Christina L. Cavanaugh, CPA
and Class 5 Tax

Tax Preparation, Payroll Services, 1099 Preparation, Bookkeeping, New Business Setup and More.

For all of your Accounting and Tax Needs

Tax and Advisory Services

All tax services are now handled by Christina Cavanaugh, CPA via Fechter & Company, CPAs. Fechter & Company, CPAs offers the highest level of tax preparation and advisory services for individuals, businesses, and non-profits. Please call 916-333-5360 to reach Christina at the tax department.

https://www.fechtercpa.com/

Bookkeeping Services

Tax and Advisory Services

Our trained bookkeepers work with clients using Quickbooks Online to keep your financial records organized so that you have the information you need for ongoing and year-end reporting, analysis, and budgeting. Please call Noah at 530-626-9720 to discuss your bookkeeping needs.

Payroll Services

Tax and Advisory Services

Now Available: Audits, Reviews, and Compilations

We prepare payroll on your preferred pay schedule with either our in house software (CFS) or using Quickbooks Online Payroll for those companies using Quickbooks Online Payroll. Direct Deposit is available via NatPay Corporation. Please call Noah at 530-626-9720 to see if we are a good fit for your payroll needs.

Now Available: Audits, Reviews, and Compilations

Fechter & Company, CPAs offers all attest services, including audits, reviews, and compilations.

https://www.fechtercpa.com/

New Tax Bill - What you should know

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

The One Big, Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and with it comes many new tax provisions that may directly affect you. There are many tax provisions contained in OBBBA beyond the ones we have highlighted here.

Extension of expiring tax provisions

The center point of OBBBA is a permanent extension of most of the provisions of the Tax Cuts and Jobs Act of 2017 that apply to individual taxpayers and were scheduled to expire at the end of 2025. These provisions include, among many others:

Lower income tax brackets with the top rate at 37% instead of 39.6%;
The higher standard deduction;
The $750,000 mortgage interest limitation, with a renewed deduction for mortgage insurance premiums;
The elimination of 2% miscellaneous itemized deductions, which includes investment advisor fees, tax preparation fees, and unreimbursed employee business expenses – please note these deductions still apply for California state itemized deductions;
The increased Child Tax Credit, with modifications that increase and enhance the credit;
The increased estate and gift tax exclusion, with a bump up to $15 million on January 1, 2026.

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

Changes to deductions – For 2025-2028

There are new deductions for years 2025-2028 for taxpayers with income below the phaseout range and meeting specific requirements; these deductions are available regardless of whether you itemize or claim the standard deduction:

An additional $6,000 deduction for taxpayers age 65 and over ($12,000 for married taxpayers who are both age 65 and older) – please note this is what the Social Security Administration publicized as “No Tax on Social Security”. The taxation of Social Security has not changed, the change is this new deduction;
New Deduction for Tip Income (i.e. No Tax on Tips). OBBBA creates a new deduction of up to $25,000 for qualified tips received by an individual in an occupation which customarily and regularly receives tips during a given tax year. The deduction is allowed for both employees and independent contractors;
New Deduction for Overtime Pay (i.e No Tax on Overtime). OBBBA creates a new deduction for up to $12,500 ($25,000 in the case of a joint return) for "qualified overtime compensation. Please note that for “time and a half” overtime, this deduction only applies to the “half” portion of the overtime payment that is received;
New Deduction for Car Loan Interest. OBBBA creates a new deduction of up to $10,000 for interest paid on debt incurred after December 31, 2024 for the purchase of a qualifying new vehicle assembled in the U.S.

Even More on the New Tax Bill

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Deduction for State and Local Taxes increased for 2025-2029

The itemized deduction for state and local taxes (SALT) is temporarily increased from $10,000 to $40,000 for five years. Taxpayers who are owners of passthrough business entities and make a passthrough entity elective tax election can still use the election to maximize their SALT deductions. The enhanced cap is phased out for taxpayers with modified adjusted gross income over $500,000.

