About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Good news for small business owners:  Earlier this month, President Obama signed into law the Worker, Homeownership and Business Assistance Act of 2009 (Public Law Number P.L. 11-92). The passing of this legislation comes as quite a boon for small businesses who have experienced hardship due to the economy.

This new provision will enable any business with a net operating loss (NOL) to carry back  losses incurred in either 2008 or 2009 against income earned in the past five years. This is in contrast to the previous provision issued earlier this year that only applied to small businesses and only allowed for a carry back period of 2 years.

The provision is available to any Taxpayer who has experienced an NOL for a taxable year ending after Dec. 31 2007 and beginning before Jan. 1, 2010, except those who have received payments under the Troubled Asset Relief Program.

Under the procedure, Taxpayers may elect to carry back a  NOL for a period of three, four or five years to offset taxable income in those previous taxable years. A NOL carried back five years may not offset any more than 50 perfect of a taxpayer’s taxable income in the fifth preceding year.  However, this limitation applies only to the fifth year, and does not apply to the fourth or third preceding year.

If you would like to find out how this new provision can help your business, feel free to contact me. My Manhattan CPA firm specializes in assisting small businesses and individuals.  My practice has been serving clients in New York  City and abroad for over 7 years. If your small business is in need of an experienced CPA, I’m your guy.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Courtesy of www.federalhousingtaxcredit.com:

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

1. Who is eligible to claim the $8,000 tax credit?
   First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and on or before April 30, 2010. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment sale purchases. See the IRS website for more detail.

   However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.

   Persons who are claimed as dependents by other taxpayers or who are under age 18 are not qualified for the tax credit program.

2. What is the definition of a first-time home buyer?
   The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

   For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, IRS Notice 2009-12 allows unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. Are there any income limits for claiming the tax credit?
   Yes. For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. The income limits for claiming the tax credit were raised when the tax credit was extended. Are the higher limits retroactive?
   No. The new income limits are only applicable to purchases occurring after November 6, 2009.

   The income limits for sales occuring on or after January 1, 2009 and on or before November 6, 2009 are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

6. What is “modified adjusted gross income”?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

   To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.

7. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
8. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

   Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

9. How is this home buyer tax credit different from the tax credit that Congress enacted in early 2009?
   The tax credit’s income limits were increased, the documentation requirements were tightened, and the program’s deadlines were extended.
10. How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
    You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
11. What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

    It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.

12. I read that the tax credit is “refundable.” What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

    For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April, 30, 2010).

    In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    Yes. The tax credit can be combined with an MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
    No. You can claim only one.
16. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
17. Is a tax credit the same as a tax deduction?
    No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

    A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?
    No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.
19. Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

    Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

    In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.

20. HUD is now allowing “monetization” of the tax credit. What does that mean?
    It means that HUD allows buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.

    Under HUD’s guidelines, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans of up to $8,000. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.

    Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement. In addition, approved FHA lenders can purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.

    More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.

21. If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
    Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

    Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.

22. For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.

If you have any further questions about the First Time Home Buyer Tax Credit, or any other tax issue, do not hesitate to contact me. My CPA firm is dedicated to helping individuals and small businesses with all tax issues that may be confronted with. Whether you are located in Manhattan or abroad, my CPA firm is here for you.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

A word about CPA’s versus non-CPA’s

Unlike accountants, bookkeepers, and other non-CPA’s here in NYC, today’s Certified Public Accountants are qualified and skilled business advisors who are not just individuals that prepare your business and personal taxes.  In so many words, they are financial strategists who can help you chart the path that your business should be heading in.

NYC Business owners today are employing CPA’s for a variety of reasons over and above accounting and taxes.  In addition to these basic CPA functions, they can also assist you by determining what new product lines you can add for additional profits, helping with investment diversification, and providing other business and consulting services as well.

The value of hiring a CPA if you’re a freelancer in NYC

In addition to the above information, you should be aware that a CPA can help you in other areas, especially if you’re a freelancer (independent contractor or self-employed business person) here in NYC.  They can also assist you in the areas of estate, financial, retirement, and tax planning as well as providing you with advice and recommendations regarding your current accounting system.

