Helping Mid-Market Multi-Location Restaurants Reach the Next Level

Helping Mid-Market Multi-Location Restaurants Reach the Next Level

So, you’ve made the leap from a single location to multiple restaurant locations. As a business owner, this is an exciting period of growth and expanded opportunity. However, as we all know, scaling your business also comes with new challenges and additional considerations. Juggling the demands of multiple locations can be overwhelming, and outsourcing some of your business’s key functions is often the best option for maintaining quality across all locations. Partnering with the right accounting firm can go a long way in supporting your most critical needs as your business expands. If you’re looking to grow your business, whether that means expanding to additional locations or to franchise-level, here’s how RBT CPAs can help you reach the next level.

Tackling the Challenges that Come with Growth

Scaling your restaurant business comes with added operational challenges, legal considerations, and tax complexities. When you have multiple locations, diligent financial management and careful planning are critical. Outsourcing your business’s financial functions can help to ensure that all of your restaurants are operating optimally, profitably, and in compliance with applicable laws. Our restaurant accounting team at RBT CPAs is here to support you while you focus on managing the challenges and opportunities that come along with growth.

More than Just Accounting

At RBT, we ask you what your goals are as a business owner, both monetarily and personally. We then work with you to create a plan to help you achieve these goals through timely and accurate financial statements, profit margin management, tax planning, compliance, budgeting, financial forecasting, succession planning, and more. We also offer individualized support in managing your restaurant’s operations. For example, we help owners use their Point-of-Sale systems to identify top servers, optimize table turnover rates, and determine which menu items provide the highest profit margin.

However, our firm offers much more than just accounting services. Together, RBT and its affiliates offer a whole range of professional services, including business advisory services, wealth management, estate planning, and retirement consulting. Our network of trusted professionals guides you through the day-to-day decisions that shape the long-term success of your business and secure the future for you and your family. With the right team working in tandem and contributing expertise in their respective fields, achieving your business goals becomes far more attainable.

RBT: Where Clients are Treated Like Family

At RBT, we truly believe our team and our clients are better together. When you partner with us, you become a part of our family—and we consider ourselves a part of yours. At RBT, we look to create a long-lasting business and personal relationship with each restaurant owner, helping you to achieve your personal and professional goals. We’ll help you with the small details and the bigger picture. Knowing you have a team that is invested in your goals and needs allows you to concentrate on operating and growing your restaurant. Give us a call today and find out how we can be Remarkably Better Together.

Performance Period for SLFRF Funds Now Closed: Closeout Guidance for Municipalities

Performance Period for SLFRF Funds Now Closed: Closeout Guidance for Municipalities

Created under the American Rescue Plan Act (ARPA) of 2021, the State and Local Fiscal Recovery Funds (SLFRF) program allocated $350 billion in federal aid to state, local, and tribal governments to support their response to and recovery from the COVID-19 pandemic. With the performance period for SLFRF funds officially closing on December 31, 2026, the U.S Department of the Treasury has released guidance regarding closeout procedures for SLFRF recipients. Below are the steps, provided by the Treasury Department, that government entities are advised to take to prepare for and expedite the SLFRF closeout process.

