Robert P Russo CPA PC

Robert P Russo CPA PC A Certified Public Accounting Firm. Specializing in small businesses and self employed individuals.

An emergency fund isn't something you build once and forget. As your income, expenses, family, and financial goals chang...
08/31/2026

An emergency fund isn't something you build once and forget. As your income, expenses, family, and financial goals change, the amount you have set aside for unexpected expenses should change too 🚨💰

Whether you've recently purchased a home, started a business, welcomed a new family member, or experienced changes in your income, now is a good time to revisit your emergency savings strategy. Having an adequate financial cushion can help you manage unexpected expenses without disrupting your long-term financial plan.

See how you can plan for your emergency fund: https://www.robertprussocpa.com/revisit-your-emergency-fund-goals/

The cost of caring for an aging parent or loved one can add up quickly, but you may be able to receive tax relief if cer...
08/27/2026

The cost of caring for an aging parent or loved one can add up quickly, but you may be able to receive tax relief if certain IRS requirements are met.

Depending on your situation, some elder care expenses, including qualifying medical costs, may be deductible. Eligibility often depends on factors such as whether your loved one qualifies as a dependent, your income, and the type of expenses incurred. Understanding these rules can help you make informed financial decisions while supporting those who matter most.

In our latest blog, we explain when elder care expenses may qualify for a tax deduction, what records you should keep, and key considerations before claiming these costs on your tax return.

🔗 https://www.robertprussocpa.com/can-you-deduct-elder-care-costs/

Owning a vacation home can provide additional income, but it can also create unexpected tax consequences if you don't un...
08/25/2026

Owning a vacation home can provide additional income, but it can also create unexpected tax consequences if you don't understand the rules 🏠☀️

How your rental income is taxed depends on how often you rent the property and how many days you use it personally throughout the year. The IRS has different guidelines that determine what income must be reported, which expenses can be deducted, and when a property is considered a personal residence versus a rental property.

Whether you rent your vacation home occasionally or throughout the year, proper planning can help you maximize deductions, remain compliant, and avoid surprises at tax time.

See how renting out your vacation home could affect your taxes by visiting our blog.

Turning a hobby into a side hustle can be exciting, but from the IRS's perspective, not every money-making activity qual...
08/20/2026

Turning a hobby into a side hustle can be exciting, but from the IRS's perspective, not every money-making activity qualifies as a business.

The IRS has specific rules to determine whether your venture is a legitimate business or simply a hobby. That distinction matters because it affects what expenses you can deduct and how your income is taxed. Factors such as your intent to make a profit, the way you operate the activity, and whether you keep accurate books and records all play a role ✅

If you earn income from a side business, freelance work, or a passion project, understanding these rules can help you avoid costly tax surprises and ensure you're taking the deductions you're entitled to.

Learn how to avoid the IRS hobby tax trap and what steps you can take to protect your business: https://www.robertprussocpa.com/how-to-avoid-the-irs-hobby-tax-trap-with-your-side-hustle/

08/19/2026

Here are four things that may catch the attention of the IRS or New York State.

First, S corporation owners taking an unreasonably low salary while taking large distributions.

Second, claiming significant rental real estate losses without understanding the very different rules that apply to short-term versus long-term rentals.

Third, paying independent contractors and failing to issue required 1099 forms.

And fourth, if you're using 1099 contractors, especially in New York, make sure you understand your workers' compensation obligations. We've seen businesses face substantial penalties simply because they didn't have the proper coverage in place.

The good news? These issues are often preventable with proper planning and documentation.

If any of these situations sound familiar, now is the time to review your tax and compliance strategy before the IRS or New York State does.

08/19/2026

Here are four things that may catch the attention of the IRS or New York State.

First, S corporation owners taking an unreasonably low salary while taking large distributions.

Second, claiming significant rental real estate losses without understanding the very different rules that apply to short-term versus long-term rentals.

Third, paying independent contractors and failing to issue required 1099 forms.

And fourth, if you’re using 1099 contractors, especially in New York, make sure you understand your workers’ compensation obligations. We’ve seen businesses face substantial penalties simply because they didn’t have the proper coverage in place.

The good news? These issues are often preventable with proper planning and documentation.

If any of these situations sound familiar, now is the time to review your tax and compliance strategy before the IRS or New York State does.

Welcome back to our tax terms series, where we simplify common tax concepts that can have a big impact on your financial...
08/17/2026

Welcome back to our tax terms series, where we simplify common tax concepts that can have a big impact on your financial strategy 💸

This month's term: Material Participation

Material participation refers to the level of involvement you have in a business or income-producing activity. The IRS uses specific tests to determine whether you're actively involved or simply a passive investor.

Why does it matter? Because material participation can determine whether your income or losses are treated as active or passive for tax purposes. This distinction affects whether certain losses can be used to offset other income and can play a significant role in tax planning for business owners and real estate investors.

If you own a business or investment property, understanding the material participation rules can help you maximize deductions while staying compliant with IRS regulations.

Have a tax term you'd like us to explain next? Let us know in the comments.

For many homeowners, their home is their largest financial asset. A reverse mortgage can provide access to that equity w...
08/13/2026

For many homeowners, their home is their largest financial asset. A reverse mortgage can provide access to that equity without requiring the sale of the home, but it's a decision that should be made with a full understanding of the financial and tax implications.

While reverse mortgage proceeds are generally tax-free because they're considered loan advances rather than taxable income, there are important factors to consider, including interest deductibility, estate planning, ongoing homeowner responsibilities, and how the loan may affect your long-term financial goals. It's not the right solution for everyone, but in certain situations, it can be a valuable retirement planning tool.

Read our latest blog to learn how reverse mortgages work, who may qualify, and the key advantages and risks to consider before making a decision: https://www.robertprussocpa.com/reverse-mortgages/

Selling an investment property doesn't always mean you have to pay capital gains taxes immediately 🏠A Section 1031 Like-...
08/12/2026

Selling an investment property doesn't always mean you have to pay capital gains taxes immediately 🏠

A Section 1031 Like-Kind Exchange allows qualifying real estate investors to defer capital gains taxes by reinvesting the proceeds into another investment property. When structured properly, this strategy can help preserve capital, increase purchasing power, and support long-term portfolio growth.

The rules, however, are strict. Missing key deadlines, failing to use a qualified intermediary, or misunderstanding what qualifies as "like-kind" property can jeopardize the tax benefits. That's why planning before the sale is just as important as the transaction itself.

In our latest blog, we break down how 1031 exchanges work, important deadlines to know, and strategies that can help real estate investors maximize this powerful tax planning tool.

Read the full article here: https://www.robertprussocpa.com/section-1031-like-kind-exchanges/

Summer is full of milestones, vacations, seasonal jobs, and home projects, but many people don't realize these activitie...
08/11/2026

Summer is full of milestones, vacations, seasonal jobs, and home projects, but many people don't realize these activities can have tax implications long after the season ends ☀️

Whether you're getting married, sending your child to summer day camp, taking on seasonal work, or traveling for business, the decisions you make today could affect your next tax return. Understanding these rules now can help you avoid surprises and potentially take advantage of valuable tax benefits.

Read our latest blog to learn which common summer activities may impact your taxes and what you can do now to stay prepared.

🔗 https://www.robertprussocpa.com/summer-activities-that-could-impact-your-next-tax-return/

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