JV Accounting Services

Our Managing Partner recently attended the 42nd Anniversary of Filipino American Association of Tax Practitioners Texas (FAATX), connecting with fellow tax professionals and industry leaders.

Staying engaged with the professional community helps us stay ahead of the changes that impact our clients — from business owners to physicians navigating complex tax decisions.

Moments like these are a reminder that strong networks and shared knowledge ultimately benefit the people we serve.

✨ Happy New Year from JV CPA INC.✨

As we welcome the New Year, we’d like to thank our clients, partners, and community for the trust you’ve placed in us.

The year ahead brings new opportunities, new goals, and new possibilities — and we’re here to help you move forward with clarity and confidence.

Whether it’s PCAOB Audit and Assurance, Business Tax Strategies, or Accounting Services, our team remains committed to supporting your success every step of the way.

Wishing you a prosperous, successful, and fulfilling New Year.
— JV CPA INC.

Are You Reporting Your Airbnb Income Correctly? 🏡💰

Reporting Airbnb income on your Form 1040 depends on a few factors, such as whether you provide substantial services to guests and how often you rent out your property. Here are the general steps:

✅ Determine Your Rental Activity Type:

Schedule C (Profit or Loss from Business): If you provide substantial services to guests (like cleaning, meals, etc.), you'll report your income on Schedule C. This income is subject to self-employment tax.

Schedule E (Supplemental Income and Loss): If you don't provide substantial services, you'll report your income on Schedule E. This income is not subject to self-employment tax.

✅ Gather Your Income Information:

Collect all records of your rental income, including Airbnb's income summary, which shows your earnings for the tax year.

✅ Complete the Appropriate Schedule:

Schedule C: Report your rental income in Part I and your expenses in Part II.

Schedule E: Report your rental income and expenses in the appropriate sections.

✅ Attach to Form 1040:

Attach your completed Schedule C or Schedule E to your Form 1040 when you file your taxes.

✅ Deductions:

You can deduct expenses related to your rental activity, such as mortgage interest, property taxes, and maintenance costs.

Remember, it's always a good idea to consult with a tax professional to ensure you're reporting everything correctly and taking advantage of all possible deductions.

🔹 Additional Insights for Airbnb Hosts:

🏠 What if you rent for fewer than 14 days a year? The IRS’s “14-day rule” allows you to earn rental income tax-free if you rent your property for 14 days or fewer annually. Beyond that, you must report the income.

📉 Depreciation Benefits: If your property qualifies as a rental business, you can deduct depreciation expenses over time, reducing your taxable income.

⚖️ State & Local Taxes: Some states require additional reporting, and many cities have short-term rental taxes (like hotel taxes). Make sure you’re compliant to avoid penalties.

💡 Avoid IRS Red Flags: Inconsistent reporting or excessive deductions could trigger an audit. Keep detailed records of all transactions, expenses, and stays.

Renting out your property is a fantastic way to generate income, but staying tax-compliant is key to avoiding headaches down the road. Have questions? Drop them in the comments! ⬇️

Filing Separately – A Smart Move?

💰 Are you and your spouse leaving money on the table? Most couples file jointly, but in some cases, filing separately could help you save!

🔢 Example Calculation – Filing Jointly vs. Separately

👩 Spouse A: $50,000 income, $10,000 in medical expenses
👨 Spouse B: $80,000 income, $2,000 in medical expenses

👉 Filing Jointly:
Total AGI = $130,000
Medical Deduction Threshold (7.5%) = $9,750
Eligible Deduction = $2,250

👉 Filing Separately (Spouse A):
AGI = $50,000
Medical Deduction Threshold = $3,750
Eligible Deduction = $6,250

🚨 That’s an extra $4,000 in deductions just by filing separately!

📌 When should you consider it?
✅ High Medical Expenses
✅ Significant Miscellaneous Deductions
✅ Student Loan Interest Deduction
✅ Protecting from Tax Liabilities
✅ Income-Driven Repayment Plans (IDR)
✅ Separation or Divorce

But be careful! Filing separately can mean higher tax rates and losing some credits.

⚖️ Should YOU file separately or jointly?

🔗 Read more here: jvcpa.com/when-to-consider-filing-separately

📢 Key Tax Terms You Need to Know in 2025! 💰📊

The tax landscape is shifting, and business owners need to stay informed. Here are some key terms that could impact your finances this year:

🔹 OECD Cooperation Termination – The U.S. withdrawal from the global tax deal could change international tax compliance.
🔹 IRS Hiring Freeze – Could slow down tax enforcement and processing times.
🔹 Corporate Tax Rate Reduction – A proposal to lower corporate taxes to 15% to encourage business growth.
🔹 FinCEN BOI Reporting – New requirements to track business ownership for anti-money laundering purposes.
🔹 Foreign Bank Account Reporting (FBAR) – Essential for U.S. taxpayers with foreign accounts to avoid penalties.

Staying ahead of these changes can help protect your business and maximize opportunities. Need expert guidance? We’re here to help! 👇

🔗 Learn more: www.jvcpa.com