Closeout Checklist for Municipalities

  1. Confirm the entirety of your SLFRF award has been obligated and expended.
    • You can access the Treasury Portal through Login.gov at https://portal.treasury.gov/compliance/s or through ID.me at https://portal.treasury.gov/cares/s/slt.
    • Once logged in to the Treasury Portal, confirm your allocation is fully expended.
  2. Make sure you have completed all reporting requirements.
    • You can check your reporting status in the Treasury Portal.
    • Confirm that your latest Project and Expenditure (P&E) Report has been submitted.
  3. Sign and upload your award terms and conditions agreement.
    • A signed copy of your award terms and conditions agreement must be uploaded to the Treasury Portal before closeout.
    • If your agreement is missing or in “draft” status, a signed copy must be submitted.
  4. Confirm that your SAM.gov registration is active.
    • SLFRF recipients must maintain active registration in SAM.gov until all required final reports are submitted.
    • You can check the status of your municipality’s SAM.gov registration here.
    • To renew registration, your SAM.gov Entity Administrator can follow the guidance posted here. Do not create a new SAM registration.
    • Only your SAM.gov Entity Administrator can renew registration.
    • If your registration is currently active, take note of the registration expiration date.
  5. Verify that your Treasury Portal roles are up to date.
    • The Treasury Portal requires the designation of three roles: Account Administrator, Authorized Representative, and designated point(s) of contact.
      • The Account Administrator may initiate and submit the reports required for closeout.
      • The Authorized Representative may also initiate and submit the reports required for closeout. This must be an individual with legal authority to bind the municipality, such as the CEO.
      • The designated point(s) of contact will receive notifications via email regarding the status of the Final Report. The designated point of contact may update and complete P&E Reports, but cannot submit them. Only the Account Administrator and Authorized Representative may submit P&E Reports.
    • These roles can be filled by three different people, or one designee can fill multiple roles.
    • All designees must register with login.gov or ID.me and use the same email to access the Treasury Portal.
    • Communicate with your municipality’s IT department to ensure that emails from “@treasury.gov” are not blocked.
    • Confirm that the contact information for each designee is correct.

Initiating and Confirming Closeout

After you have received an invitation from the Treasury and have completed the above checklist, you can initiate and confirm closeout in the Treasury Portal. This involves reviewing and certifying that the reported data is accurate, confirming the Final Report, submitting optional impact stories, and finally confirming closeout. Step-by-step instructions for this process can be found in this Closeout How-to Guide from the Department of the Treasury. After confirming closeout, you will be notified that your closeout is in progress. Treasury will then review your request, notifying you if additional information is needed. Finally, you will receive a “Notice of Final Closeout” via email when your SLFRF awards have been closed out.

Partner With RBT

While you manage the closeout process for SLFRF funds, let RBT CPAs’ experienced professionals support your municipality’s accounting functions. RBT’s specialized government accounting team provides expert guidance to fit your government’s unique tax, accounting, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

Beyond Compliance: The Importance of Accurate LM-2 Reporting

Beyond Compliance: The Importance of Accurate LM-2 Reporting

Each year, unions in New York State are required to file one of three annual financial reports: Form LM-2, LM-3, or LM-4. Each of these forms requires varying degrees of financial detail, with the form type determined by a union’s annual gross receipts. This article will focus primarily on LM-2 reporting; however, whichever form your union is required to file, accurate and timely reporting is essential—not only for compliance purposes, but also to support transparency within your union.

What is Form LM-2?

Form LM-2 is the most detailed annual financial report required for unions by the DOL’s Office of Labor-Management Standards (OLMS). Unions with total annual receipts of $250,000 or more and those in trusteeship are required to file Form LM-2.

Form LM-3 and Form LM-4

Unions with total annual receipts of less than $250,000 that are not in trusteeship must file Form LM-3 (a less detailed annual report), while unions with less than $10,000 in total annual receipts that are not in trusteeship must file Form LM-4 (an abbreviated annual report).

LM-2 Reporting Requirements

Form LM-2, the most detailed annual financial report, requires unions to submit various informational and financial items, along with supporting schedules. Some of the information required includes rates of dues and fees, receipts and disbursements, assets and liabilities, disbursements, and schedules of payments and loans. LM-2 forms also provide information about membership status, officer and employee compensation, spending on political activities and lobbying, contributions and grants, governance information, and more.

Why are accurate reports so important?

The purpose of filing LM-2 (or LM-3 or LM-4) reports is to disclose information about a union’s financial activities, provide important insights, and promote accountability and transparency within the organization. Accurate and timely completion of reports ensures that unions maintain compliance with DOL regulations. Inaccurate or incomplete forms can lead to legal issues and threaten a union’s credibility. However, the importance of accurate reporting extends beyond compliance. Annual financial reports, which are publicly available, help members understand how their union operates and how union resources are managed. The information in these reports supports informed decision-making and helps maintain trust between members and union leadership by serving as a check against potential financial mismanagement. These reports can also help to facilitate productive communication between employers and unions by offering employers insight into union operations.

Accounting Services You Can Rely On

Reliable year-round accounting is key to accurate LM-2 reporting. RBT CPAs’ union team is here to support your union’s accounting needs, whether it’s helping you prepare for audits, reviewing your internal controls, or providing full CFO services. Give RBT CPAs a call today and find out how we can be Remarkably Better Together.

