Arsenault and Cline, CPAs, Inc.

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Arsenault and Cline, CPAs, Inc.

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07/15/2026

If you rent out your primary or secondary residence for no more than 14 days this year, you may be eligible for a tax break known as the “Augusta rule.” The rule allows eligible homeowners to temporarily rent out their homes without reporting the rental income on their personal tax returns. Homeowners typically take advantage of the rule when renting their homes to tourists. Business owners who rent their homes to their businesses for short, event-driven occasions can potentially deduct the rent paid as a business expense while excluding the rental payments from their individual taxable income. But strict compliance with IRS rules is essential. Contact us to learn the details.

07/14/2026

Within the last two years, the IRS’s Criminal Investigation (IRS-CI) division has seen an increase in fraudulent activity targeting elderly taxpayers. In fiscal year 2025 alone, IRS‑CI initiated 97 new elder fraud investigations. And halfway into the current fiscal year, investigators have opened an additional 64 cases. IRS-CI says one of the most common schemes is government impersonation. This is where scammers pose as IRS officials and threaten arrest unless an immediate payment is made. Another is lottery and sweepstakes fraud. Here, victims are told they’ve won a monetary prize but must first pay taxes or fees on the winnings. For more information from IRS-CI: https://bit.ly/4eiV2uJ

07/12/2026

Many people wait until year end to think about tax-deductible charitable donations. But summer is a great time to clean out your closets and donate clothing and home goods to local nonprofits. In 2026, taxpayers who itemize can deduct cash and noncash contributions that exceed 0.5% of their adjusted gross income (AGI). For donations valued at $250 or more, be sure to get a receipt from the charity that includes a description of the items. Finally, though nonitemizers can deduct up to $1,000 in cash contributions to charity in 2026, they can’t deduct noncash donations.

07/11/2026

It may seem like a daunting task, but you have the right to raise an objection with the IRS and receive a timely response if you disagree with its position regarding your taxes. One of the 10 fundamental rights under the Taxpayer Bill of Rights is the “right to challenge the IRS’s position and be heard.” If the IRS notifies you of a math or clerical error on your tax return, you have 60 days to inform the IRS of your objection and provide documentation that can help correct the error. If the IRS agrees with your argument, it’ll make the necessary tax adjustment to your account and mail you a correction notice. For more information from the IRS: https://bit.ly/4xKmRUb.

07/10/2026

If you’re getting married, or were recently married, congratulations! Taxes are likely the furthest from your mind, but there are a few tax-related chores you need to consider. For example, next year, for 2026, you’ll be filing your first tax return as a married person. That could affect the amount of tax you should have withheld from your paycheck. Use the IRS Withholding Estimator (https://bit.ly/4p4YAoh ) to check. Then provide your employer with a new Form W-4. If your last name has changed, notify the Social Security Administration, which will inform the IRS. You and your new spouse should also review financial accounts, insurance coverage, estate plans and tax strategies. We can help.

07/09/2026

If you’re a schoolteacher, you’re probably enjoying a well-deserved summer break. But consider using some of your free time to organize tax records. You may be familiar with the $350 classroom expense deduction, but you can’t claim it unless you know what you’ve spent out of pocket. If you buy classroom supplies this summer, make sure you hold on to the receipts. New for 2026, you can claim an itemized deduction for eligible expenses exceeding the $350 limit. This deduction has no cap, but it will save you tax only if your total itemizable deductions for the year exceed the standard deduction for your filing status. Additional rules apply to both breaks. Contact us for details.

07/08/2026

Individuals betting on the FIFA World Cup need to understand the potential tax obligations. Gambling winnings are considered taxable income. As such, they’re subject to federal rates up to 37%, and state income tax may also apply. Losses can be claimed as federal itemized deductions, limited to 90% of losses and capped at winnings. Wagers made via online prediction markets may not be subject to standard gambling tax rules, but the IRS hasn’t explicitly provided guidance on the issue. Not all sports bettors receive W-2G tax forms, so you should report any winnings on your tax return, regardless of the wager platform.

07/06/2026

Summer often brings yard sales, storage cleanouts and online sales of unwanted items. If you receive payments through third-party payment apps or online marketplaces such as PayPal, Venmo or eBay, you may receive a Form 1099-K reporting your total payments. This form is required if the payments you receive via the platform during the year exceed $20,000 in more than 200 transactions, though some platforms may issue you one at lower amounts. Form 1099-K reports gross payments, not profit. You generally owe tax only if you sell items for more than you paid for them. (Losses aren’t deductible.) The IRS receives copies of Form 1099-Ks, so keep good records. We’re here if you need guidance.

07/05/2026

Can taxpayers deduct alimony payments? It depends on when you signed your divorce or separation agreement. If it was made in 2019 or later, you can’t deduct alimony (and alimony’s not included in the recipient’s taxable income). But these payments are generally deductible (and taxable to the recipient) if they’re subject to an agreement made before 2019 — unless it was modified. As for child support payments, they aren’t deductible if you make them or considered taxable income if you receive them, regardless of when the agreement was signed. If you’re going through a divorce, consult us. We can work with your attorney to manage tax issues and minimize your tax burden.

Address

55 Ferncroft Road, Ste 310
Danvers, MA
01923

Telephone

+17815935400

Website

http://www.arsenaultclinecpas.cpa/

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