesses, and up to $600,000 for eligible small businesses.
   • Indexed for inflation in future years.
   • Benefits: Supports working parents, especially in dual-income households, positions companies as family-focused employers, and offers significant relief in industries hit hardest by the childcare shortage.

Final Thoughts: Strategy and Compliance: The BBB Tax Bill presents business taxpayers with significant opportunities, but these opportunities also come with corresponding responsibilities.

Key Action Steps:

• • Tax Planning: Review your depreciation strategies and capital expenditure plans to align with the return of 100% bonus depreciation.
  • Entity Review: Reassess whether your business structure is optimized to benefit from the enhanced QBI deduction.
  • R&D Audit: Document all eligible research expenses carefully to ensure full expensing and IRS compliance.
  • HR Policies: Update leave and childcare policies to ensure they qualify for new and enhanced credits.
  • Long-Term Investment: Evaluate manufacturing and infrastructure projects to benefit from the new 35% credit.

As always, consult your tax advisor to help tailor a proactive strategy that aligns your business goals with the latest federal tax benefits.

Bottom Line: The BBB Tax Bill is a powerful package of incentives for American businesses. Whether you’re a startup innovator, an established manufacturer, or a small service-based S corporation, the time to plan is now.

Preface: “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States” – US Constitution art. I, §8, cl.1

History of the Retirement Plan, Part I

The following is the first in a series of blog posts on the subject of retirement plans. This first installment:

• • • Briefly reviews the history of government-defined retirement models in the United States,
    • Introduces the tax-deferred model, and
    • Explains the difference between Qualified plans and Individual Retirement Accounts (IRAs).

Future posts in this series will address:

• • • Limits to deductibility of retirement contributions,
    • Tax treatment of non-deductible contributions, and
    • The Roth model.

A Brief History of Government-Defined Retirement

Most Americans do not save enough for retirement. Over the years, the government has established several tax-advantaged financial models to encourage saving for retirement.

The oldest of these is Social Security, which was introduced in 1935 and is administered by the government itself. It is implemented by employers and by the self-employed. It is mandatory. Employers who do not remit payroll tax on behalf of their employees and self-employed people who do not pay self-employment tax will face stiff penalties. These additional taxes are collected by the government, which then pays benefits to individuals when they become eligible.

Tax-Deferred Plans

The next major governmental push to help Americans save for retirement was the Employee Retirement Income Security Act (ERISA) of 1974. This legislation introduced the tax-deferred model of retirement saving. This type of account is not run by the government, and it is not mandatory.

As the name itself suggests, the money in a tax-deferred account is not permanently spared from taxation; it is taxed later rather than sooner. Contributions to a tax-deferred account are not included in current-year taxable income. Furthermore, investment earnings on the contributions are not included in taxable income in the year they are earned. Rather, both contributions and investment earnings are taxed as a single income source when you withdraw money from the account after you retire.

For tax-deferred accounts, 59½ is the magic age at which you may begin making withdrawals without incurring penalties.

Example: You have $10,000 in taxable earned income. However, if you contribute $1,000 of it to a tax-deferred account, then only the remaining $9,000 is taxable in the current year.

Additionally, unlike a standard brokerage account, you do not need to worry about reporting portfolio income generated within your retirement account as it grows.

Example: You invest $1,000 in a brokerage account.

You buy $500 worth of government bonds and use the other $500 to buy stock in your favorite publicly traded corporation. The bonds pay $20 worth of interest and mature with $4 of original issue discount. The stock pays a $15 dividend. You then sell the stock for $600, resulting in a $100 capital gain.

You now have $139 of taxable income in the form of interest, OID income, dividends, and capital gains, which all need to be reported separately on your tax return.

OR

When you open the brokerage account, you check the box that says “IRA”. This makes the account tax-deferred. You then buy exactly the same stocks and bonds as above that yield $139 of the same types and amounts of income. However, since the account is tax-deferred, none of the earnings are taxable in the current year, and you don’t even need to report any of them.

When you retire and eventually withdraw money from the account, each withdrawal you make will be taxed as ordinary income. You will never have to report how much was earned from stocks vs. bonds, interest vs. dividends, etc.

