Controller vs. CFO: Key Differences for Michigan Businesses

For Michigan businesses aiming to grow strategically while keeping financial operations seamless, understanding the difference between a Controller and a Chief Financial Officer (CFO) is essential. At Persitz CPA, we leverage over 30 years of experience helping companies in Detroit, Grand Rapids, Lansing, Ann Arbor, and across Michigan achieve operational efficiency and long-term financial success.

Table of Contents

• Defining the Roles: Controller vs. CFO
• 6 Key Differences Between a Controller and a CFO
• When Michigan Businesses Need a Controller or CFO
• How Persitz CPA Supports Michigan Businesses
• Risks of Not Having the Right Financial Leadership
• Conclusion & Next Steps
• FAQ

Defining the Roles: Controller vs. CFO

Controller

Controllers are the backbone of accurate financial reporting and operational compliance. Their core responsibilities include:

• Managing ledgers and bookkeeping
• Overseeing payroll and tax compliance
• Processing accounts receivable and payable
• Implementing internal controls
• Providing reliable financial data for day-to-day decisions

Controllers typically supervise accounting teams in Michigan businesses, from local manufacturers to professional services, ensuring compliance with GAAP standards.

CFO

The CFO is a strategic leader who guides the company’s financial direction. Key responsibilities include:

• Strategic financial planning and forecasting
• Capital allocation and cash flow optimization
• Risk management and mitigation
• Engaging with investors, banks, and boards
• Translating complex data into actionable growth strategies

For Michigan businesses expanding in Detroit, Grand Rapids, Lansing, or Ann Arbor, a CFO provides insights for funding, acquisitions, and scaling operations.

6 Key Differences Between a Controller and a CFO

1. Expertise Focus:

    

   • Controller: Specialized in accounting accuracy, compliance, and internal controls.
   • CFO: Broader financial strategy, growth planning, and capital management.
2. Operational vs. Strategic Orientation:

    

   • Controller: Handles daily accounting operations.
   • CFO: Focuses on long-term strategy and executive decision-making.
3. Internal vs. External Engagement:

    

   • Controller: Works mainly with internal teams.
   • CFO: Engages with investors, lenders, and partners externally.
4. Perspective on Data:

    

   • Controller: Focuses on historical data and past performance.
   • CFO: Uses historical and projected data to guide future growth.
5. Leadership & Decision-Making:

    

   • Controller: Leads accounting staff and operational processes.
   • CFO: Provides executive-level guidance aligned with business goals.
6. Visibility & Stakeholder Role:

    

   • Controller: Supports internal operations.
   • CFO: Represents the company externally to enhance credibility.

When Michigan Businesses Need a Controller or CFO

Smaller or early-stage Michigan businesses may find a Controller sufficient for accurate financial oversight. However, as businesses scale—expanding in Detroit, opening offices in Grand Rapids, or serving clients across the Midwest—the strategic insight of a CFO becomes critical for:

• Managing growth and cash flow
• Making informed funding and investment decisions
• Aligning financial strategy with long-term objectives

Persitz CPA offers flexible solutions, including fractional CFO services and Controller-level support, allowing businesses to access executive expertise without the cost of full-time hires.

How Persitz CPA Supports Michigan Businesses

Controller Services

• Comprehensive bookkeeping and ledger management
• Payroll administration and compliance
• Internal controls and month-end close processes
• QuickBooks setup, optimization, and staff training

CFO Services

• Strategic financial planning and forecasting
• Cash flow optimization and capital allocation guidance
• Risk assessment and mitigation strategies
• Advisory support for funding, investments, and board reporting

Tailored Solutions

By integrating advanced accounting technologies and streamlining workflows, Persitz CPA helps Michigan business owners focus on growth while ensuring financial integrity and compliance.

Risks of Not Having the Right Financial Leadership

Without a Controller:

• Increased risk of errors in financial reporting
• Non-compliance with Michigan tax laws
• Inefficient accounting workflows

Without a CFO (when needed):

• Missed opportunities for strategic growth
• Poor capital management and funding decisions
• Limited actionable insights for leadership

Conclusion & Next Steps

Choosing between a Controller and CFO is a strategic decision that can define your business’s growth trajectory. Whether your Michigan business needs precise accounting oversight, executive-level financial leadership, or a combination of both, Persitz CPA delivers tailored solutions to optimize performance, reduce risk, and support long-term success.

