📆 June 15: Q2 Estimated Tax Payments

If you’re self-employed, have equity compensation, rental income, or freelance on the side, this one’s for you.

To avoid underpayment penalties when you file next year, make sure your 2025 tax estimates and withholding are on track to hit at least:

• 110% of your 2024 tax liability if your household income is over $150K, or

• 90% of your total expected 2025 tax bill.

Not sure what you should pay? Gelt can help!

📆 June 15: California PTE Tax Election Deadline

If you own a profitable S-Corporation or Partnership in California, this deadline matters. High-income earners in CA can save thousands in federal taxes annually with a well-timed PTE election. But there’s a catch: miss the June 15 deadline and you’re locked out until 2026.

Want to know more? Check out our new Tax Talk Unfiltered episode

🔬 Federal Tax Bill: What You Need to Know

A sweeping federal tax bill - dubbed “The One, Big, Beautiful Bill” - is gaining steam. While it’s not law yet, here are some fun facts to share at your next dinner party:

• The 2017 individual tax cuts would become permanent (including 37% top rate)

• The QBI deduction would increase to 23% for pass-through business owners

• The estate tax exemption would get a permanent boost to ~$15M per person (adjusted annually)

• Adds deductions for tips, overtime pay, and car loan interest

🔎 Why it matters: 
If this passes, it could reduce urgency to make large gifts or accelerate income into 2025, and increase the value of optimizing pass-through income and business deductions today

🔴 Current status: Not law yet, but worth preparing for.

📘 Read our full breakdown of the bill + planning tips →

🚗 Buy or Lease? Business Vehicle Write-Offs in Focus

Thinking about a new car before prices spike? You’re not alone.

When it comes to getting a new vehicle, it’s not all about the price. The tax impact depends on how you buy, what you buy, and how you use it. Here are some key considerations you can take into account:

Buying heavy (SUV, truck over 6,000 lbs)?

• You might qualify for bonus depreciation or Section 179

• Big upfront write-offs possible, even if financed

Leasing or light vehicles?

• You’ll still have plenty of deductible expenses, but spread out over time

• Great for cash flow or flexibility

💡 The key: business use must be at least 50% to unlock bigger deductions.

💬 What’s Happening in Our Gelt Community

We’re not just seeing these moves in theory, we’re seeing them in action. Here’s what Gelters are doing (and asking):

💼 “Should I buy that SUV or Tesla now?”: A sharp uptick in questions about vehicle purchases is happening, likely spurred by tariff rumors and price volatility. Business owners in particular are asking:

• Should I buy a >6,000 lb vehicle and use bonus depreciation?

• Can I write off the cost if I use the car <50% for business?

We’ve been helping clients model write-offs across Section 179, bonus depreciation, and EV incentives to time these decisions strategically. If you’re thinking about buying a car, chat with your CPA about it, or reach out to us.

🏦 Entity optimization is trending: Many business owners are re-evaluating their business structures. Key triggers include:

• Income jumps → more self-employment tax exposure

• Hiring family members → potential deduction opportunities

• Wanting to split income strategically between salary + distributions

If you’re making more than ~$100K net through an LLC and haven’t made an S Election, a mid-year entity optimization review could unlock real savings.

Learn about the perks and pitfalls of S Election here.

🥂 And finally… Tax wins by Gelt worth celebrating

• One founder shaved $32K off their tax bill by electing CA PTE tax a the right time.

• A real estate investor locked in accelerated depreciation on $900K in property upgrades after a cost segregation study.

• 47% of Gelt clients already maxed out 2025 retirement contributions, way to be proactive! 💪

🗞️ Gelt in the News

Gelt remains a trusted voice in tax and financial strategy. Here’s where our insights have been featured this month:

• Kiplinger: Spencer explores practical ways to use AI in your financial life, offering insights on how technology can enhance decision-making and long-term planning.

• Economic Insider:  Tal Binder outlines Gelt’s approach to proactive, year-round tax planning, shaping a new standard for high-income earners and business owners. 

• GOBankingRates: Rachel Richards shares how high-income earners use charitable giving as a strategic tax tool- and how you can, too.

💻️ Upcoming Webinars

Join us and our partners at Valur for a webinar on Capital Gains, Income Tax Planning Solutions and How Technology is Changing the Game for Wealth-building

🔗 Register here

🩺 Calling All Doctors!

We teamed up with TrifectaMD for a session on tax-smart strategies tailored to high-earning physicians - from entity structuring to advanced planning.

🔗 Watch it here

💰 Make Giving - Strategic!

Read more about our partnership with Daffy and what it could mean for your charitable giving here.