The logic behind this legislation was that most people will be in their highest tax bracket during their working years and in a lower tax bracket during their retirement years. So it would be to their advantage to defer tax on some of their income and their portfolio earnings until after they retire. So, for many, if not most, people, this story will have a relatively happy ending.

Example: You invest $1,000 in a brokerage account. Over the course of your working years, it grows to a total value of $4,000.

You retire and cash out your retirement account. You now owe tax on the entire $4,000. During your working years, you earned a sizable salary and were consistently in the 22% tax bracket or above. Now that you are retired and living off your retirement earnings and Social Security, you are in the 10% tax bracket. So you pay less than half as much tax on the $4,000 as you would have during your working years.

Qualified Plans vs. Individual Retirement Accounts

ERISA defines two types of tax-deferred accounts, although they both offer the same type of tax advantage. The difference between them is who is responsible for establishing them and how much can be contributed to them.

Qualified plans are implemented by employers and have a relatively high contribution limit. Contribution limits are increased for inflation every year or so. For 2025, the limit for taxpayers under 50 is $23,500. This limit applies to all Qualified plans you participated in within the year.

The term “Qualified plan” may sound a bit vague, but this is the technical term for several types of plans you have undoubtedly heard of. The most familiar is probably the 401(k) plan made available by large private-sector employers. There are similar plans offered by state employers, such as 401(a) and 403(b).

Example: You worked one job early in 2025 and deferred $20,000 of wages to the Qualified plan offered by that employer. Later in the year, you get another job that offers a different qualified plan. Any deferral you make to the second plan beyond $3,500 will be considered an excess contribution and will incur penalties.

Deferrals to Qualified plans are taken out of your paycheck, so people don’t always think of them as “contributions”. And you don’t get to take a tax deduction on them, because the amount of the deferral is left out of the taxable income as reported by your employer. However, while the paperwork is slightly different, the result is the same as if you had included the amount in your taxable income and then deducted it.

Individual Retirement Plans (IRAs) are implemented by the individual taxpayer. IRAs have a much lower contribution limit than Qualified plans. For 2025, the limit for taxpayers under 50 is $7,000. This limit applies to the sum of contributions to all IRAs owned by an individual. Contributions to Qualified plans are subject to a separate limit and so are not considered towards the limit on contributions to IRAs.

Example: You have already maxed out your deferrals to the Qualified plans offered by the employers you worked for during 2025. You may still open an IRA and contribute the maximum of $7,000. Opening a second IRA will not allow you to circumvent this limit on IRA contributions. The limit applies to the total amount of contributions to all your IRAs.

When you contribute to an IRA, you are generally allowed to deduct the amount of your contribution from your taxable income. From a tax perspective, this has the same effect as excluding a deferral from your paycheck.

Another thing Qualified plans and IRAs have in common is that you cannot contribute more than your earned income for the year. So, if you only earned $20,000 during the year, you cannot contribute more than $20,000 to your qualified plan even if the limit is $23,500. Similarly, if you only earned $6,000 during the year, you cannot contribute more than $6,000 to your IRA, even if the limit is $7,000. This earned income contribution limit cannot be circumvented by non-earned income. So, if you win the lottery or make a lot of gains in the stock market, this does not increase your ability to contribute to a Qualified plan or IRA.

For IRAs, but not for Qualified plans, the limits can be combined for married couples. Both spouses can contribute to their respective IRAs up to the limit of their combined earned income. If a couple’s combined earned income is at least $14,000, they can each contribute $7,000. This is true even if only one spouse had earned income.

Required Minimum Distributions

Tax-deferred accounts can generally be inherited and have the same status for heirs as they had for the original owners. Meanwhile, the amount of money in the account continues to grow, and no tax is being paid on it. To reduce the amount of time that money can be rolled forward like this tax-free, the government requires that you begin distributing the money to yourself (and paying tax on it) when you reach a certain age.

This is known as a Required Minimum Distribution (RMD). The rules of RMDs are complex. They generally must be taken starting in the year in which you turn 73. The administrator of your Qualified plan or brokerage for your IRA should contact you before the year is over and tell you the least amount you must withdraw to avoid a penalty.