Ready to optimize your financial strategy? Contact Persitz CPA today for a consultation and find the right financial leadership for your business.

FAQ

1. What is the main difference between a Controller and a CFO?

A Controller focuses on accurate accounting and internal processes, while a CFO provides strategic financial leadership for long-term growth.

2. When should a business hire a CFO?

Businesses scaling operations, seeking funding, or planning expansion should consider hiring a CFO to guide strategic decisions.

3. Can one person serve as both Controller and CFO?

Yes, in smaller businesses, one person may perform both roles. Larger companies typically separate these roles for operational efficiency and strategic focus.

4. What industries in Michigan benefit most from a CFO?

Industries experiencing growth, such as manufacturing, professional services, and tech startups, benefit significantly from CFO guidance.

5. How can Persitz CPA help my business?

Persitz CPA provides both Controller and CFO services, helping Michigan businesses maintain compliance, optimize cash flow, and plan for growth.

Should I Do a Roth Conversion? Here’s What Taxpayers Should Know

If you’ve been researching retirement strategies lately, you’ve probably seen a lot of talk about Roth conversions—sometimes called “backdoor Roth IRAs.” They’re often promoted as the ultimate solution for tax-free retirement income.

But as a CPA, I can tell you from experience: Roth conversions are not a one-size-fits-all solution. They can be an excellent tool for some people and a costly mistake for others. Whether it makes sense for you depends on such things as (but not limited to) your income, tax bracket, goals for retirement, and your family’s future plans.

Let’s take a closer look at what a Roth conversion really is, when it might make sense, and when you might want to hold off.

What Exactly Is a Roth Conversion?

A Roth conversion is when you move money from retirement plans such as a Traditional IRA or 401(k) into a Roth IRA. When you do this, you pay income taxes now on the amount you convert.

The advantage: Once your money is in a Roth IRA, it grows tax-free—and you won’t owe taxes when you withdraw it in retirement. That’s what makes Roth accounts so appealing.

The tradeoff is timing: you’re choosing to pay taxes now instead of later. For many families, especially those nearing retirement or recently retired, deciding when (or whether) to convert can be a crucial part of tax planning.

Why Roth Conversions Are Getting So Much Attention

There are a few reasons Roth conversions are such a popular topic right now:

• Federal tax rates are historically low through 2025 due to the 2017 Tax Cuts and Jobs Act. Many advisors believe tax rates will rise in the future.
• Required Minimum Distributions (RMDs) start at age 73 or 75, forcing you to take taxable withdrawals. A Roth IRA doesn’t have RMDs.
• Market fluctuations create opportunities to convert when portfolio values are lower—meaning you pay less tax on the conversion.

But just because you can do a Roth conversion doesn’t always mean you should.

The First Question: What’s Your Tax Bracket—Now and Later?

When you convert, you’re taking a taxable event today in exchange for tax-free income later. So if you expect to be in a higher tax bracket in retirement, a conversion may save you money long-term.

However, if you expect your income—and therefore your tax rate—to drop in retirement, converting now might mean paying more tax than you would otherwise.

Example 1: A Conversion Makes Sense

Sarah, a 50-year-old engineer, expects her income to grow substantially before she retires. She’s in the 22% tax bracket now but expects to be in the 32% bracket later, based on her company pension and investment income. Converting a portion of her IRA now makes sense—she locks in a lower tax rate today and enjoys tax-free growth in the future.

Example 2: A Conversion May Not Help

Tom, a 62-year-old, is retiring next year and expects his income to drop significantly once he stops working. He’s currently in the 24% bracket but expects to be in the 12% bracket after retirement. For him, waiting to withdraw funds later could mean paying less in taxes overall.

The takeaway: Your future tax rate matters just as much as your current one.

Can You Pay the Taxes Without Touching the IRA?

This is one of the biggest make-or-break factors.

When you convert, the amount you transfer to a Roth counts as taxable income. Ideally, you want to pay the taxes using money outside your retirement account—for example, from savings or a brokerage account.

Why? Because if you use funds from your IRA or 401(k) to pay the tax bill, you’re reducing the amount that can grow tax-free in your Roth. You’re also potentially triggering early withdrawal penalties if you’re under 59½.

