Cornerstone Professional Accountants, PC

02/13/2026

📣 Colorado Seniors: Don’t Miss This Property Tax Reduction for 2026

If you’re a Colorado senior who previously received the Senior Property Tax Exemption and moved between Jan 1, 2020 and Dec 31, 2025, you may still qualify for property tax relief on your new primary home.

✅ What’s the benefit?
50% of the first $200,000 of your home’s value will not be taxed (with limited exceptions).

🏡 Applies to owner-occupied primary residences (single-family homes, condos, townhomes, duplexes, etc.).

📅 Deadline to apply: March 15
(Late applications accepted until July 15, but you lose appeal rights.)

💡 There are no income limits, and surviving spouses may qualify under certain conditions.

Applications must be submitted to your county assessor. The reduction will show up on your tax bill the following year.

This program is separate from income tax credits or rebates through the Department of Revenue.

If you or a senior you know recently moved, this is worth checking into. A lot of people don’t realize they can keep this benefit after relocating.

https://cdola.colorado.gov/press-release/dolas-division-of-property-taxation-encourages-eligible-colorado-seniors-to-take #:~:text=The%20Qualified%20Senior%20Primary%20Residential,residence%20for%202025%20and%202026.

12/15/2025

IRS Moves Toward All-Electronic Refunds: What You Need to Know

Your tax refund will no longer arrive by paper check. The IRS recently announced that it will stop issuing refund checks, with limited exceptions, and will require taxpayers to receive refunds electronically.
Why the Change?

Paper checks cost more, create security risks, and take much longer to process. In addition, the Trump administration directed all federal agencies to eliminate paper check payments.

What Stays the Same?

The IRS has not changed the process for filing your tax return. You will continue to file exactly as you do now.

How to Receive Your Refund

The fastest and most reliable way to receive your refund is through direct deposit into your bank account. Ninety-three percent of taxpayers already use direct deposit, and this change will not affect them.

If you currently receive refund checks, switch to direct deposit when you file your 2025 return. Simply enter your bank’s routing and account numbers on your tax form.

If you prefer not to use direct deposit, you can choose certain mobile apps or prepaid debit cards that provide a routing and account number.

The IRS will still issue a paper check if you request a waiver because you lack access to banking services or electronic payment systems. Keep in mind that paper checks take at least six weeks to process, while electronic refunds typically take about 21 days.


If You Need a Bank Account

You can open an account online through several resources:

The FDIC’s GetBanked website

The National Credit Union Administration’s Credit Union Locator

The Veterans Benefits Banking Program (for veterans only)

09/14/2025

⏰ Tax Tip Reminder: 3rd Estimated Payment Due Monday, Sept 15!

If you make quarterly estimated payments, your Q3 2025 payment is due September 15. Paying on time helps you avoid underpayment penalties.

How to pay:
• IRS Direct Pay (from checking/savings)
• EFTPS (Electronic Federal Tax Payment System)
• By mail with Form 1040-ES voucher

Need help calculating your amount or confirming what you’ve paid so far? Cornerstone can review your year-to-date and update your estimate.

📩 Message us or call the office today to make sure you’re covered.

07/15/2025

📣 Attention Taxpayers! New IRS Fact Sheet Available 📣

The IRS has just released Fact Sheet FS‑2025‑03 on the One Big Beautiful Bill Act (passed July 4, 2025), outlining several new tax deductions available for 2025 through 2028:

🧾 New Deductions for Working Americans & Seniors:

No Tax on Tips: Up to $25,000 deduction for tipped wages (phaseouts begin at $150K AGI individual / $300K joint).

No Tax on Overtime: Deduct qualified overtime pay—up to $12,500 ($25,000 joint).

Car‑Loan Interest Deduction: Up to $10,000 deduction on interest for loans on new, U.S.-assembled personal vehicles (phaseout starts at $100K AGI individual).

Senior Bonus Deduction: Individuals 65+ can claim an extra $6,000 deduction (phaseout starts at $75K AGI individual).

