Having a Baby? Here Are Helpful Tax Tips!

Congratulations on your soon to be dependent!  Regardless of when your child’s birthday is, your child is considered to be your dependent for the whole year in which he or she is born or adopted.  Your new addition is bound to cost you a bundle over the years, but here are some tips for maximizing the tax savings available to you as a parent.  Make sure you file for your child’s Social Security Number immediately after their arrival!

Can I Deduct My Home Office?

If you've ever worked from home, you've probably asked your CPA this question.   Most clients think that they can take a deduction if they have ever worked from home.  The truth is, the IRS has very specific guidelines to determine who may qualify for a home office deduction.

The two basic requirements are:

1. Regular and Exclusive Use – Part of your home must be used solely for business on a regular basis.  If you use the space for both personal and business purpose then you cannot claim that space as your office.  For example, if you work from your kitchen table, that space will probably not qualify for exclusive use for business!

2. Principal Place of Business – Your home office will meet the principal place of business requirement if you regularly use it exclusively for administration or management of your business and you use no other fixed location for similar purposes.  Administrative activities can include billing, keeping books and records, ordering supplies, setting up appointments, placing orders.

NON PROFIT ORGANIZATION NEWS!

Governor Cuomo has passed the New York Nonprofit Revitalization Act which takes effect as of July 1, 2014.  There are 10 key changes that all Nonprofits should know about!

1. All nonprofit organizations with 20 or more employees and annual revenue of $1 million must adopt a whistleblower policy.
2. All Nonprofits must have a conflict of interest policy.
3. There are specific steps that must be taken before entering into a related party transaction.
4.  Board of Directors cannot be influenced when making compensation decisions by those being compensated.
5.  If your organization is required to file an independent audit report you must have an audit committee to oversee this process.
6. The guidelines for when an audit report is required have changed.  Organizations with Gross Revenue greater than $500,000 now require an audit.  This is an increase from revenues of $250,000.   In 2017 it will increase again to $750,000 and in 2021 it will increase to $1 million.