I often tell clients: A Roth conversion makes sense if you have the cash available to pay the tax bill upfront.

Time Horizon: The Longer, the Better

A Roth conversion typically works best when you can keep it in the Roth for at least 10 years.

If you’re 35 or 45, converting now gives your money decades of tax-free compounding. But even if you’re in your 50s or 60s, it can still make sense if you don’t need the money immediately.

Remember the five-year rule: any funds you convert must remain in your Roth IRA for at least five years before you can withdraw them penalty-free (unless you’re over 59½). That rule applies separately to each conversion.

Roth IRAs and Required Minimum Distributions (RMDs)

One of the biggest benefits of a Roth IRA is that you’re not forced to withdraw money in retirement.

Traditional IRAs and 401(k)s require you to start taking withdrawals—called RMDs—once you reach age 73 (or 75 for some younger retirees). These withdrawals increase your taxable income and can affect Medicare premiums.

A Roth IRA, on the other hand, has no RMDs during your lifetime. That gives you more flexibility and control over your income in retirement.

Estate and Legacy Planning Benefits

If leaving a financial legacy is part of your plan, Roth IRAs are one of the most tax-efficient tools available.

Your heirs must still withdraw the funds within 10 years of inheriting, but unlike traditional IRAs, those withdrawals are completely tax-free.

That can make a big difference for children or grandchildren who may already be in higher tax brackets.

Market Timing: When You Convert Matters

If the market takes a dip, that may actually be a great time to do a conversion. You’ll pay taxes based on the lower value of your investments, and all future growth will happen inside your tax-free Roth.

For example, if your traditional IRA is worth $200,000 today but drops to $160,000 during a market correction, converting now means paying tax on $160,000 instead of $200,000. Then, when it rebounds, that growth is tax-free.

Watch Out for Hidden Tax Effects

Roth conversions can impact more than just your income taxes. A large conversion could also:

• Push you into a higher federal tax bracket
• Increase your Medicare premiums (IRMAA)
• Reduce eligibility for certain tax credits or deductions
• Affect ACA health insurance subsidies if you’re under 65
• Make more of your Social Security taxable

Before doing any conversion—especially a large one—it’s important to look at your entire financial picture, not just your IRA balance. That’s where working with a CPA can make a big difference.

You Don’t Have to Convert All at Once

Many people assume they need to convert their entire IRA or 401(k) in one year—but that’s often not ideal.

A smarter strategy may be to do partial conversions over several years, often referred to as “filling up your tax bracket.”

For instance, if you’re in the 12% tax bracket and have $20,000 of room before you’d move into the 22% bracket, you could convert $20,000 now, pay taxes at the lower rate, and reassess next year.

This approach helps control your tax exposure and smooths the impact over time—especially useful for retirees in their early retirement years.

When a Roth Conversion Makes the Most Sense

From my experience working with clients, a Roth conversion usually makes sense if you:

• Expect higher tax rates in the future
• Can pay the tax bill with outside funds
• Have years of growth ahead before retirement
• Want to avoid RMDs later
• Hope to leave tax-free money to your heirs

When You Might Want to Skip It

You may want to hold off or avoid a conversion if:

• You expect to be in a lower tax bracket later
• You don’t have cash available to pay the taxes now
• You’ll need the converted funds within a few years
• You’re close to triggering higher Medicare or ACA costs
• More of your Social Security may be taxable

There’s no universal answer—what’s right for your neighbor or coworker may not be right for you.

Final Thoughts: It’s Not “All or Nothing”

I don’t believe in blanket financial advice—and that includes Roth conversions. They can be an excellent tool, but only when used thoughtfully, with a clear understanding of your taxes, income, and long-term goals.

The best way to decide is to run the numbers. Every year I help clients determine whether a Roth conversion makes sense for them. Sometimes the answer is “yes, perhaps in stages.” Other times, the math says, “not at all, or not yet.”

Either way, you’ll make a better-informed decision—and that’s what good financial planning is all about.

Let’s Talk About Your Situation

If you’re wondering whether a Roth conversion is right for you, I’d love to help you evaluate it. Together, we can:

• Compare your current and future tax brackets
• Estimate the tax cost of conversion
• Create a phased conversion strategy (if appropriate)
• Review how it fits into your retirement and estate plan

Call me at 248-909-2880 or email Mark@persitzcpa.com to schedule a meeting and discuss your plan and goals.

