Anne D'Amico, CPA, PFS

The Pass-Through Entity Tax for New York State and New York City is a great tax savings tool but has additional reporting responsibilities and requires a layout of funds. The PTET is an optional tax that businesses pay, which lowers the business’s taxable income for federal purposes, and serves as a credit on the personal tax return of the owner. Below are some points regarding the NYS and NYC PTET for 2024: • The PTET requires quarterly estimated tax payments throughout the year at 25% of the annual tax liability due on 3/15, 6/15, 9/15, and 12/15. • A separate stand-alone business PTET tax return is required to be filed with the State/City as well. • The owners' tax credit must be added to their personal return. Although the cash outlay and additional reporting requirements are a drag, overall, it’s well worth it and a win-win! Have a question about this or a different tax-related matter? Feel free to reach out! #shomercpa #tax

19

4 Comments

Best way to grow your firm or make the move to business ownership? Purchase a firm! Padgett has several firm owners looking to sell - from small to large, these firms are a great opportunity for an entrepreneurial accountant. I’d love to chat about which of these might be a good fit for you and share the added benefits of being a part of the Padgett network. Take a look at this one for example: https://bit.ly/4ceAlMP

10

1 Comment

The New Jersey Division of Taxation has adopted a new regulation, effective August 19, 2024, concerning the taxation of stock option income for nonresidents working in New Jersey. Under N.J.A.C. 18:35-5.3, nonresidents must report income from stock options, stock appreciation rights, and restricted stock to New Jersey in the same year and manner as reported on their Federal tax returns. The New Jersey tax due is determined by an allocation factor, which considers the proportion of days worked in New Jersey relative to total days worked both inside and outside the state during the period when the stock options were earned. “Allocation period” is defined as taxpayer’s workday allocation factors between the date on which the options were granted and the date on which the options were exercised. The regulation discusses an example which suggests that days worked at home by a nonresident in New York would not be counted as New Jersey work days under this regulation. Although, the year that was mentioned in the example was prior to 2023 when the convenience of the employer rule was not in effect (effective January 1, 2023). Additionally, the Division made technical amendments to other personal income and partnership tax regulations.

5

Unsure if a fixed fee bookkeeping model is right for you? Listen to how it has transformed The United Way of Passaic's financial management! Client Mary Celis wasn't hesitant at all; she was thrilled to give it a try. Managing vendors charging hourly rates was a burden. Costs were high and often exceeded their budget. A flat monthly fee has been a game-changer, helping them: ✅ Manage cash flow ✅ Anticipate indirect costs like accounting, HR, and audit services Indirect costs are tough to fund and control in a nonprofit setting, and high ratios can be a red flag for donors. Adopting this model improves financial stability and strengthens our grant applications. #NonprofitLeadership #FinancialManagement #FixedFeeModel #CostEfficiency #MissionDriven

5

1 Comment

We at the New Jersey Society of CPAs often say that continuing professional education isn't just about collecting CPE credits. Education can help steer careers and make businesses more profitable. NJCPA member and Withum partner Edward Mendlowitz proves that point with his excellent summary of Ron Baker's session on strategy and positioning for profitability that he presented at the 2024 NJCPA Convention & Expo in Atlantic City. Ed and Ron raise awareness of the important process of determining strategy for your practice, and perhaps for yourself. #education #strategy #profitability Accounting Today

23

2 Comments

Your finances, our focus. When it comes to your business, you need to work with someone you can trust. Alloy Silverstein’s accountants and CPAs are reliable and understand that your business is your priority. Learn more about working with our team and the accounting solutions that we can offer your business on our website or contact an Alloy Silverstein advisor today. #AlloySilverstein #accounting #accountant #CPA #accountingsolutions #businesssolutions

1

I have been seeing something lately with a client. And it affects anyone who is employed in the state of Massachusetts but doesn’t work there. Is this you? Typically, the way that tax works is you pay taxes in the state in which you work. So for example, let’s say you live in NJ and commute to NY and work in NY 2 out of 5 days a week. You’ll pay state NY tax on those 2 days a week. Here’s the kicker though… If you’re employed by an employer in MA and work in another state, MA is still withholding state taxes on all of your income. In order to get a refund on this state tax you paid to MA, you have to do it when you file your “paper” tax return. Why am I telling you this? Because even if this doesn't pertain to you, it’s a reminder that you need to know what your applicable state rules and laws are. When you work with a professional, like me, you are kept up to date with all the new laws so you know what you owe… … and so you know you are always on the up and up. Have you noticed tax laws changing in the state where you live? #success #entrepreneurship #business #smallbusiness #construction

