The Key to Long-Term Stability and Growth Running an Adult Family Home (AFH) is more than providing quality care — it’s managing a business that supports both your residents and your livelihood. To keep your AFH thriving, you need a strong financial foundation. Without one, even the best-run homes can face cash flow issues, tax problems, or unexpected financial stress. Let’s break down how to build a solid financial foundation that helps your AFH grow with confidence. Underst

A Simple Guide for Adult Family Home (AFH) Owners For many Adult Family Home (AFH) owners, tax season can feel overwhelming — from gathering receipts and payroll records to figuring out which expenses are deductible. Add in tight deadlines and changing IRS rules, and it’s easy to see why most AFH owners dread this time of year. But with the right plan in place, tax season doesn’t have to be stressful. By staying organized and starting early, you can save time, reduce anxiety,

Don’t Wait for Tax Season — Build a Plan That Works All Year If you own or manage an Adult Family Home (AFH), you already juggle resident care, staffing, and licensing — so when tax season hits, it can feel like a scramble. But here’s the truth: smart AFH owners don’t wait until April to think about taxes. A proactive, year-round tax plan can save you money, reduce stress, and help you make better business decisions. When you stay ahead of your taxes, you stay in control of y

Keep More of What You Earn — Legally and Confidently Running an Adult Family Home (AFH) is hard work. Between staffing, licensing, and caring for residents, taxes often feel like the last thing on your mind. But here’s the truth — paying taxes is inevitable, overpaying is not. There are many legal  ways to reduce your tax burden and keep more of your hard-earned income. Understanding how these strategies apply specifically to your AFH can make a big difference when tax season

For wages paid to employees (not owners): Both LLCs and S-corps can fully deduct wages paid to staff members. If you have employees working for your business who are not owners, those wages are a legitimate business deduction regardless of whether you operate as an LLC or S-corp.

(Without Risking an L&I Nightmare) If you operate an Adult Family Home (AFH) in Washington State, payroll for live-in caregivers is one of the most misunderstood — and risky — parts of running your business. Many AFH owners do what they’ve seen others do: flat daily rates, “salary” caregivers, or netting room and board against pay. The problem? Most of those approaches do not comply with Washington labor law. This post walks through: What the law actually requires The correct

What Every AFH Owner Needs to Know Now — Not Next April You made it through tax season, but maybe the result wasn’t what you expected. Maybe you owed more than you planned for — or worse, got hit with penalties for underpayment. If you’re an Adult Family Home (AFH) owner, this is your reminder: Estimated taxes are not optional. And the sooner you start planning for them, the easier next April will be. Let’s walk through how estimated taxes work and how to avoid that gut-punch

If you run an Adult Family Home (AFH), you probably spend a lot of time behind the wheel. From picking up groceries to transporting residents to appointments, driving is part of your daily routine. But here’s what many AFH owners don’t realize: those miles could be saving you thousands on your taxes. The key is knowing which trips count as business deductions and which don’t. Let’s make it simple. 2025 IRS Mileage Rates According to the Internal Revenue Service (IRS), the sta

Stop Overpaying Taxes by Understanding IRS Notice 2014-7 If you operate an Adult Family Home (AFH), chances are you’ve received Medicaid waiver payments — especially if you serve residents supported by state programs. But here’s what many AFH owners don’t realize: Not all Medicaid payments are taxed the same way. Misunderstanding how these payments work could cost you thousands in overpaid taxes — or create red flags with the IRS. Let’s break it down in simple terms. What Are

Sole Proprietor vs. LLC for AFH Owners (And Why Your Business Structure Matters More Than You Think) As an Adult Family Home (AFH) owner, your focus is on providing quality care — but if your business structure isn’t set up properly, you could be putting yourself at risk without even realizing it. Many AFH owners start out as sole proprietors because it’s simple and affordable.But as your responsibilities, income, and liability grow, staying a sole proprietor can expose your

Avoid IRS Issues, Protect Your Business, and Get Paid with Confidence A Simple Guide for Adult Family Home (AFH) Owners As an Adult Family Home (AFH) owner, you wear every hat imaginable — caregiver, manager, HR, compliance officer, and business owner. You work hard to care for residents and keep your business running smoothly. But one question I hear all the time is: “How do I actually pay myself?” It’s a great question — and an important one. Whether you’ve just opened your

A Simple Plan for AFH Owners Who Feel Overwhelmed If you’re an Adult Family Home (AFH) owner who’s behind on bookkeeping, let me start by saying: you are not alone — and it’s not too late to get back on track. Between caring for residents, managing caregivers, and staying compliant with state requirements, your financials often take the back seat.But ignoring your books can lead to missed deductions, inaccurate financials, and confusion when it’s time to plan or file taxes. L

A Must-Read for Busy AFH Owners Who Avoid the Numbers If you run an Adult Family Home (AFH), chances are you didn’t get into this work because you love spreadsheets. You’re focused on care, not accounting — and the words “Profit & Loss statement” might make your eyes glaze over. But here’s the truth: Your Profit & Loss (P&L) statement is one of the most powerful tools you have to run a successful, sustainable AFH. And ignoring it? That can cost you money, missed opportunities

Don’t Leave Money on the Table at Tax Time (Especially If You Own the Home You Operate Your Adult Family Home In) Running an Adult Family Home (AFH) means you wear many hats — caregiver, manager, cook, scheduler, and business owner. With so much to juggle, it’s easy to overlook valuable tax deductions that could save you thousands every year. If you own the home where you operate your AFH, you’re not just responsible for resident care — you’re also running a licensed business

Why Every Adult Family Home Owner Needs a Plan — Even If You’re Not Retiring Yet You’ve spent years building your Adult Family Home (AFH) with care — managing inspections, caring for residents, hiring staff, and navigating licensing renewals. But here’s a question too many owners avoid until it’s too late: 👉 What’s your exit plan? Whether you plan to retire in 2 years or 10, the time to prepare your AFH for sale or succession is now — not later. The way you plan your exit wi

Running an Adult Foster Home (AFH) or Adult Foster Care business in Washington or Oregon means you wear many hats — caregiver, administrator, and often bookkeeper. With so many daily responsibilities, taxes can easily become confusing or overlooked. That’s why partnering with a professional who specializes in AFH tax compliance can make all the difference. Tax laws for adult foster homes — especially when dealing with Medicaid waiver income under IRS Notice 2014-7 — are compl

Because Tax Season Isn’t the Only Time You Need Support Running an Adult Family Home (AFH) means you carry more responsibility than most business owners. You're not just managing a business — you're managing lives, compliance, staff, and often, your own property. But here’s what most AFH owners don’t realize until it’s too late: You don’t just need a tax preparer — you need a year-round financial advisor who understands your business. And that difference could save you thousa

If you own or operate an Adult Foster Home (AFH) or Adult Foster Care business in Washington or Oregon, you’re not alone if you’ve fallen behind on your tax filings. Between resident care, staff management, and state inspections — taxes often take a backseat. But here’s the truth: getting caught up is easier than you think — especially when you take it one step at a time with a professional who understands your industry. As a Vancouver, WA and Portland, OR AFH tax expert, I h

April 15, 2025, has come and gone. If you're an Adult Family Home (AFH) owner, you might be feeling relieved — or maybe you’re still...

On June 9th, I had the pleasure of attending the Oregon Adult Care Home Conference at OMSI, and I’m still feeling energized from all the...