Let’s make sure your retirement dollars work as efficiently as possible—for you and your family.

Tax season is stressful for many small business owners. Between managing daily operations, serving clients, and growing your business, navigating complex tax laws can feel overwhelming. While handling taxes yourself may seem like a cost-saving solution, it often leads to mistakes, missed deductions, and even audit risks. The good news? Outsourcing your taxes to a professional CPA can save time, reduce stress, and even increase your financial savings.

The Hidden Costs of DIY Taxes

Trying to manage taxes on your own can lead to unexpected and expensive consequences. The most common pitfalls include:

• Costly Mistakes: Tax codes change frequently. Even a small error can result in penalties, fines, or audits.
• Missed Deductions: Without expert guidance, valuable deductions and credits may be overlooked, costing you thousands of dollars.
• Time Drain: Every hour spent on taxes is an hour taken away from growing your business or serving your customers.
• Increased Audit Risk: Poor records and incorrect filings increase your chances of being flagged for an audit—a process that is both time-consuming and stressful.

DIY tax preparation may seem like saving money upfront, but the hidden costs can far outweigh the savings.

If you work in a tipped profession—whether you’re serving drinks in downtown Ann Arbor, styling hair in a Brighton salon, or delivering pizza in Lansing—there’s some promising news on the tax front. A brand-new federal deduction is on the way that could significantly reduce your taxable income beginning in 2025.

It’s being widely labeled as the “No Tax on Tips” law—but as a CPA serving hardworking individuals across Michigan, I want to help you understand what this really means. Spoiler: it doesn’t mean all your tips are tax-free. But for many Michiganders who earn a living in tip-heavy industries, it’s a welcome opportunity to lower your tax bill legally.

Let’s dive into the details so you can see how this deduction might benefit you or someone in your household.

What Is the “No Tax on Tips” Deduction?

Starting in tax year 2025, and continuing through 2028, eligible workers in tipped occupations may deduct up to $25,000 in qualified tips per year from their taxable income.

That’s right—tips you receive for doing your job may now reduce your federal tax liability, if they meet certain qualifications.

This new deduction is available to both:

• W-2 employees (like servers, bartenders, stylists)

• Self-employed individuals (like independent massage therapists, mobile groomers, and freelance artists)

For many Michigan residents in the service industry, this could mean thousands of dollars in tax savings every year—but only if you follow the rules and report your tips properly.

What Tips Count as “Qualified”?

Not all tips are treated equally under this new law. For your tips to count toward the deduction, they must be:

1. Voluntary – This means the tip must be given freely by the customer. Automatic gratuities, service charges, or mandatory fees are generally not included.

2. Properly reported – You must have official documentation of the tips, such as:

   • Reported on your W-2 from your employer

   • Received and reported on a 1099 (for self-employed workers)

   • Or another IRS-recognized official statement

Cash tips, card tips, and shared tips (via tip pooling) can all be included—as long as they’re reported correctly and included in your income.

This is an important distinction. If you’re working under the table, or if your tips aren’t being recorded or tracked in your tax filings, you won’t qualify for the deduction. As your CPA, I always recommend full compliance to avoid trouble with the IRS and to take advantage of deductions like this one.

What Kind of Jobs Qualify in Michigan?

The IRS is expected to release a formal list of qualifying occupations by October 2, 2025, but for now, we can safely assume this will include the typical tipped professions we see all over Michigan, including:

• Waitstaff and bartenders

• Hair stylists and barbers

• Nail technicians

• Hotel and hospitality staff (bellhops, valets, housekeeping)

• Delivery drivers and rideshare drivers (Uber, Lyft, DoorDash, etc.)

• Massage therapists and estheticians

• Casino dealers and service attendants

• Golf caddies and course attendants

Whether you’re working in Metro Detroit, Grand Rapids, Traverse City, or any of the many local service economies across the state, if your job customarily involves tips, you’re likely going to be eligible.

The law specifically warns not to expect eligibility if you’re just starting to accept tips to qualify. So if your job never traditionally involved tipping and suddenly you start a “tip jar” in 2025, the IRS is likely to scrutinize that.

Income Limits to Know

The deduction is designed to benefit working-class and middle-income earners, not high earners.