NYS Sales Tax Obligations: What Owners and Operators of Short-term Rentals Need to Know

NYS Sales Tax Obligations: What Owners and Operators of Short-term Rentals Need to Know

Clients often come to us with questions regarding sales tax on short-term rentals—we’re here to answer those questions for you. In brief, short-term rental units in New York are subject to the same sales tax requirements as hotels. Owners and operators who do not use a booking service must charge sales tax on sales of short-term rental unit occupancy when the rental rate exceeds $2.00 per unit per day. Booking services such as Airbnb and VRBO generally collect and remit sales tax directly on behalf of hosts. Whether you use a booking service to facilitate sales or not, you should be aware of the requirements related to sales tax for short-term rentals in New York State.

What is considered a short-term rental?

A short-term rental unit is defined as all or a portion of a building used for the lodging of guests. Short-term rental units include (but are not limited to) all or a portion of the following:

  • a house
  • an apartment
  • a condominium
  • a cooperative unit
  • a cabin, cottage, or bungalow
  • a similar furnished living unit

Requirements for Owners and Operators of Short-Term Rentals

Booking services and certain operators of short-term rentals located in New York are required to:

  1. Register as a sales tax vendor through New York Business Express
  2. File sales tax returns
  3. Collect and remit the sales tax and unit fee (if applicable)

Exceptions: When You Don’t Need to Collect Sales Tax

  • Operators of short-term rentals in New York State are exempt from collecting sales tax if rent out their property for three days or less in the calendar year and do not use a booking service to facilitate the sales.
  • Operators are exempt from collecting sales tax if a booking service facilitates all sales of unit occupancy. In this case, the booking service must provide the operator with a Booking Service Certificate of Collection or a publicly available agreement stating that the booking service will collect sales tax and unit fees.
  • An operator does not need to charge sales tax for guests who are permanent residents. A guest is considered a “permanent resident” once that guest has stayed in the rental unit for at least 90 consecutive days. Guests are required to pay state and local sales tax until that time. However, in New York City, a guest must continue to pay local sales tax until that guest has stayed in the unit for at least 180 consecutive days. Once permanent residency is established, the unit operator may credit the guest’s account or refund the tax already paid.
  • Purchasers who provide an operator with a completed exemption certificate are exempt from paying sales tax on unit occupancy. Examples of guests that qualify for an exemption include certain organizations such as charitable organizations, youth sports groups, and religious groups, federal and New York State government employees traveling on official business, and authorized representatives of veterans posts or organizations.

Reach out to Our Real Estate Accounting Team for Guidance

If you own or operate a short-term rental unit in New York, it’s important that you’re aware of your obligations regarding sales tax. RBT CPAs’ real estate accounting team can help you navigate this and all other tax and accounting-related matters. Give us a call today and find out how we can be Remarkably Better Together.

Considering Opting in to the NYS Pass-through Entity Tax for 2026? Here’s What Healthcare Practices Need to Know

Considering Opting in to the NYS Pass-through Entity Tax for 2026? Here’s What Healthcare Practices Need to Know

For New York-based medical and dental practices structured as partnerships or S corporations, 2026 offers another opportunity to elect in to New York State’s Pass-Through Entity Tax (PTET). But what exactly is the PTET, what are the potential benefits of opting in, and how can you make an election for the 2026 tax year? Let’s get into it.

Firstly, what is a pass-through entity?

A pass-through entity is a business entity in which income “passes through” to the business owner(s) and is therefore taxed at individual federal income tax rates, rather than at the entity level. Examples of pass-through entities include partnerships, limited liability companies (LLCs) taxed as partnerships, and S corporations.

What is the NYS Pass-through Entity Tax (PTET)?

The NYS PTET is an optional entity-level tax that partnerships and S corporations in New York State can elect to pay as a workaround for the federal limit on state and local tax (SALT) deductions.

Potential Benefits for Healthcare Practices

  1. Federal Tax Deduction at the Entity Level

Because PTET is treated as a deductible business expense for federal income tax purposes, it reduces the entity’s ordinary income before it passes through to owners. This may lower overall federal tax liability for physicians and dentists whose personal SALT deductions are otherwise capped.

