Four things with your coffee
Yes, the newsletter is back. We took a break, drank a lot of coffee, and now we're sending it again.
This one is for property owners, business owners, and anyone curious enough to read four short tax notes with coffee.
Passive is not active.
If the IRS calls the rental passive, the loss sits there. It does not wipe out your W-2.
Read why you can't deduct rental losses against W-2 incomeAlready maxing your 401(k)? A cash balance plan lets you save more.
If you own a profitable business, pay yourself a steady salary, and have a small staff, a cash balance plan can sit on top of your 401(k) and move a lot more income into tax-deferred savings each year, especially in your 50s and 60s. The catch is that the contribution is fixed every year, good year or flat.
Read how a cash balance plan stacks with a 401(k)The short-term rental trick is a different test, not a free pass.
Read the short-term rental breakdownA Trump account is one more bucket, not a 529.
The new account for kids under 18 caps family and employer contributions at $5,000 a year, and a 529 still does more of the work for tuition.
Read what Trump Accounts mean for parents and business ownersBuying the LLC instead of the building (Part 1)
What comes with the company when you buy the LLC that owns a property instead of the property itself, from its old loans and tax basis to Prop 13. Part 2 next week.
Part 1: Buying the LLC instead of the buildingArchive note: Part 2 ran in the October 20, 2026 issue. Read Part 2
What clients say
Some of you took the time to review us on Google. Here are a few, word for word. Thank you.
Shawn was excellent to work with on a complex real estate transaction involving a number of tax and financial considerations.
He was extremely responsive, knowledgeable, practical, and very easy to collaborate with.
He did a great job helping us work through the tax implications of the transaction, explaining the issues clearly, and coordinating with the attorney and the rest of the team so that the tax treatment and transaction documents stayed aligned.
I especially appreciated how accessible and responsive he was throughout the process. He was a real asset to the team, and I would definitely work with him again and recommend him to others.
I highly recommend filing taxes with this CPA. Mr. Lavi is very efficient and communicative with his clients and I always appreciate his guidance. 10/10 quality.
Shawn is great, he helped me save a lot of money on taxes. He's always diligent, organized and timely. Highly recommend.
If one of these is your situation, send us a note. We'll look at your actual numbers.
Shawn Lavi, CPA
Elias Aziz Lavi CPA
Not tax advice. This newsletter is shown as sent on Monday, October 12, 2026, lightly adapted for the web. Rules, amounts, and dates may have changed since then. It is general information, not advice for your situation.