Preface: “Cell phones are so convenient that they’re an inconvenience.”— Haruki Murakami

Managing Employee Cell Phone Use: A Guide for Business Owners

In today’s mobile-centric work environment, providing employees with cell phones or compensating them for work-related mobile use is increasingly common. Employers typically choose between three primary approaches: (A) issuing company-owned phones, (B) offering monthly stipends, or (C) reimbursing employees for business-related use of their personal devices. Each method has distinct tax implications and operational considerations.

Company-Issued Phones

If the mobile phone is provided primarily for non-compensatory business reasons—such as the need to contact employees during work-related emergencies—the value of the phone is generally excluded from the employee’s income. Occasional personal use is treated as a de minimis fringe benefit and is also nontaxable. 

Benefits of company-issued phones include enhanced security as employers can enforce security protocols and manage devices centrally. Uniform hardware and software across the organization simplify IT support. Bulk purchasing and corporate plans may reduce per-unit costs.

Disadvantages include employees being reluctant to carry two devices, and managing inventory, repairs, and replacements adds to the IT workload.

Cell Phone Stipends

Stipends are generally considered nontaxable if they are provided for substantial non-compensatory business reasons and are not a substitute for wages. 

Reasons for cell phone stipends include simplicity as fixed monthly payments are easy to administer. Employees can choose their preferred devices and plans.

Reasons not to use cell phone stipends include potential tax risks. If stipends are not properly documented as business-related, they may be considered taxable income. Additionally, employers have limited oversight over device security and usage.

Reimbursement for Personal Phone Use

Reimbursements are nontaxable if they are for business use, are reasonably calculated not to exceed actual expenses, and are not a substitute for wages. 

Employers appreciate reimbursements for personal phone use for several reasons. Firstly, they only pay for actual business-related expenses, which can help contain costs. Additionally, allowing employees to use their personal devices reduces the company’s need to provide equipment.

However, there are also drawbacks to this approach. A significant concern is the administrative burden, as employees are required to submit detailed expense reports and receipts. Moreover, some employees may be hesitant to share information about their phone usage.

Best Practices for Employers

• • Establish Clear Policies: Define eligibility, usage expectations, and reimbursement procedures.
  • Document Business Necessity: Maintain records demonstrating the business reasons for providing stipends or reimbursements.
  • Monitor Compliance: Regularly review policies and practices to ensure they align with IRS guidelines.

Conclusion

Selecting the appropriate method for employee cell phone use depends on your organization’s specific needs, budget, and operational considerations. By understanding the tax implications and weighing the pros and cons of each approach, business owners can make informed decisions that support both business objectives and employee satisfaction.

Preface: “Happy is a man who can make a living by his hobby. “– George Bernard Shaw

Why Your Business Must Be More Than Just a Hobby

If you’re deducting losses from your business activities, it’s critical to ensure the IRS recognizes them as valid business expenses, not just costs from a hobby. Here’s what you need to know — and why it matters.

Under IRC Section 183, if the IRS determines your activity isn’t profit-driven, you can only deduct expenses up to the income generated by that activity, meaning losses can’t offset other income like wages or investment gains.

Since the Tax Cuts and Jobs Act (2017), miscellaneous deductions—including hobby losses—have been eliminated through 2025, making this distinction even more crucial.

A simple rule of thumb exists: if you show a profit in at least three of the last five years, the IRS assumes you’re operating with a profit motive, or two of seven years for horse-related activities.

The Weighting Factors Test

The IRS examines whether your activity resembles a business by weighing factors such as :

1. 1. Businesslike operations: Do you maintain separate books and records?
   2. Expertise: Have you studied the trade or consulted professionals?
   3. Time & effort: Is this a casual pastime or your primary focus?
   4. Profit history & potential: Have you turned a profit occasionally? Can you realistically expect future gains?
   5. Financial dependence: Do you rely on this activity for income?
   6. Personal enjoyment: Is this driven by passion or profit?

No single factor decides—it’s the overall picture that matters.

Example 1: A self-published novelist who alternates between profitable years and losses faces red flags. To preserve deductions, she must show businesslike behavior—marketing efforts, separate accounts, advertising expenses—and document a genuine plan to earn a profit.