Here are the phaseout limits:

• $150,000 modified adjusted gross income (MAGI) for single filers

• $300,000 MAGI for married joint filers

If your income exceeds those thresholds, the deduction will gradually phase out and eventually disappear. This makes the deduction especially relevant for many Michigan families, where the cost of living is relatively moderate and incomes often fall below those limits.

Special Rules for Self-Employed Workers

If you’re self-employed and earn tips—say you’re an independent mobile barber or own a small cleaning business where clients tip you—there are a couple of key things to remember:

• Your tip deduction cannot exceed your net income from that business.

• In other words, if your business shows a net profit of $20,000, that’s the most you could deduct—even if you received $25,000 in tips.

That said, for many solo business owners, this is still a significant tax benefit and one that can help reduce self-employment taxes as well as federal income taxes.

How Do You Claim the Deduction?

The process will vary slightly depending on whether you’re a W-2 employee or self-employed:

If You’re a W-2 Employee:

• Your employer will report your total tips on your W-2 (Box 1 and Box 7).

• You’ll report the tips as usual on your tax return, then take the new deduction on a separate line (to be released in updated 2025 forms).

• You’ll still owe Social Security and Medicare taxes on your tips, but this deduction will reduce your taxable income for federal income tax purposes.

If You’re Self-Employed:

• You’ll include your tips in your gross income and report them on Schedule C.

• You’ll calculate your net business income after expenses.

• Then, you can claim the tip deduction (up to $25,000 or net income limit) on your 1040.

Regardless of your employment type, you don’t need to itemize to claim this deduction—it’s available even if you take the standard deduction. This is a huge win for many Michigan taxpayers who don’t itemize.

What Employers Need to Know

If you own a restaurant, salon, or any business where employees receive tips, you’ll need to take a more active role in compliance.

Employers must provide employees (and the IRS) with:

• A statement of total cash tips received

• The occupation of the employee

• Proper IRS or SSA reporting

This adds to your payroll and reporting responsibilities starting in 2025. If you’re a small business owner in Michigan and unsure how to adjust your payroll systems, I’d be glad to walk you through the compliance requirements before they go into effect.

What This Means for Michigan Families

Here in Michigan, thousands of workers in the service industry rely on tips to make ends meet. This new deduction can mean more take-home pay, lower tax bills, and greater financial stability.

For example:

• A Detroit bartender who earns $20,000 in tips annually and properly reports them could now deduct that full amount from their taxable income—potentially saving $2,000–$3,000 or more on their federal taxes.

• A Traverse City salon owner who is self-employed and earns $25,000 in tips could deduct it—assuming her net profit meets or exceeds that amount—lowering both income and self-employment tax liability.

• A server in Novi making $40,000 in wages and $15,000 in tips could qualify for the deduction and still fall under the income phaseout threshold—meaning real savings.

Planning Ahead: How I Can Help

As a solo CPA based here in Michigan, I work directly with clients like you—no hand-offs, no call centers, just me. My goal is to keep you informed, prepared, and confident in your tax filings.

To prepare for this deduction and maximize its benefit:

✅ Make sure your tips are being reported correctly
✅ Track your annual income to avoid phaseouts
✅ If you’re self-employed, keep accurate books and records
✅ Ask me to run a deduction scenario for 2025 so you can plan ahead
✅ Don’t rely on TikTok or viral tax trends—this is serious money on the line

Final Thoughts

This isn’t a loophole. It’s a legitimate deduction that can benefit Michigan’s tipped workforce in a big way—but only if you know how to use it.

From servers and stylists to drivers and dealers, if you or someone in your family relies on tips, now is the time to get organized, track your earnings properly, and prepare to take advantage of this opportunity.

If you have questions about whether you qualify, how to report tips correctly, or how this impacts your overall tax strategy, I’m here to help.

Let’s make sure the IRS gives you the credit you deserve.
📞 Contact me today at https://persitzcpa.com to schedule a personal consultation.

Whether you’re in Howell, Lansing, Detroit, or anywhere in between—I’ll help you get the most out of every dollar you earn.

If you’ve been thinking about buying a brand-new car, truck, or SUV, there’s a new tax break you’ll definitely want to know about—especially if you live here in Michigan where driving is a way of life.

