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- Congress Just Changed the Rules Mid–Tax Season
Congress Just Changed the Rules Mid–Tax Season
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I share the 4-5 most important accounting that actually matter. I scroll so you don’t have to.
So grab your coffee, take a quick break, and lets catch up.
In this issue:
Congress just changed the rules in the middle of tax season
The home office deduction line nobody understands
Spotify proves pricing power wins
- Ledger Lowdown Team
WTF of the Day🤯
Congress Just Blew Up D.C.’s Tax Plan Mid-Season
Congress voted 49 to 47 to block D.C. from opting out of Trump’s tax cuts. Donald Trump is expected to sign it. D.C. was counting on $600 million through 2029 and funding a local child tax credit worth up to $1,000 per kid. That credit is now dead. About 78,000 kids were supposed to benefit.
Worse, this hits in the middle of filing season. The city warned it may have to pause processing and force refiles. If you have D.C. clients, slow down. If they already filed, be ready to amend. Do not assume your software is right until D.C. says it is.
Zoom out. This is about control. D.C. tried to raise revenue to plug a $1.1 billion hole. Congress overruled them. Conformity is political. And politics can wreck your tax season fast.
What’s poppin in accounting🍿
Why Everyone Suddenly “Needs” a Home Office
That extra bedroom isn’t about Zoom aesthetics. It’s about taxes.
Here’s the line in the sand. If you get a W-2, you get nothing federally. Remote and hybrid employees are out. The home office deduction is for 1099 income only. Freelancers. Contractors. Side hustlers with a Schedule C. No 1099, no deduction. Simple.
If you qualify, you’ve got two options. Easy mode is $5 per square foot up to $1,500. Done. The regular method can be bigger but you need receipts and a space used exclusively and regularly for business. Not the kitchen table. A real, defined workspace. You can deduct part of rent, utilities, insurance, even depreciation based on square footage.
Ask clients one question, do you have self-employment income? If yes, run both methods and pick the bigger number. If no, stop hunting for loopholes and push for employer reimbursement instead.
Weekly Trend Chart 📊
Spotify Just Added More Users Than Ever
Spotify just added 38 million monthly active users in one quarter. Total is now 751 million. That’s basically 1 in 11 humans on Earth. Shares popped 15% premarket.
Premium subs hit 290 million. Gross margin hit a record 33.1%. That’s the real story. They raised US prices and still grew. That’s leverage. When a product becomes a daily habit, you get pricing power.
Q1 revenue guidance was a touch light, but user growth keeps compounding. If you run a subscription business, take notes. Protect margin. Earn the right to raise prices.
And if you missed out, we made our own Spotify playlist for when you’re grinding in the Excel sheets.
Our Spotify
Meme of the Day😂
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