35

12 Comments

Are you a CPA nearing retirement age (around 75) in Broward or Miami-Dade County? 🏖️ Or do you know someone who fits this description? I'm exploring potential opportunities for CPA solo practitioners with a solid book of business who are looking to sell within the next 3 years or less. 💼 The ideal scenario: 👥 Bring in an experienced CPA (15+ years) to manage the transition 🤝 Familiarize with clients 💻 Implement new technology and processes 🎓 Hire and train quality staff 🌎 Potentially offshore some work ⚙️ Improve inefficiencies 🚀 Attract new clients ✅ Optimize client base Fellow CPAs, I'd appreciate your thoughts on the viability of this opportunity for a younger CPA with a book size of 150k and wants to grow to a 1 million plus size firm. Concerns: 🎭 Some CPAs claim they want to sell/retire but may just be seeking skilled help ⚖️ Risk of buying a job rather than a business Ideal firm attributes I'm seeking: 1️⃣ Cloud-based and paperless operations ☁️ 2️⃣ Average fee for personal returns (Form 1040) above $800 💵 3️⃣ Business return revenue exceeding personal return revenue 📈 4️⃣ Existing staff member who communicates with clients 📞 5️⃣ Gross revenue of $500k or more 💰 If you know someone who fits this profile or have insights to share, please comment, tag, or DM me to start a conversation. 📩 This post is for engagement and exploration purposes. 🔍 #CPAfirmbuying #SOLOCPA #RetirenowmrCPA

33

11 Comments

The end of the year is coming fast and tax season will soon be upon us. Are you ready for all the work that comes along with this? McKonly & Asbury is hosting a Business, Accounting, and Tax Year-End Tune Up webinar on Thursday, October 31st at 2pm. Some items discussed will be: -Year-end Business Reporting Matters: Payroll and payroll reporting, contractor and third-party reporting, banking, insurance, and other required reporting for businesses. -Internal Accounting and Other Internal Financial Reporting Matters: Properly closed off accounting and reporting, tips on ensuring certain accounts and analysis are prepared accurately and correctly, and reporting needs for banks and other third parties. -Tax Matters: Review of tax code matters that impact most businesses, Accelerated Depreciation and changes in tax code, changes in other deductions and amounts that could impact a business owner, and state and local tax matters to be aware of. You can sign up for FREE by following this link: https://lnkd.in/drxyRpEe

2

Pennsylvania provides NOL limitation relief, amends related party “addback” In brief What happened? Budget-related tax legislation enacted in Pennsylvania on July 11 increases the net operating loss (NOL) deduction limitation (from 40% to 80% of taxable income by 2029), provides an election concerning the related party expense addback “subject to tax” exception, and amends provisions regarding the deduction of goodwill for bank shares tax purposes, among other changes.  [S.B. 654, enacted 7/11/24]  Why is it relevant?  The legislation marks the latest chapter in Pennsylvania’s limitations on NOL utilization, which has been subject to litigation and amended multiple times over the years. This legislation increases the current percentage limitation in 10% annual increments but continues the 40% limitation for NOL carryforwards from loss years prior to 2025.  Actions to consider  Taxpayers should consider the need to track NOLs by year and the potential impact of this legislation on their ASC 740 tax provision.  https://lnkd.in/gKpGv_-Q

29

New Jersey remote workers appeal New York income tax rules  feat. Jason Rosenberg  Attention New Jersey residents! New Jersey is now offering an incentive for remote working residents who successfully win their own legal challenge against New York. Expert Jason Rosenberg tells you more in this News12 article.  #wiss #newjersey #newyork #remote #tax #nytaxes

4

Get actionable MA small business tax advice on deductions, tax strategies, and compliance to optimize your business growth in Massachusetts.... https://lnkd.in/eW-i2VpY

2

Get actionable MA small business tax advice on deductions, tax strategies, and compliance to optimize your business growth in Massachusetts.... https://lnkd.in/eW-i2VpY

1

Have you heard? Rhode Islanders who have been impacted by severe storms and flooding may qualify for a tax extension. Learn more here: https://lnkd.in/dAq9ZP9r #RI #Extension #TaxExtension #RhodeIsland #RIStormTaxExemption

3