👉 These deductions apply to both itemizers and non-itemizers and are included on your 2025 tax return (filed in 2026)

✅ What You Should Do Now:

Review eligibility—especially income phaseouts.

Gather documentation: tip/overtime statements, loan interest forms, VIN, proof of age, etc.

Contact your CPA (that's us!) to ensure you don’t miss out on valuable tax savings.

📄 Read the full IRS fact sheet here:

FS-2025-03, July 14, 2025 — Provisions from the One Big Beautiful Bill Act, which was signed into law on July 4, 2025.

04/11/2025

🏡 Colorado First-Time Homebuyer Savings Account (FTHBSA) — A Tax-Smart Way to Save for Your First Home!

Are you or someone you know planning to buy a first home in Colorado? The FTHBSA offers exclusive state tax benefits designed to help first-time buyers save for a down payment and closing costs. Here’s what you need to know:

✅ Tax Perks: Interest earned on the account can be subtracted from your Colorado taxable income
✅ Contribution Limits:
• Up to $14,000/year for individuals
• Up to $28,000/year for joint filers
• Lifetime cap: $50,000 in contributions
✅ Use Funds for: Appraisals, closing costs, inspections, origination fees & more
✅ Eligible Beneficiaries: First-time buyers or those who haven’t owned a home in 3+ years
✅ Heads-Up: Funds must be used for qualified expenses or penalties may apply

💡 Whether you're buying your first home or helping a loved one do the same, this is a smart financial tool worth exploring.

Need help setting it up or reporting it properly at tax time? 📞 Contact us — we’re here to help you make the most of it!

03/27/2025

💰 State of Colorado Home Modification Tax Credit: Get Up to $5,000! 💰

If you or a family member have a disability, illness, or impairment, you may qualify for a Colorado state income tax credit to help retrofit your home for better accessibility and independence! 🏡♿

✅ Up to $5,000 non-refundable tax credit per eligible person
✅ Covers ramps, grab bars, bathroom/kitchen modifications & more
✅ Available for home modifications completed from 2019–2028
✅ Must meet adjusted household income & residency requirements

📌 Adjusted Household Income Limits by Year:
2019: $150,000 | 2020: $151,931 | 2021: $156,024
2022: $158,915 | 2023: $172,554 | 2024: $182,191

📋 Check if you qualify! Take the prequalification survey today. Questions? Email 📩 [email protected]

https://doh.colorado.gov/home-modification-tax-credit

03/20/2025

📢 Do You Own Vacant Land? 📢

Did you know you may have the option to elect Section 266 to capitalize carrying costs on vacant land? This IRS provision allows you to defer expenses like interest, taxes, and other carrying costs instead of deducting them in the current year—potentially optimizing your tax strategy!

🚨 Important Update: Starting in 2018, the state and local tax (SALT) deduction is limited to $10,000 ($5,000 for married filing separately), unlike previous years when there was no cap. This means taxpayers who previously deducted property taxes on unimproved, unproductive real property may now lose all or part of this deduction.

✅ Preserve valuable deductions
✅ Reduce taxable income in high-income years
✅ Improve long-term tax efficiency

Our team is here to help you navigate the best tax strategies for your investments. 📩 Contact us today to see if this election is right for you!

03/12/2025

IRS Rules for Expensing Property That Is Not a Betterment, Restoration, or Adaptation
The IRS allows landlords and businesses to immediately deduct property expenses instead of capitalizing them if they do not qualify as a betterment, restoration, or adaptation under IRS regulations (Reg. § 1.263(a)-3).