Starting in 2025, a new federal tax deduction will allow many taxpayers to write off the interest paid on personal vehicle loans. It’s a temporary opportunity, but a valuable one that could save you up to $10,000 per year through 2028. As a Michigan CPA, I’m here to walk you through what this deduction means, how to qualify, and how to make the most of it.

What’s the New Car Loan Interest Tax Deduction?

The U.S. government is temporarily allowing taxpayers to deduct interest paid on a qualified personal auto loan for brand-new vehicles. This means if you finance your next vehicle purchase, a portion (or all) of the interest you pay each year could reduce your taxable income.

The deduction is:

• Available from 2025 through 2028

• Capped at $10,000 per year

• Phased out for higher incomes

• Only applicable to loans on new, U.S.-assembled vehicles

That’s a big deal—especially when you consider how many families in Michigan depend on reliable transportation and often choose to finance their vehicles.

Why This Deduction Matters for Michigan Residents

Let’s face it—owning a car in Michigan isn’t optional. From the rural roads of Livingston County to the busy suburbs around Detroit and Grand Rapids, we drive year-round through all kinds of weather. And whether you’re commuting to work, hauling the kids to sports practice, or heading north for the weekend, reliable transportation is a necessity—not a luxury.

This deduction gives us a chance to recoup some of the rising costs of car ownership, especially with interest rates still higher than they were a few years ago. If you’re planning to purchase a new car after December 31, 2024, this is something you’ll want to plan for—and I can help you do just that.

Who Qualifies for the Car Loan Interest Deduction?

This deduction is available to both single and joint filers who meet certain income requirements:

• Full deduction available for incomes up to $100,000 (single) or $200,000 (married filing jointly)

• The deduction phases out as income rises above these limits

• It’s not necessary to itemize deductions—you can claim this even if you take the standard deduction

As your CPA, I’ll help you determine if your income qualifies and how much of your auto loan interest is deductible each year. It’s important to track this properly to ensure you’re maximizing your tax benefits.

What Kind of Vehicles and Loans Qualify?

Not every vehicle or loan qualifies, so let’s break this down clearly.

To be eligible, your loan must:

• Be originated after December 31, 2024

• Be secured by the vehicle itself

• Be for a brand-new vehicle only

• Be for personal use only (not business or commercial)

Leases don’t count, and neither do loans on used vehicles. That means this deduction is strictly for new vehicle purchases with a qualifying loan.

Your vehicle must also:

• Be a car, SUV, minivan, van, pickup truck, or motorcycle

• Weigh under 14,000 pounds

• Be assembled in the United States

That last point is key here in Michigan. We’re the heart of the American auto industry. Brands like Ford, GM, and Stellantis (Chrysler) all manufacture vehicles right here in our state. So if you’re considering buying local and supporting Michigan jobs, you’re already one step closer to qualifying.

How to Claim the Deduction

Claiming this deduction is simple, but there are a few steps to get it right:

1. Track your loan interest – Your lender will provide a statement showing the total interest paid each year.

2. Provide your Vehicle Identification Number (VIN) – You’ll need to include this on your tax return, so keep your paperwork handy.

3. Make sure your lender reports to the IRS – Most major lenders already do, but it’s worth confirming.

Even if you normally don’t itemize your deductions, you can still claim this one, which makes it even more valuable for many Michigan families.

What If You Refinance?

If you refinance a qualifying car loan later on, the interest may still be eligible—as long as the refinanced amount doesn’t exceed the original loan and the vehicle still qualifies. This can be a helpful strategy if interest rates drop during the 2025–2028 window.

Need help figuring out if a refinance affects your deduction? Just give me a call—I’m happy to take a look at your loan terms and provide guidance specific to your situation.

Tips for Michigan Taxpayers to Maximize This Deduction

Here are a few things you can do to make sure you’re getting the most out of this opportunity:

1. Time Your Purchase Wisely

Since this deduction only applies to loans originated after December 31, 2024, it might make sense to delay your vehicle purchase until early 2025—especially if your current car can hold out a bit longer.

2. Buy American-Assembled Vehicles

Many Michigan residents already buy vehicles made right here in-state, but double-check that your new car is assembled in the U.S. to ensure eligibility. This is also a great way to support local jobs and our economy.