  1. NYS PTET Credit

Owners of an electing entity generally receive a refundable PTET credit on their New York State individual income tax return. This offsets state tax paid at the entity level.

  1. Cash Flow and Planning Opportunities

For multi-owner practices, PTET can help align tax payments at the entity level and may simplify tax planning.

  1. Considerations Around Self-Employment Tax (Partnerships)

For partners in medical and dental practices taxed as partnerships, PTET may reduce self-employment taxes.

How do you opt in to the PTET?

You can make your election online via the New York Department of Taxation and Finance through your entity’s Business Online Services account. Only an authorized person can make the election on behalf of your business—your accountant or tax professional cannot make the election for you. For partnerships, an authorized person includes any member, partner, owner, or other individual with authority to bind the entity and sign returns. For S corporations, an authorized person includes any officer, manager, or shareholder authorized to make the election.

What Is the Deadline for 2026?

The deadline for making the election is March 15, 2026. Eligible entities can opt in any time from January 1 to March 15. PTET elections must be made annually, so if you are opting in for 2026, you will need to make your election via your NYS Business Online Services account by March 15—even if you have previously opted in for prior years.

When are payments due?

Entities that opt in to the PTET must make quarterly estimated payments via the state’s online system by March 15, June 15, September 15, and December 15.

Is PTET Right for Your Practice?

Whether PTET makes sense depends on several factors, including:

  • Owner income levels
  • Residency of owners
  • Allocation structure
  • Existing state tax exposure
  • Practice profitability projections

For high-income physicians and dentists in New York, PTET often produces meaningful federal savings, but you should be discuss with your tax advisor before electing.

Consult with RBT CPAs Healthcare Accounting Team

Electing in to PTET is a strategic tax decision. Our Healthcare Accounting Team at RBT CPAs works with privately owned medical and dental practices located in multiple states to evaluate PTET elections and can help you determine whether opting in to the PTET for 2026 is the right choice for you. Give RBT CPAs a call today and find out how we can be Remarkably Better Together.

How Artificial Intelligence Could Improve Patient Care While Also Saving Your Practice Money

How Artificial Intelligence Could Improve Patient Care While Also Saving Your Practice Money

The rise of AI is revolutionizing almost every industry, from finance to manufacturing to healthcare. Veterinary practices are already experiencing the impact of artificial intelligence, a force poised to transform the industry entirely. This article explores the diverse applications of AI within veterinary practices, from clinical operations to financial management.

Uses of AI in Veterinary Medicine

Artificial intelligence has uses that span all areas of veterinary medicine. This visual from an article published in Veterinary Medicine and Science groups the use of AI in veterinary sciences into four categories: clinical practice, biomedical research, public health, and administration. Here are just some of the applications of AI in veterinary hospitals:

  • Diagnostic imaging and disease detection: AI can assist doctors in detecting abnormalities in patient CT scans, MRIs, X-rays, and ultrasounds.
  • Predictive analytics: AI can analyze medical records to predict health issues and recommend preventive treatment plans.
  • Medical documentation: AI is able to transcribe audio from appointments and automate the creation of SOAP notes.
  • Veterinary research: AI is being used to analyze large datasets in medical research.
  • Education and training: Interactive AI-powered learning tools and simulation programs allow veterinary students to practice clinical skills in a virtual environment.
  • Administrative functions: AI enables the automation of various administrative tasks, including data entry, scheduling, client communications, and billing.

AI Applications in Practice Financial Management

By automating various administrative and financial functions, AI can help to reduce the chance of human error and the time it takes to complete tasks. In this way, AI has the potential to significantly improve the efficiency and profitability of your practice. From automating payroll to preventing lost revenue from missed charges, AI tools can help to save your practice time and money. Some key processes that AI can support and/or fully automate include invoicing, inventory management (monitoring stock levels, automatic ordering, etc.), financial reporting, payroll, and financial forecasting.

Challenges and Concerns

As with any emerging technology, there are certain risks and challenges associated with AI integration in veterinary practices. Some concerns include data quality issues due to very large and varied datasets, ethical concerns, a lack of regulatory oversight for the use of AI in veterinary medicine, the risk of skills erosion due to overreliance on AI tools, and the need for improved AI literacy among veterinary professionals.

Conclusion

Though AI integration will undoubtedly come with its challenges, this rapidly developing technology presents opportunities to optimize veterinary practice workflows, enhance patient care, and lighten the workload for veterinary professionals. While you consider how you might incorporate AI into your practice, let RBT CPAs support your accounting, tax, audit, and advisory needs. Our veterinary accounting team is here to answer all of your accounting-related questions and to help your business succeed. Call us today and find out how we can be Remarkably Better Together.

529 Plan versus Trump Account: Which Should You Choose for Your Child?

529 Plan versus Trump Account: Which Should You Choose for Your Child?

Recent legislative changes present new opportunities for American parents saving for their children’s future. 2025 saw both the expansion of 529 education savings plans and the creation of “Trump accounts,” a new type of investment account for children. Both of these investment accounts offer parents the opportunity to prepare for their children’s financial future—but which should you choose? Before we answer that question, let’s break down the key features of each plan.

529 Plans

A 529 plan is a tax-advantaged savings account that can be used to pay for qualifying educational expenses. Initially created as a way for people to save for college tuition, “qualified expenses” covered under 529 plans expanded in 2018 to include tuition for K-12 education as well. With the passage of the One Big Beautiful Bill Act (OBBBA) in July of 2025, 529 plan coverage has expanded even further to include additional educational expenses.

Below are the key details to know about 529 plans:

  • Money in 529 accounts grows tax-deferred.
  • Withdrawals for qualifying educational expenses are generally tax-free.
  • There are no annual contribution limits for 529 plans (some states have lifetime contribution limits).
  • S. residents of any income level are able to open a 529 account for a designated beneficiary, including a relative, friend, or themself.
  • Funds can be used for a variety of educational expenses, including (but not limited to) college tuition, K-12 tuition, books and supplies, testing fees, technology, expenses related to participation in registered apprenticeship programs, and certain expenses related to enrollment in a recognized postsecondary credential program.
  • Many states offer tax deductions or tax credits for 529 contributions.
  • Unused funds from a 529 plan can be rolled into a Roth IRA in the name of the beneficiary or transferred to other family members.
  • 529 plans offer multiple options for investment funds.

Trump Accounts

Created by the One Big Beautiful Bill Act (OBBBA), the “Trump account” is a new tax-deferred investment account for U.S. citizens under the age of 18. Parents can start to register for the new Trump accounts when they file their 2025 tax returns, but contributions will not begin until July 2026.

Here are the key details to know about Trump accounts:

  • Savings in Trump accounts grow tax-deferred.
  • Withdrawals are taxed as ordinary income.
  • Accounts opened for children born between January 1, 2025, and December 31, 2028, include a one-time $1,000 government contribution.
  • Contributions can be made by parents, relatives, employers, and other taxable entities, as well as non-profit and government entities.
  • Contributions to these accounts are capped at $5,000 a year per child (this amount will be indexed for inflation after 2027) and can be made each year until the child turns 18.
  • Distributions before the child turns 18 are generally prohibited.
  • Penalty-free withdrawals can be made once the account holder turns 59.5 years old. A 10% additional tax applies to withdrawals taken before age 59.5, with some exceptions, such as for first-time home purchases or higher education costs.
  • Funds in 529 accounts can only be invested in one U.S. stock index fund.

So…529 Plan or Trump Account?

Trump accounts and 529 accounts are both tax-advantaged tools designed for saving for your child’s future, but they serve different purposes. While Trump accounts offer a new savings tool for children, they are significantly more limited than 529 plans. The 529 program is well-established with a wide range of investment options, while the Trump account is a new program with investment restrictions and other limitations. In short, 529 plans remain the best way to save for a child’s education and future. However, parents of children born between 2025 and 2028 should still claim the “tax-free” federal deposit provided through the Trump account program.

For additional guidance related to tax-advantaged savings and investment plans, please don’t hesitate to reach out to our team at RBT CPAs. Our Trust, Estate, and Gift team is here to help you plan financially for your family’s future. Call us today and find out how we can be Remarkably Better Together.

How Agentic AI Is Taking Manufacturing Technology a Step Further

How Agentic AI Is Taking Manufacturing Technology a Step Further

Over the last several years, artificial intelligence has expanded and evolved to a point we may never have imagined was possible. The widespread adoption of traditional AI tools, followed by generative AI technology (like ChatGPT, Google Gemini, and Microsoft Copilot), has opened up a whole new world of possibilities for businesses, introducing vast opportunities to streamline everyday processes. Many in the manufacturing sector have been utilizing this technology for years—and are seeing tangible benefits. But generative AI isn’t the end of the story.

Recently, an even more advanced form of artificial intelligence, known as agentic AI, has taken center stage in the technology revolution. Agentic AI takes artificial intelligence a step further, giving rise to fully autonomous systems that can plan, reason, make decisions, and execute workflows. As you can imagine, this level of technology is expected to completely transform the world of manufacturing. The process has already begun as companies across the world actively adopt agentic AI. So, what exactly is agentic AI, and how can it be used in manufacturing to support operations and specifically financial processes? Let’s get into it.

What is agentic AI?

Agentic AI is a form of artificial intelligence comprised of agents that, as IBM describes it, “mimic human decision-making to solve problems in real time.” Unlike traditional AI systems, which require human intervention, agentic AI operates autonomously. Agentic AI models are able to plan and complete multi-step processes with minimal human supervision. These models can collaborate with other systems and software as well as humans.

Examples of Agentic AI Use in Manufacturing

Below are some examples of tasks that agentic AI can carry out autonomously:

  • Placing orders with suppliers and adjusting production schedules
  • Monitoring machinery, scheduling maintenance, and ordering replacement parts
  • Performing quality control and assurance processes, and addressing quality issues if they arise
  • Facilitating employee onboarding
  • Screening vendors and carrying out the vendor onboarding process
  • Managing inventory by predicting supply usage, tracking inventory levels, and initiating stock reorders when needed

How can agentic AI support your financial processes?

One area of operations that agentic AI can help to optimize is your company’s financial processes. Some financial functions that agentic AI can carry out with little human intervention include the following:

  • Invoice processing
  • Supply chain management
  • Financial forecasting
  • Account reconciliation
  • Payroll management
  • Financial reporting
  • Compliance monitoring
  • Fraud detection
  • Budget management

Some Caveats

Agentic AI, while an extremely powerful tool, is not exempt from potential shortcomings. Challenges that have been observed in these models include a lack of causal reasoning, the risk of “error cascades” that could compound inaccuracies, a lack of goal alignment between individual agents, unintended outcomes, and amplified security risk, to name a few.  So, agentic AI, while technically autonomous, still demands human oversight. Humans contribute the experience, ethical reasoning, and judgment that AI agents lack, and human authorization should be required for all high-stakes operational decisions. In short, a level of human oversight is necessary to safeguard your business’s systems and ensure accountability.

Work with RBT

While you consider the potential benefits and challenges involved in the adoption of agentic AI, let our manufacturing accounting team at RBT CPAs support your accounting, tax, audit, and advisory needs. Call us today and find out how we can be Remarkably Better Together.

Completed Contract Method: Now An Option for More Projects

Completed Contract Method: Now An Option for More Projects

You may have heard about the changes to the completed contract method under the One Big Beautiful Bill Act—but what do these changes mean for contractors?

The completed contract method (CCM) is an accounting method that enables construction companies to defer the recognition of income and expenses until a project is complete, allowing qualifying contractors to delay paying taxes on that income to a later year. In the past, this method of accounting was only available for smaller residential projects and contractors. However, due to changes to the tax law under the One Big Beautiful Bill Act, larger residential projects and contractors now also qualify for CCM. Here’s what you should know.

Methods of Accounting for Construction Projects

For some background, let’s take a look at the different methods of accounting used in construction. There are several methods, each with its own tax implications.

  1. Cash Basis Accounting: revenue is recognized at the time it is received, and expenses are recognized when they are paid.
  2. Accrual Basis Accounting: revenue is recognized as it is earned, and expenses are recognized when they are incurred.
  3. Percentage of Completion Method (POC): revenue and expenses are recognized based on the percentage of work completed during a certain period.
  4. Completed Contract Method (CCM): revenue and expenses are recognized only when a project is fully completed.

How have the CCM rules changed?

In short, the new tax law significantly expands allowable use of the completed contract method (CCM) for residential construction projects, opening this method up to more projects and contractors.

Prior to the OBBBA, the completed contract method was only available for small contractors and home construction contracts, applying to projects with four or fewer dwelling units. However, the OBBBA replaces the term “home construction contracts” in IRS Section 460 with the term “residential construction contracts.” This revision expands eligibility for the CCM to any residential construction contract where at least 80% of the costs relate to residential projects, regardless of the number of units or contractor size. As a result, larger projects containing more than four dwelling units—such as apartment buildings, condominium complexes, and residential care facilities—now also qualify for CCM.

No longer restricted to small contractors, the completed contract method is now also available to large contractors (exceeding the $31 million average annual gross receipts threshold) for qualifying residential projects. The OBBBA also extends the time period for qualifying construction contracts from two years to three years. Under the new rules, projects expected to be completed within three years can now qualify for the CCM.

Note: the CCM rules pertaining to commercial projects have not changed.

Should you use the completed contract method for your job?

The answer to this question varies depending on your situation and the particular job. The completed contract method allows you to defer paying income tax until a project is completed, providing additional cash flow for multi-year projects. However, lumping income together into a single year may result in a significantly higher tax burden for that year. We recommend meeting with your CPA to discuss the benefit of deferring taxes via the CCM versus spreading the tax burden over a longer period.

Reach out to our construction team at RBT CPAs for guidance related to the different methods of accounting for construction, and for all of your other accounting needs. We’re here to help you and your business succeed.

From Seed to Savings: 9 Tax Incentives for New York State Farms

From Seed to Savings: 9 Tax Incentives for New York State Farms

If your New York State business operates as a farm—whether farming is your main line of business or not—you may be eligible for several additional tax credits and exemptions through the state. Below are nine tax incentives for businesses engaged in farming in New York State. For NYS tax purposes, “farming” includes the raising or production of field crops, fruits, vegetables, livestock and livestock products, honey and beeswax, maple syrup, and other agricultural commodities.

  1. Alcoholic Beverages Tax Exemption: In New York State, agricultural products used in the production of alcoholic beverages are exempt from alcoholic beverages tax.
  2. Sales Tax Exemptions and Refunds: Farm businesses in NYS are exempt from paying state and local sales and use taxes for certain purchases. These purchases include farm machinery, equipment, supplies, computers, certain vehicles, building materials, certain services, and utilities used in farm production or operation. Farms can also apply for a refund of sales tax paid on motor fuel and highway diesel motor fuel used in farm production or operation.
  3. Farm Building Exemption: New York State’s Real Property Tax Law provides a ten-year property tax exemption for newly constructed or reconstructed agricultural structures.
  4. Farm Workforce Retention Credit: Farm employers and owners of farm employers with an eligible farm employee (employed at least 500 hours) may qualify for a credit of $1,200 per employee.
  5. Investment Tax Credit: Eligible farm businesses that place qualified property (i.e., machinery, buildings, or equipment) into service during the tax year may be able to claim 20% of the cost of the property.
  6. Excelsior Job Program Tax Credits: Agricultural operations in New York that create at least five net new jobs may be eligible for Excelsior jobs tax credits, investment tax credits, research and development tax credits, real property tax credits, and child care services tax credits through the Excelsior Jobs Program.
  7. Farm Employer Overtime Credit: Eligible farm businesses that pay a farm employee overtime may be eligible for a tax credit.
  8. Farm Donations to Food Pantries Credit: Farm businesses that make qualified donations to an eligible food pantry are entitled to a tax credit equal to 25% of the fair market value of the donation.
  9. Farmers’ School Tax Credit: Farm businesses that pay school district property taxes on qualified agricultural property are eligible for a tax credit. The amount of the credit is dependent on the number of qualified acres and the amount of school district property taxes paid.

Questions?

If you’re wondering whether your brewery or distillery qualifies for these or other state or federal tax incentives, please don’t hesitate to reach out to our team at RBT CPAs. RBT is here to make sure you make the most of available tax-saving opportunities. Call us today to learn more and find out how we can be Remarkably Better Together.