Example 2: A hobby photographer who deducts significant equipment expenses but reports minimal income may have those deductions disallowed. If audited, the IRS can reclassify the activity as a hobby and only allow deductions up to the income earned.

Steps to demonstrate profit intent to strengthen your position:

• • • Structure your operation professionally – maintain clean financial records and business accounts.
    • Develop a formal business plan – document goals, marketing strategies, and profitability milestones.
    • Make proactive changes – adjust pricing, marketing, or operations if losses persist.
    • Invest in growth – continue professional development or hire skilled advisors.
    • Track time and expenses diligently – show you’re treating this as a serious enterprise, not a pastime

Why Does This Matter?

Legitimate business losses can offset other income. Clear documentation and professional conduct reduce IRS scrutiny. A plan demonstrates to lenders, investors, or partners that your operation is serious and sustainable.

Operating a business with a clear profit motive benefits not only your taxes but also your credibility and growth potential.

Entering into the hobby trap limits your deductions and increases audit risk. If you’ve claimed losses but your activity hasn’t consistently turned a profit, or your record-keeping could be stronger, now’s the time to tighten up. Need help documenting your profit intent and ensuring compliance? Schedule a consultation—we’re here to help you.

Preface: “I was rich, if not in money, in sunny hours and summer days.” — Henry David Thoreau

Smart Tax Planning Strategies for Summer 2025: Creative Ways to Save Your Tax Money

Summer is an ideal time to assess your financial situation and implement tax planning strategies that can lead to significant savings by year-end. By proactively managing your finances now, you can reduce your tax liability and enhance your financial well-being. Here are several creative and practical tax planning strategy ideas to consider this summer.

Maximize Retirement Contributions

Taxpayers can take advantage of increased contribution limits for retirement accounts in 2025. For 401(k) s, the contribution limit has increased to $23,500. Traditional and Roth IRAs permit you to contribute up to $7,000, with an additional $1,000 catch-up contribution if you’re 50 or older.

Contributing the maximum allowed to these accounts can reduce your taxable income and bolster your retirement savings. 

 Consider a Roth IRA Conversion

If you anticipate being in a higher tax bracket in the future, converting a Traditional IRA to a Roth IRA now can be beneficial. While you’ll pay taxes on the converted amount this year, future withdrawals from the Roth IRA will be tax-free, providing long-term tax savings. 

Utilize Health Savings Accounts (HSAs)

If you’re enrolled in a high-deductible health plan, contributing to an HSA offers triple tax benefits, including tax-free growth and tax-free withdrawals for qualified medical expenses

For 2025, the contribution limits are $4,150 for individuals and $8,300 for families, with an additional $1,000 catch-up contribution for those 55 or older. 

Invest in a 529 College Savings Plan

Contributions to a 529 plan grow tax-deferred, and withdrawals used for qualified education expenses are tax-free. Some states also offer tax deductions or credits for contributions to these plans, providing additional tax savings. 

Review and Adjust Tax Withholdings

Mid-year is an excellent time to review your W-4 form and ensure that the correct amount is being withheld from your paycheck. Adjusting your withholdings now can prevent a large tax bill or refund when you file your return. 

Implement Tax-Loss Harvesting

If you have investments in taxable accounts, consider selling underperforming assets to realize losses. These losses can offset capital gains and reduce your taxable income. Be mindful of the “wash-sale” rule, which disallows the deduction if you repurchase the same or substantially identical security within 30 days. 

Bunch Charitable Contributions

If your itemized deductions are close to the standard deduction threshold, consider “bunching” charitable donations by making two years’ worth of contributions in one year. This strategy can help you exceed the standard deduction and maximize your tax benefits. 

Conduct a Mid-Year Tax Check-Up

Review your income, deductions, and credits to date to estimate your tax liability for the year. This assessment allows you to make informed decisions, such as adjusting estimated tax payments or withholding, to avoid surprises at tax time. 

Stay Informed on Tax Law Changes

Tax laws can change, impacting deductions, credits, and tax rates. For instance, the standard deduction for 2025 has increased to $14,600 for single filers and $29,200 for married couples filing jointly. 