3. Avoid Leases and Used Cars

While leasing may be attractive for some drivers, this deduction is only for financed purchases of new cars. Used cars—no matter how new they seem—don’t qualify.

4. Keep Detailed Loan Records

Be sure to save your loan paperwork and lender statements that detail how much interest you’ve paid. The IRS may require proof, and proper documentation will make your tax filing smoother.

5. Talk to a CPA (like me!)

This deduction may seem simple on the surface, but depending on your income level, tax situation, or other deductions, there may be nuances. I can help you figure out how this new rule fits into your overall tax strategy—and how to legally reduce your tax liability.

Planning Ahead: 2025–2028 Is a Window of Opportunity

This deduction isn’t permanent. It’s currently available only for tax years 2025 through 2028. That gives you a four-year window to take advantage of this benefit.

If you plan to buy multiple vehicles during that time (say, one in 2025 and another in 2027), you may be able to claim the deduction more than once—up to the $10,000 annual cap per year.

This is a rare opportunity to receive tax relief for something most of us in Michigan need anyway: reliable transportation.

Final Thoughts

Living and working in Michigan, I know how important vehicles are to our daily lives. From navigating snowy backroads to enjoying a summer drive to Lake Michigan, cars are part of our culture and our economy.

This new deduction gives us a chance to ease the financial burden of car ownership—but only if we plan ahead and take advantage of it the right way.

As your local CPA, I’m here to help you do just that.

Let’s talk about your tax strategy, future vehicle purchases, and how to reduce your overall tax bill in the years ahead. I’d be happy to walk through this with you and help you make the best decisions for your family and your finances.

Have questions or want help planning your next big purchase?
📞 Call me at Persitz CPA or head over to https://persitzcpa.com to schedule a consultation.

Let’s make sure your next car works for your life—and your taxes.

Don’t Be Fooled: “No Taxes on Social Security” Doesn’t Mean What You Think

You may have seen headlines recently claiming there’s “No Taxes on Social Security” — but let’s be clear: that doesn’t mean your Social Security benefits are completely tax-free.

At Persitz CPA, I want to break down what’s really changed and what hasn’t—so you can make informed decisions about your retirement income and taxes.

✅ What Hasn’t Changed: Social Security Can Still Be Taxable

Despite some recent media buzz, the way Social Security benefits are taxed has not changed. As it has been for decades, up to 85% of your Social Security income may be taxable depending on your overall income.

The IRS uses a formula based on your modified adjusted gross income (MAGI), which includes things like wages, investment income, pensions, and tax-exempt interest. When your income exceeds certain thresholds, a portion of your benefits becomes taxable.

🆕 What Has Changed: A New Temporary Senior Deduction

Here’s the real update: Congress has introduced a temporary “senior bonus” deduction that can reduce the taxable portion of Social Security benefits from 2025 through 2028.

This new deduction can be worth:

• Up to $6,000 for single filers

• Up to $12,000 for married couples filing jointly

👉 Good news: This deduction applies per individual and can now be claimed even if you itemize deductions.

📉 Income Phase-Out Limits

The senior deduction begins to phase out when your modified adjusted gross income (MAGI) exceeds:

• $75,000 for single filers

• $150,000 for joint filers

The deduction phases out entirely once income reaches:

• $175,000 for single filers

• $250,000 for joint filers

So while not everyone will qualify for the full deduction, many seniors will still benefit from lower taxable income over the next few years.

💡 What This Means for You

If you’re retired or approaching retirement, this could result in a meaningful reduction in the taxes you owe on your Social Security benefits—but it won’t eliminate those taxes entirely.

Every situation is different, so it’s important to consider how this deduction fits into your full retirement income plan. That’s where I can help.

📞 Let’s Talk Tax Planning for Retirement

At Persitz CPA, I specialize in helping individuals and families navigate the complexities of retirement tax planning. Whether you’re already receiving Social Security or you’re planning ahead, I can help you:

• Maximize tax-saving opportunities

• Understand how the new deduction applies to you

• Strategically plan for 2025–2028 and beyond

👉 Don’t rely on viral TikTok advice—trust a real tax professional. Get in touch today to schedule a personalized consultation.

For personalized assistance with your small business tax preparation, strategic bookkeeping, or comprehensive business consulting in Michigan, explore my services or contact Persitz CPA for a consultation.