Profound Financial, PLLC

Are rental real estate activities eligible for the qualified business income (QBI) deduction? The answer is a distinct “maybe.” This tax break allows eligible sole proprietors and owners of “pass-through” entities to deduct up to 20% of QBI. Pass-through entities include partnerships, S corporations and most limited liability companies. However, income from a rental real estate activity is QBI only if the activity rises to the level of a trade or business or meets an IRS safe harbor, which generally requires separate records, sufficient rental services and specific documentation. Various limits and other restrictions also apply. Call us at (623) 566-9821 to learn more.

Sole Proprietorship. LLC. Corporation.

Each structure has different tax implications — and choosing the wrong one could mean paying more than necessary.

At Profound Financial, PLLC we help small business owners understand which structure fits their goals and their bottom line.

✅ The right structure today. A stronger tomorrow.

This is a conversation worth having before year-end.

📞 (623) 566-9821
📅 Book your consultation: https://calendly.com/schedule-consultation-profoundfinancial

Trying to catch up? Employees age 50 and older are allowed to make extra, “catch-up” contributions to their 401(k) and similar plans. In 2026, you can generally contribute an additional $8,000, for an annual maximum of $32,500. And, if you turn age 60, 61, 62 or 63 this year, you can contribute up to $35,750! However, there’s a catch. Recent tax law changes require certain high earners to invest catch-up contributions in a post-tax Roth account, such as a Roth 401(k). This may require additional planning. Call us at (623) 566-9821 to discuss how to reach your retirement savings goals.

Beginning July 4, 2026, parents, grandparents and others can contribute to Trump Accounts (TAs) for the benefit of eligible children. Certain children born 2025–2028 may also qualify for a $1,000 starter deposit from the federal government. TA contributions are generally limited to $5,000 per year (not counting the government deposit) and aren’t tax deductible. But earnings grow tax-deferred. At age 18, the TA will become a traditional IRA. For education goals, options like 529 plans may be better, because qualified education withdrawals are tax-free. Contact us at (623) 566-9821 to discuss what fits your family.