Consult a Tax Professional

Scheduling a meeting with a tax advisor who can provide personalized strategies tailored to your financial situation can save you money. They can help you navigate complex tax laws and identify easy-to-overlook opportunities for tax savings.

In Conclusion

Proactive tax planning during the summer can lead to significant savings and reduce stress during tax season. By implementing these strategies, you can optimize your financial situation and take control of your tax liability. Remember, consulting with a tax professional can further enhance your planning efforts and ensure compliance with current tax laws.

Preface: “Praise the Lord.” – Psalm 111:1 NIV

Psalm 111: Timeless Principles for Faithful Business Management

Psalm 111 is a profound hymn of praise, celebrating God’s works, righteousness, and enduring faithfulness. Beyond its spiritual significance, this psalm offers valuable insights for business leaders seeking to align their practices with principles of truth, stewardship, and wisdom. Let’s explore how the themes of Psalm 111 can inform and inspire effective business management.

“I will extol the Lord with all my heart in the council of the upright and in the assembly.” (Psalm 111:1)

The psalmist’s declaration emphasizes wholehearted devotion. In business, this translates to a passionate commitment to one’s mission and values. Leaders who engage fully with their purpose inspire trust and dedication among employees and stakeholders.

Application: Cultivate a company culture where the organization’s mission is clearly communicated and embraced at all levels. Encourage open discussions about values and purpose during team meetings and strategic planning sessions to foster a shared understanding of these key concepts.

Diligent Study and Appreciation of Work

 “Great are the works of the Lord; they are pondered by all who delight in them.” (Psalm 111:2)

This verse highlights the importance of reflecting on and appreciating the work at hand. For business leaders, it underscores the value of continuous learning and thoughtful analysis. Understanding the intricacies of one’s industry and operations leads to informed decision-making.

Application: Implement regular review processes to assess company performance and market trends. Encourage team members to pursue professional development opportunities and share insights gained with the broader team.

Integrity and Righteousness in Operations

“Glorious and majestic are his deeds, and his righteousness endures forever.” (Psalm 111:3)

God’s enduring righteousness serves as a model for ethical conduct. In business, maintaining the truth builds reputation and trust. Proper processes should be the foundation of all operations, from financial reporting to customer relations.

Application: Develop and enforce a comprehensive code of conduct. Provide training to ensure that all employees understand and adhere to the expected standards. Regularly analyze your business practices to ensure compliance and address any areas of process non-conformance or concern.

Compassionate Leadership and Provision

“He has caused his wonders to be remembered; the Lord is gracious and compassionate. He provides food for those who fear him; he remembers his covenant forever.” (Psalm 111:4-5)

God’s compassion and provision are central themes in this passage. Business leaders can emulate this by prioritizing employee well-being and fostering a supportive work environment, which serves as a foundational block for delivering value to customers. Recognizing and addressing the needs of employees first leads to increased morale and productivity.

Application: Provide competitive compensation. Implement ideas that support a work-life balance, such as flexible hours and adequate paid time off (PTO). Regularly solicit and implement employee feedback to enhance the workplace culture.

Commitment to Equity

“The works of his hands are faithful and just; all his precepts are trustworthy.” (Psalm 111:7)

Faithfulness and equity are hallmarks of God’s actions. In business, this translates to fairness in dealings with clients, suppliers, and employees. Transparent HR policies, core values, and clear expectations build a culture of trust and respect.

Application: Ensure hiring, promotion, and compensation practices are objective and unbiased and aligned with your business’s core values and purpose. Establish clear procedures to listen to and address employee concerns in a prompt and objective manner.

Pursuit of Wisdom Through Reverence

“The fear of the Lord is the beginning of wisdom; all who follow his precepts have good understanding.” (Psalm 111:10)

Reverence for God is the foundation of wisdom. For business leaders, humility and a willingness to seek guidance lead to better decision-making. Acknowledging one’s strengths and weaknesses as a leader and valuing objective perspectives can help you grow in effectiveness and awareness, ultimately building a more successful enterprise.

Application: Intentionally promote a culture where continuous learning is encouraged. Engage with mentors, advisors, and industry peers to gain insights. Encourage team members to share ideas and challenge assumptions constructively.

