Letter from the Franchise Tax Board re Access to Your Account

The State of California’s Franchise Tax Board (FTB) recently enhanced the “MyFTB” program. The upgraded process is designed to better protect your account information and privacy.
 
As part of our preparation of your tax returns, we check the FTB website to confirm that your current year estimated tax payments and prior year tax overpayments are accurately reflected in your account, and can contact you and the FTB immediately if corrections are needed.  This helps to ensure that your California tax return is correct to minimize delays in processing.
 
As a result, each year we are required to use the registration process allowing us to add you as a client to our account in the MyFTB system.  When we do, the FTB will automatically generate and send a letter to you, the taxpayer, notifying you that access to your account information has been given to a specific tax preparer from our firm.  Please be aware that we are only given access to your tax information, not to actual payments or refunds.
 
The letter you receive, unfortunately, will not include our firm name to help identify the person requesting this information. To help in this manner, the CPA’s from our firm who may be accessing your account are listed below with further information about them to be found on our website, Roeser CPA - About Us .
 

·        Bill Roeser, CPA

·        Lori Augenstein, CPA

·        Michelle Gutierrez, CPA

·        Raymond Medrano, CPA, CVA

·        Alesya Romanovich, CPA

·        Joy Isheim, CPA

 
Please do not hesitate to contact our office should you have any questions regarding this matter.

Home Office Deduction

Bill Roeser, CPA

The Home Office Deduction

One of the great things about setting up a home office is that you can make it as comfy as possible. Assuming you’ve done that, another good idea is getting comfortable with the home office deduction.

To qualify for the deduction, you generally must maintain a specific area in your home that you use regularly and exclusively in connection with your business. What’s more, you must use the area as your principal place of business or, if you also conduct business elsewhere, use the area to regularly conduct business, such as meeting clients and handling management and administrative functions. If you’re an employee, your use of the home office must be for your employer’s benefit.

The only option to calculate this tax break used to be the actual expense method. With this method, you deduct a percentage (proportionate to the percentage of square footage used for the home office) of indirect home office expenses, including mortgage interest, property taxes, association fees, insurance premiums, utilities (if you don’t have a separate hookup), security system costs and depreciation (generally over a 39-year period). In addition, you deduct direct expenses, including business-only phone and fax lines, internet, utilities (if you have a separate hookup), office supplies, painting and repairs, and depreciation on office furniture.

But now there’s an easier way to claim the deduction. Under the simplified method, you multiply the square footage of your home office (up to a maximum of 300 square feet) by a fixed rate of $5 per square foot. You can claim up to $1,500 per year using this method. Of course, if your deduction will be larger using the actual expense method, that will save you more tax. Please call us with any questions.

ROESER ACCOUNTANCY CORP -  CPA's & Business Advisors

Fresno, CA