First State CPAs and Associates

3 hours ago

Google's updates to its search bar are really interesting: www.techbrew.com/stories/google-it-while-you-still-can

And you might be tempted to ask all kinds of tax questions with the new features. And the thing is, the answer might sound definitive in the results but actually still be wrong for your situation.

Tax questions need details that AI agents don't think to ask for.

Maybe your income changed. Maybe you got an IRS notice. Maybe you’re asking about a deduction, but the real issue is how your business is set up.

Don't rely on quick answers from Gemini when it comes to your IRS obligations.

Ask a professional you can trust (we're right here). ... See MoreSee Less

First State CPAs and Associates

1 day ago

𝘿𝙤 𝙄 𝙝𝙖𝙫𝙚 𝙩𝙤 𝙥𝙖𝙮 𝙩𝙖𝙭𝙚𝙨 𝙞𝙛 𝙄 𝙧𝙚𝙣𝙩 𝙤𝙪𝙩 𝙢𝙮 𝙝𝙤𝙢𝙚 𝙤𝙧 𝙨𝙥𝙖𝙧𝙚 𝙧𝙤𝙤𝙢?

If you’re charging people to stay in your house, apartment, or even just a spare bedroom, that income may need to be reported on your tax return.

In the eyes of the IRS and state taxing authorities, you’re acting as a landlord once guests are paying to stay there.

But the tax treatment depends heavily on your personal use of the space.

Two questions to think about:
1. How many days did guests stay there?
2. How many days did you use the property yourself?

So if you’re renting out part or all of your home, don’t just look at how much money came in.

Your guest days and personal-use days matter too. ... See MoreSee Less

First State CPAs and Associates

5 days ago

"𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗼𝗳𝗳𝗲𝗿 𝗮 𝗿𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗽𝗹𝗮𝗻 𝗶𝗻 𝗺𝘆 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?"

About 42% of full-time working Americans don’t have access to a retirement plan. And as a business owner, you have the power to influence that statistic.

If you've avoided offering a plan because of the administrative burden, it may be worth taking another look.

Under the SECURE 2.0 Act, eligible small businesses may qualify for:
1. A startup cost credit covering up to 100% of eligible administrative and employee education costs.
2. A credit that may help offset employer contributions for qualifying employees.
3. A separate credit for adding automatic enrollment.

But don’t add a retirement plan just to chase tax credits.

What we need to consider is: does the plan fit your cash flow and your long-term business goals?

Let's run the numbers and figure out whether a retirement plan makes sense for your business. ... See MoreSee Less