Psalm 111 presents timeless principles that, when applied to business management, foster and encourage trusted leadership, productive practices, and informed decision-making. By embracing these tenets, business leaders can build organizations that not only achieve incredible success, but also contribute positively to their communities, building Kingdom-driven businesses.

Preface: “One reason people make bad decisions is they don’t have a good decision as one of their options.” ― Dave Ramsey, EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches

Book Report: EntreLeadership 

In EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches, personal finance expert Dave Ramsey distills two decades of entrepreneurial experience into a practical guide for business owners and leaders. The book’s title is a blend of “entrepreneur” and “leadership,” symbolizing Ramsey’s belief that successful business leaders must embrace both roles. Written in Ramsey’s signature direct and motivational style, EntreLeadership provides both philosophical insights and tangible action steps for running a business with integrity, excellence, and effectiveness.

The Leader as a Servant: At the heart of EntreLeadership is Ramsey’s conviction that leadership is about serving others. He rejects top-down, authoritarian leadership in favor of a model built on trust, responsibility, and personal example. He writes, “Your team will never grow beyond your leadership, and your leadership will never grow beyond your character.”

Ramsey illustrates how leaders must act with humility, admit when they’re wrong, and prioritize the well-being of their team. This servant-leader approach is rooted in values such as honesty, discipline, and accountability—traits Ramsey has consistently championed through his career and company, Ramsey Solutions.

Culture is Everything: Ramsey emphasizes that company culture determines long-term success more than strategy or finances. He insists that business owners are the chief architects of their culture. Through anecdotes from his own business, he explains how clear expectations, consistent feedback, and employee engagement can create an environment where people are empowered to succeed.

One key quote captures this focus: “People matter. Hire people you like and want to be around. Protect your culture like it’s gold—because it is.”

Communication and Clarity: A central pillar of Ramsey’s philosophy is the need for transparent, consistent communication. He warns that confusion breeds dysfunction and that silence breeds suspicion. Leaders must overcommunicate, clarify expectations, and encourage honest feedback.

Ramsey introduces the idea of “intentionally redundant communication”—repeating key messages across various formats and forums to ensure they stick. This concept aligns with his broader commitment to eliminating ambiguity from workplace operations.

Financial Principles for Business: No Ramsey book would be complete without discussion of financial stewardship. EntreLeadership devotes several chapters to budgeting, cash flow, debt, and strategic financial planning. Ramsey strongly opposes debt in business just as he does in personal finance. He argues that borrowing robs a business of flexibility and increases risk.

He provides a blueprint for building a business emergency fund, managing accounts receivable, and setting budgets with “every dollar assigned a mission.” His advice here is conservative but battle-tested: “If you live like no one else, later you can live—and give—like no one else.”

Decision-Making and Delegation: Ramsey insists that the best leaders make decisions based on principles, not emotion or convenience. He offers a methodical approach to problem-solving, including gathering input, evaluating options, and seeking wise counsel. But once a decision is made, leaders must own it and follow through.

He also encourages delegation—not to dump unwanted tasks, but to empower others and elevate the team. As he puts it, “You have to be willing to let go of control to grow. If you’re the bottleneck, the company suffers.”

Sales and Marketing with Integrity: Ramsey advocates ethical selling by focusing on long-term relationships rather than short-term gains. He believes in creating value, listening to customer needs, and never manipulating or deceiving clients. “Selling is not convincing,” he says. “It is serving.” He also highlights the importance of branding, visibility, and reputation. A company’s values must be reflected in its advertising, customer service, and word-of-mouth.

While Ramsey’s advice is clear and well-intentioned, it leans heavily toward small business environments and may not apply as directly to large corporations or non-profits. Additionally, his rigid stance on avoiding debt, while prudent, may not reflect the nuances required in capital-intensive industries.

Conclusion: EntreLeadership is a valuable guide for entrepreneurs, managers, and aspiring leaders who want to grow their businesses with integrity and purpose. Dave Ramsey’s blend of moral clarity, operational insight, and leadership philosophy challenges readers to lead not just with strategy, but with heart and conviction. Whether you’re starting out or scaling up, this book offers timeless principles that can help you build a thriving, value-driven business.