What distinguishes a CPA from other accounting professionals or bookkeepers are the educational requirements as well as stricter licensing and qualification requirements.  It takes a considerable amount of work to achieve CPA designation compared to these other individuals.  Here are some questions to consider when you are deciding why you should hire a CPA if you’re a freelancer in NYC:

• First and foremost, does the individual you are interviewing hold a valid NYC CPA license?
• Is the CPA’s communication style and personality compatible with your business and personal accounting needs?
• Does the CPA possess the experience that meets your needs?

Services to consider if you’re a freelancer looking for a CPA

The accounting and tax requirements of a freelancer are considerably different from those of a regular business owner, especially where tax accounting, filing, and actual preparation are concerned.  Here are some services that you should look for when hiring a CPA here in NYC to facilitate your freelance accounting and tax needs:

• Analyzing your freelance operational needs and results
• The development of your monthly and/or quarterly reports
• Representing you before local, state, and federal tax authorities where being audited is concerned
• Advice regarding accounting, financial, and tax planning

Most importantly, never be hasty when making your decision.  Make sure that the CPA you are interviewing has all the proper credentials, can work around your schedule (not theirs), and provides with a list of their fees and the services you receive.  Additionally, you will want to inquire as to how vast their experience is regarding accounting and tax help for freelancers as well as how long they have been operating at the CPA level.  When you take all of the above into consideration, you will understand why you should hire a CPA if you’re a freelancer in NYC.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Courtesy of the NY Post/  LAURA ITALIANO:

The city’s biggest bagel maker will suffer a million-dollar hole in the middle of his finances if convicted of ground-breaking tax-cheat charges, the Manhattan DA said today.

H & H Bagels — an iconic, Upper West Side-based operation that boasts of making 80,000 bagels a day — stiffed the state on some $400,000 in taxes, DA Robert Morgenthau said in announcing the arrest of company founder Helmer Toro.

If convicted, the 59-year-old boiled-dough poobah, who founded the company in 1972, faces more than a baker’s dozen years in prison — up to 15 — on grand larceny, and could be hit with a $1.2 million bill for restitution, penalties and interest, officials said.

Bagel Stack Toro pleaded not guilty this afternoon in Manhattan Supreme Court, and was released on his own recognizance. He left without commenting on whether the charges were just a schmear campaign.

The bakery’s beloved bagels have garnered screen shout-outs by Woody Allen, who personally carried an H & H bag in “Manhattan Murder Mystery,” and Jerry Seinfeld, whose sidekick Kramer in one episode tried to return to work there after a 12-year strike.

Carrie Bradshaw of “Sex in the City,” Turtle of “Entourage” and Dwight of “The Office” have all indulged on air.

H & H busks bagels out of its original location at 2239 Broadway near 80th Street, and has its main bakery plant at 46th Street and 12th Ave. The company employs about 100 people.

Of the total $400,000 Toro is accused of pocketing, $369,318 was cash he collected through withholding taxes from employee paychecks but then never remitted to the state, said William Comiskey, the state’s deputy commissioner of tax enforcement.

Toro allegedly stole another $33,000 by underpaying his unemployment insurance taxes, said state Labor Commissioner Patricia Smith.

Six times, Toro would re-incorporate the bulk of his employees under a new company name — and so was able to pay unemployment insurance taxes under the lowest rate, reserved for brand new businesses, Smith said.

“This is the first prosecution of unemployment insurance tax rate manipulation in the country,” Smith said, noting that her office has recovered $20 million in civil penalties from 354 employers caught using the same growing kind of roll-over scheme.

Make sure that you don’t end up making the same mistakes. If you are having trouble managing the taxes of your small business, don’t commit tax fraud. Instead, hire an experienced CPA who can help you with your problems. My Manhattan based CPA firm has been helping individuals and small businesses with their tax problems for over 7 years. If you need tax advice, don’t hesitate to contact me.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

No small business owner wants to receive a letter from the IRS saying that they are going to be audited. But if this does occur, it is important that you are able to remain calm and take the appropriate action. While an audit is certainly a serous matter, it is not something you should be too worried about if you haven’t done anything wrong.

Audits are conducted for different reasons, and sometimes they are done at random.  The IRS is obligated to tell you why you have been audited. If they don’t tell you, ask. If it is due to an error or discrepancy in your taxes, chances are it can be worked out.  Contact your CPA immediately upon receiving notice of the audit.
They will be able to advise you on what actions to take, and will be able to represent you in front of the IRS and Tax Court if it comes to that.