Changes to deductions – Permanent

Charitable contributions are subject to new provisions: Non-itemizers can claim a $1,000 charitable deduction ($2,000 for married taxpayers filing jointly), however charitable contribution itemized deductions are now reduced by .5% of Adjusted Gross Income (1% for Corporations);
Qualified educators will be allowed to deduct many of their unreimbursed expenses and these are no longer part of the 2% miscellaneous itemized deductions;

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Disaster relief

Taxpayers impacted by federally declared disasters in 2025 may qualify for additional tax relief.

Energy credits going away

OBBBA repeals many energy credits, including all three clean vehicle credits for vehicles acquired after September 30, 2025. Additionally, both of the energy credits available to homeowners who make certain energy efficient improvements or install solar property, home batteries, and heat pumps, among other items are no longer available after December 31, 2025.

Trump Accounts

There is a new option if you are interested in setting up a long term tax deferred savings account for your child. Up to $5,000 can be contributed annually for children under age 18; distributions are not permitted until age 18. Please note that children born between 2025 and 2028 will receive a $1,000 deposit to their Trump account from the Federal Government.

Last on the New Tax Bill - Business Changes

Business provisions

In addition to the tax provisions applicable for individual taxpayers, OBBBA contains many business provisions, including:

Permanent 100% bonus depreciation rate for assets acquired after January 19, 2025;
An increased §179 expensing limitation for assets placed in service after December 31, 2024;
Immediate expensing of research expenses with a special election to immediately deduct previously amortized research expenses;
Permanent extension of the §199A 20% qualified business income deduction for business owners, with minor modifications;
An easing of the business interest limitation rules; and
Increased 1099-NEC, 1099-MISC, and 1099-K thresholds, so these will be required for fewer independent contractors.

Please contact us if you would like to discuss any of these provisions in detail or would like to discuss planning opportunities arising from these changes. Call 916-333-5360 to schedule an appointment.

Christina L. Cavanaugh, CPA
and Class 5 Tax

Tax Preparation, Payroll Services, 1099 Preparation, Bookkeeping, New Business Setup and More.

For all of your Accounting and Tax Needs

Tax and Advisory Services

Tax and Advisory Services

Tax and Advisory Services

Bookkeeping Services

Tax and Advisory Services

Tax and Advisory Services

Payroll Services

Tax and Advisory Services

Now Available: Audits, Reviews, and Compilations

Now Available: Audits, Reviews, and Compilations

Now Available: Audits, Reviews, and Compilations

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

More on the New Tax Bill

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

Even More on the New Tax Bill

Last on the New Tax Bill - Business Changes

But Wait... Even More on the New Tax Bill

But Wait... Even More on the New Tax Bill

Last on the New Tax Bill - Business Changes

But Wait... Even More on the New Tax Bill

Last on the New Tax Bill - Business Changes

Last on the New Tax Bill - Business Changes

Last on the New Tax Bill - Business Changes

Contact Us

Form Title

Please feel free to contact us any time.

Christina L. Cavanaugh, CPA

Christina L. Cavanaugh, CPAand Class 5 Tax

Tax Preparation, Payroll Services, 1099 Preparation, Bookkeeping, New Business Setup and More.

For all of your Accounting and Tax Needs

Tax and Advisory Services

Tax and Advisory Services

Tax and Advisory Services

Bookkeeping Services

Tax and Advisory Services

Tax and Advisory Services

Payroll Services

Tax and Advisory Services

Now Available: Audits, Reviews, and Compilations

Now Available: Audits, Reviews, and Compilations

Now Available: Audits, Reviews, and Compilations

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

More on the New Tax Bill

Now Available: Audits, Reviews, and Compilations

New Tax Bill - What you should know

Even More on the New Tax Bill

Last on the New Tax Bill - Business Changes

But Wait... Even More on the New Tax Bill

But Wait... Even More on the New Tax Bill

Last on the New Tax Bill - Business Changes

But Wait... Even More on the New Tax Bill

Last on the New Tax Bill - Business Changes

Last on the New Tax Bill - Business Changes

Last on the New Tax Bill - Business Changes

Contact Us

Form Title

Please feel free to contact us any time.

Christina L. Cavanaugh, CPA

Christina L. Cavanaugh, CPA
and Class 5 Tax