109 Bedford Avenue
Bellmore, New York 11710

Monday, December 3, 2018

New York State after the TCJA (New Tax Law)

New York State after the TCJA (New Tax Law)

The new tax law known as the Tax Cuts and Jobs Act (TCJA) made changes to federal income taxes that we have written about throughout this past year.

New York State, however, has decided not to follow all the changes in the TCJA.   Since New York and the IRS are playing by different rules, there are a few pieces of information that your CPA will need to prepare your New York State return even though you thought the federal changes made them obsolete.

Alimony – the TCJA says that if you sign a divorce or separation agreement after December 31, 2018, alimony payments are not deductible by the payor and are not included in income of the payee.  All alimony payments under agreements finalized prior to that date will still be deductible on the tax return of the spouse who paid alimony, and reported as income on the return of the spouse who received the alimony.

On your New York return, ALL alimony payments are deductible by the payor and are included in income of the payee.

529 Plan distributions for K-12 tuition – the TCJA allowed 529 Plan distributions to be used towards Kindergarten through twelfth grade private school tuition without tax or penalty.

On your New York return, all 529 distributions that are used for K-12 tuition are considered non-qualified distributions and will be subject to both income tax and a 10% penalty.

Itemized Deductions – the TCJA removed itemized deductions for unreimbursed business expenses, lowered the threshold for medical expenses to 7.5% of AGI and limited the deductions for state and local income and real estate taxes to $10,000.

On your New York return, you will now be allowed to itemize your deductions even if you claim the standard deduction on your federal return.

New York State itemized deduction for real estate taxes will not be limited, so if you paid $15,000 in property tax in 2018 you can deduct the full $15,000.

Since New York is not following the TCJA, the threshold for medical expense deductions on the State return is still 10%.

New York will allow miscellaneous deductions in excess of the 2% floor as in past years.

Honorine M. Campisi, CPA

Tuesday, November 20, 2018

What are the rules for NYS Sales tax for my profession? Nail Salons (Manicure and Pedicure Services)

Welcome to the latest installment of our blog “What are the rules for NYS Sales tax for my profession?” In this blog we are highlighting another industry with a few of the broad guidelines to follow!  Our hope is to not only provide helpful information for the business owners, but the consumers as well!

This blog’s industry is Nail Salons (Manicure and Pedicure Services)

The sales of manicure and pedicure services are exempt from state and local taxes everywhere in New York State outside of New York City.  Sales of manicure and pedicure services are subject to New York City local sales tax when they are sold in New York City.

If any nail products are sold to customers, these are sales of tangible personal property subject to tax throughout New York State.  There is an exemption for products that are designed to treat a medical nail problem.  Sales of these products are exempt from sales tax if the product contains a recognized drug or medicine.

Any purchases of equipment for use in the business, such as chairs, soaking tubs and bowls are subject to sales tax at the time of the purchase.

In addition, utilities used to provide these services are subject to sales tax.

This is just a brief overview of the sales tax laws regarding businesses that sell manicure and pedicure services.  Feel free to give our office a call for more information.

By Renee Greenspan

Wednesday, November 14, 2018

Do you use Quickbooks Online?

Do you use QuickBooks Online? 

QuickBooks Online has a free mobile app that allows you access from any of your mobile devices to your account! 

You can access from your Apple or Android device:

  • ·         Your customer information
  • ·         Add customers/vendors or import them from your contacts
  • ·         Add notes to customers and transactions
  • ·         Create, view or email invoices and estimates
  • ·         Convert estimates to invoices
  • ·         Receive payments
  • ·         Take pictures of your receipts and attach them to your expenses
  • ·         Track expenses
  • ·         Download bank transactions
  • ·         Reconcile your bank statements
  • ·         Call your customers directly from the app on your phone
  • ·         Print your documents/invoices from your phone to a wireless printer
  • ·         View/add vendor information
  • ·         Get directions to your customers/vendors directly from the app

Anything that you do on the app shows up automatically in your online account right away.  The app carries the same online security as your online account. 

With all of these new advances you might want to consider switching to QuickBooks Online.

Call our office for more information.

Christine A. Murphy
Accounting Manager