Having a CPA is crucial during an audit. They understand the ins and outs of tax law, and they will make the experience much easier for you than if you tried to tackle the IRS on your own.  A seasoned CPA is much less likely to make mistakes than you are, and having one on your side will make the process much less stressful. Chances are the outcome will also end up being much more in your favor.

If you need the services of a CPA, do not hesitate to contact me. My Manhattan based CPA firm has been representing  small businesses, freelancers and individuals in front of the IRS for over 7 years. Whether you are based in New York or abroad, I can assist you.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

As a CPA who specializes in serving small businesses, I know that Payroll is something that many businesses perceive as a burden. But it doesn’t have to be.
Listed below are some commonly made payroll mistakes.  Avoiding these mistakes will make payroll much easier for you, and your CPA.

1. Missing filing deadlines.  This is an obvious mistake, but it is a very common one, and one that all businesses should avoid. Missing your filing deadlines can result in costly penalties, and no one wants that. If you have trouble keeping track of your  deadlines, create a calendar with all of them listed and make sure it is posted on your desk.

2. Incorrect filing of W-2 forms. There are various guidelines that you must obey when issuing your W-2s. These forms have to be issued no later than January 31st, and you have to make sure that all of the demographic information is correct and complete. If you are unsure of what information needs to be included on the W-2,
consult a CPA.

3. Improper data gathering. Make sure that all of your data is correct on all of your documents. Don’t wait until the last minute to check and see if all of your information is correct. Check all of your forms carefully, and make sure you have time to correct any mistakes that may have been made before your taxes are due.

4. Not saving payroll records. It is very important that you hold on to all of your payroll records. Not keeping track of them could cause you very serious grief later on. Generally, all records, including W-4 forms, time sheets and cancelled checks need to be held onto for four to six years.

5. Misclassification of workers. The number of businesses that are hiring temporary freelance work is growing, so it is imperative that you make sure that the correct forms are being filed. For instance, if you are employing an independent contractor,  different forms must be filed for them than that or a regular employee. In fact, filing the wrong forms on a freelancer could mean you end up owing more in employment taxes than you need to.

Avoiding these mistakes is essential for any business. If you find your business fitting into any of the above mentioned categories during tax time, the services of a CPA such as myself can help. My  Manhattan based CPA practice has been helping small businesses with payroll and other tax issues for over 7 years. I have assisted clients in just about every industry, and I have offered my CPA services to small businesses all over the country and the world.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Courtesy of http://abclocal.go.com/wabc/:  NEW YORK (WABC) — Appliance companies like Whirlpool, Electrolux and GE are all experiencing a severe slump in sales due to the weak home construction market. They are hoping a federal rebate program, much like “Cash for Clunkers,” could change all that. And that means it’s a golden opportunity for consumers.

Is your clothes dryer on its last spin cycle? There may never be a better time to upgrade to a more energy-efficient model. Officials say $300 million of federal stimulus money has been set aside for appliance rebates that will cover refrigerators, dishwashers and washers and dryers. Bob Markovich is with “Consumer Reports” magazine.

“You can get up to $250 rebate from your state per appliance,” he said. “So let’s say you get $100 rebate. You’re looking at additional utilities rebates, you’re looking at sometimes additional state rebates. And you’re also looking at big discounts, because appliance sales are something like 25 percent off what they were during the housing peak.”

To qualify, you must buy an Energy Star appliance. Fortunately, more than 50 percent of all appliances have an Energy Star rating, so you will have a big selection. In addition to the rebate, the new refrigerators or dishwasher could save you up to $100 a year in energy expenses. The program will launch in November, with government funds available starting November 30. With the Cash for Clunkers program, car dealers were overwhelmed by the response, selling close to 700,000 vehicles in just one month. Sales associates like Richard Conran at Sears are expecting a boost.

“We are actually, because we already have customers coming in to look specifically for the Energy Star items,” he said. “And now, since we have the rebates going, it’s probably going to increase a lot.”

Sears is so convinced there is going to be a rush to buy appliances under the government program, they have set up three computers so customers can see exactly how much their rebate will be and file for it right in the store.

Rebates range from $50 to $200, but each state has their own program. Retailers will have all the details, plus don’t forget to check with your utility company, as many are offering additional rebates.

If you live in New York, you may also want to contact a CPA to help you understand how the rebate will effect you. Our Manhattan CPA firm can help you understand all New York State tax issues.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses