Carlson, McAllister & Associates Inc.

10/06/2026

If you filed a tax extension, your filing deadline is October 15, 2026. Waiting until the last minute may create unnecessary stress and could lead to penalties if your return is not filed on time.

Let our team help you get everything completed before the deadline.

✅ Individual Returns ✅ Business Returns ✅ Extension Filers Welcome

📞 Call Carlson, McAllister & Associates, Inc. at 570-253-5005

📍 Honesdale, PA

Don't wait until October 15th. Contact us today.

10/05/2026

📢 Get Ahead of Taxable Benefits Before Year-End

As 2026 comes to a close, now is the time to review employee and owner benefits to ensure proper payroll and tax reporting.

Many fringe benefits may be tax-free, while others must be included in taxable wages. Common items that often require special attention include:

✅ Personal use of company vehicles
✅ Gift cards and cash-equivalent benefits
✅ Entertainment and sporting event tickets
✅ Health insurance premiums for certain S corporation shareholder-employees
✅ Dependent care assistance benefits
✅ Educational assistance and qualifying student loan payments

What's New for 2026?

🔹 Dependent care assistance exclusions increased to $7,500 ($3,750 for married taxpayers filing separately).

🔹 Employers may continue providing up to $5,250 of tax-free educational assistance, including qualifying student loan payments.

Failing to properly report taxable benefits can lead to payroll tax issues, penalties, and incorrect Forms W-2.

📞 Contact Carlson, McAllister & Associates, Inc. today to review your employee and owner benefits before year-end and avoid costly surprises.

10/01/2026

As we approach year-end, now is a great time to take a closer look at your books and make sure everything is working for you, not against you.

One of the biggest challenges we see is the mixing of business and personal expenses. While it is easy to do, separating those transactions before year-end can help you:

✅ Simplify tax preparation
✅ Improve the accuracy of your records
✅ Capture deductions you may otherwise miss
✅ Reduce the risk of IRS questions
✅ Gain a clearer understanding of your business's profitability and cash flow

At the same time, don't overlook potential tax credits.

♿ Thinking about making your business more accessible? You may qualify for the Disabled Access Credit, a valuable tax incentive available to many small businesses. Eligible businesses can receive a credit equal to 50% of qualifying accessibility-related expenses over $250, up to $10,250.

Examples may include: • Accessibility equipment or modifications
• Readers for individuals with visual impairments
• Interpreters for individuals with hearing impairments

A little planning before year-end can go a long way toward reducing stress and maximizing tax-saving opportunities.

If you'd like help cleaning up your bookkeeping, reviewing deductions, or determining whether your business qualifies for available tax credits, we're here to help.

📞 Contact CMA Inc. today.

09/15/2026

If you see this guy today, wish him a Happy 45th! 🎉

He puts his clients first, takes care of his team, and gives his all to CMA.

Happy Birthday, Joe! 🥳

09/11/2026

08/18/2026

Choosing the Right Business Funding Solution
Access to capital helps small businesses succeed and grow. Whether you need to cover cash flow gaps, fund expansion plans or invest in long-term assets, it’s important to understand all your financing options. This will help you make informed decisions and select funding that aligns with your goals.

5 Financing Options to Consider
Your business may have access to several types of financing, with most options falling into five broad categories:

1. Lines of credit. This is a common form of financing because of its simplicity and flexibility. Once approved, businesses can borrow up to their credit limit whenever needed without reapplying. It can help meet periodic, temporary cash flow shortfalls. It’s often wise to establish a line of credit before you need it, so funds are readily available.

2. Term loans. These loans are issued for a specific period. They’re repaid with interest over a set number of years and are mainly used to purchase fixed assets, such as machinery, vehicles and equipment, or to support major business investments.

3. Commercial mortgages. This type of term loan is used to purchase new or existing commercial property, including retail space, industrial warehouses and office buildings.

4. Government loan programs. Small Business Administration (SBA) loan programs, including 7(a) and 504 loans, are a significant source of funding for qualifying businesses. The SBA periodically updates program rules and lending limits, so review current SBA requirements before applying. Because the SBA guarantees a portion of these loans, lenders may extend financing to businesses that otherwise wouldn’t qualify under standard underwriting criteria.

5. Equipment leases. When acquiring equipment, leasing may be a better option than purchasing it outright. This can be especially beneficial for technology that may quickly become outdated. Leasing can help preserve cash flow while allowing businesses to upgrade equipment as needs change.

Alternative Funding
Your business may also be able to access funding from less traditional sources. Examples include online lenders and specialized financing providers.

They may offer financing solutions that complement traditional lending options, including working capital loans, equipment financing and factoring. Factoring allows a business to receive cash based on outstanding customer invoices, helping improve short-term cash flow.

Moving Forward
Some financing options may offer tax advantages. Interest paid on business loans, including lines of credit, term loans, commercial mortgages and SBA loans, may be deductible, subject to various rules and limits. Payments made under qualifying equipment leases are generally deductible as a business expense.

If you’re considering borrowing or exploring alternative funding sources, contact the office for help evaluating your options, understanding the financial and tax implications and identifying financing solutions that best fit your needs.

08/12/2026

How Renting Out Your Vacation Home Affects Your Taxes
When you’re not using your vacation home, renting it out can generate extra income. But it can also affect your taxes, depending on how often you rent and use the property personally.

The 14-Day Rule
In some situations, renting out a vacation home can generate tax-free rental income. If it’s rented for 14 or fewer days during the year, the rental income typically doesn’t need to be reported on your tax return.

However, deductions are limited. You may generally deduct property taxes and qualified mortgage interest if you itemize deductions, but you can’t deduct operating expenses or depreciation. (The property tax deduction is subject to the state and local tax deduction cap. Mortgage interest is deductible on your principal residence and one other home, subject to certain limits.)

More Than 14 Days
If your vacation home is rented for more than 14 days during the year, the rental income generally must be reported as taxable income. But you can deduct a portion of operating expenses and depreciation, subject to certain rules.

Expenses must be allocated between personal and rental use. For example, if the home is rented for 90 days and used personally for 30 days, 75% of the total use is rental use (90 out of 120 total days).

In that case, you can allocate 75% of your costs, such as maintenance, utilities and insurance, plus 75% of your depreciation allowance, interest and property taxes to the rental activity. The personal use portion of taxes is separately deductible as an itemized deduction. The personal use portion of interest on a second home may also be deductible, but only if the personal use exceeds the greater of 14 days or 10% of the rental days and the home mortgage interest deduction rules are met. Depreciation on the personal use portion isn’t allowed.

Can You Claim a Loss?
If deductible expenses for your vacation home exceed rental income, you may be able to claim a rental loss. Here’s the test: If personal use is more than the greater of 14 days or 10% of rental days, the property is generally treated as a personal residence. In that case, deductions attributable to rental use generally can’t create a loss. Instead, they’re limited to rental income, and unused deductions may be carried forward to future years.

If the property isn’t considered a personal residence based on your personal use, you must still allocate expenses between personal and rental use. But the home will be considered a rental property and, if your rental deductions exceed rental income, you can potentially claim the loss. (However, the loss is “passive” and may be limited under passive loss rules.)

Moving Forward
Vacation home tax rules can be complex. Additional rules may apply if you qualify as a real estate professional or if you own multiple rental properties. Contact the office if you have questions.

08/05/2026

Higher IRS Mileage Rates Take Effect
Due to rising fuel costs, the IRS has increased the 2026 cents-per-mile rates for calculating certain vehicle deductions. Effective July 1, 2026, the standard mileage rate for the business use of a car, SUV, van, pickup truck or panel truck is 76 cents per mile, up from 72.5 cents per mile for the first half of the year.

The revised rate for medical and eligible moving purposes is 23.5 cents per mile, up from 20.5 cents per mile. For charitable driving, the 14 cents per mile rate remains unchanged.

These rates apply to gasoline- and diesel-powered vehicles as well as electric and hybrid ones. To protect your deduction, keep detailed mileage records. Contact the office with questions.