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

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

DIVORCE AND THE TCJA

The new tax law known as the Tax Cuts and Jobs Act will impact married taxpayers who divorce after December 31, 2018.  Like they say, “timing is everything,” and that is certainly the case here.

Before the TCJA, alimony was 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.  The TCJA changed 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.

So, if you are in the process of a divorce and will be paying alimony, hurry up and sign those papers!  If you will be on the receiving end of those alimony payments, you’ll want to move more slowly. 

Consider using the loss of the tax deduction to negotiate a lower payment if you will be paying alimony.

If you are currently paying or receiving alimony from an agreement that was signed before December 31, 2018, you may still deduct payments of alimony and must include alimony payments received in income on your return.

Honorine M. Campisi, CPA