1. Deductible Repair & Maintenance Costs
Repairs and maintenance keep a property in normal operating condition without significantly improving it. These expenses are deductible immediately as they do not extend the property's useful life or increase its value.
✅ Deductible Examples:
Patching a roof (not replacing it)
Repainting walls
Fixing a plumbing leak
Replacing a few broken tiles
✅ Example Case:
A business replaces a worn-out roof membrane with a comparable one. Since this does not materially improve the property, it remains deductible as a repair.
2. IRS Definitions of Capital Improvements (Must Be Capitalized)
An expense must be capitalized and depreciated if it qualifies as a betterment, restoration, or adaptation:
Betterment (≥ 25% increase in strength, capacity, or efficiency):
Fixes a pre-existing defect
Expands property usefulness
Increases efficiency, quality, or strength
❌ Example: Upgrading an HVAC system to be 25% more efficient
Restoration (≥ 40% replacement of a system):
Replaces a major component
Restores property after significant damage
Returns property to "like-new" condition
❌ Example: Replacing 40% or more of a building’s electrical wiring
Adaptation:
Changes property for a new use
❌ Example: Converting a residential unit into a commercial office
3. IRS Safe Harbors for Immediate Deductions
If an expense does not meet the above criteria, landlords may deduct it immediately under these safe harbors:
✅ De Minimis Safe Harbor (DMSH)
Expense ≤ $2,500 per item ($5,000 with financial statements)
Cannot break large assets into smaller parts to qualify
Example: A $4,000 HVAC system cannot be split into components
✅ Routine Maintenance Safe Harbor (RMSH)
Recurring maintenance (inspection, cleaning, testing)
Replacement of worn parts with comparable ones
10-Year Rule: Must expect to perform maintenance within 10 years
No Betterments Rule: Cannot improve or restore property
✅ Safe Harbor for Small Taxpayers (SHST)
Property ≤ $1 million unadjusted basis (excludes land, land improvements, and personal property)
Annual repairs, maintenance, and improvements ≤ $10,000 or 2% of unadjusted basis
Income Requirement: Gross income < $10 million (3-year average)
Strategic Tip: Manage total repairs, maintenance, and improvement costs to stay within the safe harbor limit

03/11/2025

💰 Tax Tip: Reporting U.S. Savings Bonds Interest Annually 💰

Did you know you can choose to report interest on your U.S. Savings Bonds every year instead of waiting until you cash them in? This can help spread out your tax liability and avoid a big tax bill all at once!

✅ Option 1: Report Annually – Report the interest your bonds earn each year on your federal income tax return, even if you haven't cashed them yet. This spreads your tax liability over time. This is great for kids with bonds in their name!

✅ Option 2: Wait Until Maturity or Redemption – The default method is to defer reporting the interest until you cash the bond or it reaches final maturity. This means you'll pay tax on the total interest in one year.

🔄 Changing Your Reporting Method:

From Deferral to Annual Reporting: You can switch from deferring interest to reporting it annually without seeking permission from the IRS. However, once you make this change, you must apply it to all your savings bonds, report back interest when you make the change and continue with annual reporting in subsequent years.

From Annual Reporting to Deferral: If you've been reporting interest annually and wish to switch to deferring until redemption or maturity, you need to obtain permission from the IRS to make this change.
🎓 Using Savings Bonds for a 529 Plan
You may be able to avoid paying federal taxes on interest if you use your bonds to fund a 529 College Savings Plan or other qualified education expenses. To qualify:
✔️ The bond owner must be at least 24 years old when the bond is issued.
✔️ The funds must be used for tuition, fees, or contributions to a 529 or Coverdell ESA.
✔️ Income limits apply for tax exclusion.

📌 Pro Tip: This can be a great strategy for parents and grandparents saving for education!

Consult with us to see what works best for you. 💡

Direct File is a new IRS service that allows eligible people to prepare and file their tax return online, for free, directly with the IRS – saving them time and money. Learn more and file your taxes at: directfile.irs.gov

09/25/2024

Any child born or adopted on or after January 1, 2020 in Colorado
is eligible to receive a free $100 contribution to a CollegeInvest 529
savings account. Go to www.collegeInvest.org/first-step for details
and apply

07/11/2024

The Tax Cuts and Jobs Act (TCJA), passed in 2017, was one of the most extensive pieces of tax legislation to be passed in the last 30 years, touching many aspects of individual, corporate, and estate tax. However, most of TCJA's provisions are set to 'sunset' at the end of 2025 – an event that would have at least as much impact as TCJA's initial passage.

Households will experience the Tax Cuts and Jobs Act TCJA sunset in different ways, with income level, filing status, dependents, and QBI all factoring heavily.