James P O'Day, CPA, PC.

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James P O'Day, CPA, PC. Looking for a blend of personal service and expertise? You have come to the right place! We welcome you to contact us anytime.

Our firm provides outstanding service to our clients because of our dedication to the three underlying principles of professionalism, responsiveness, and quality.

*Professionalism
Our firm is one of the leading firms in the area. By combining our expertise, experience and the energy of our staff, each client receives close personal and professional attention. Our high standards, service and specialized staff spell the difference between our outstanding performance and other firms. We make sure that every client is served by the expertise of our whole firm.

*Responsiveness
Our firm is responsive. Companies who choose our firm rely on competent advice and fast, accurate personnel. We provide total financial services to individuals, large and small businesses and other agencies. To see a listing of our services, please take a moment and look at our services page. Because we get new business from the people who know us best, client referrals have fueled our growth in the recent years. Through hard work, we have earned the respect of the business and financial communities. This respect illustrates our diverse talents, dedication and ability to respond quickly.

*Quality
An accounting firm is known for the quality of its service. Our firm's reputation reflects the high standards we demand of ourselves. Our primary goal as a trusted advisor is to be available to provide insightful advice to enable our clients to make informed financial decisions. We do not accept anything less from ourselves and this is what we deliver to you. We feel it is extremely important to continually professionally educate ourselves to improve our technical expertise, financial knowledge, and service to our clients. Our high service quality and "raving fan" clients are the result of our commitment to excellence. We will answer all of your questions, as they impact both your tax and financial situations.

Are you planning to buy a business vehicle, furniture or equipment before year end? The timing of your purchase could af...
10/29/2026

Are you planning to buy a business vehicle, furniture or equipment before year end? The timing of your purchase could affect your 2026 tax bill. Depending on the asset and your circumstances, you may qualify for Section 179 expensing, 100% first-year bonus depreciation or a combination of both. To claim these breaks for 2026, qualifying property must be placed in service by December 31, 2026. Before making a major purchase, consider your projected taxable income, cash flow, financing needs, and any applicable deduction limits and eligibility requirements. Call us at (516) 671-3300 to discuss your options and help determine the right depreciation strategy for your business.

The 40% generation-skipping transfer (GST) tax generally applies to transfers made to people two generations or more bel...
10/26/2026

The 40% generation-skipping transfer (GST) tax generally applies to transfers made to people two generations or more below you, like your grandchildren. And it applies on top of any gift or estate tax due. The good news is that a large GST tax exemption is available: $15 million for 2026. So most taxpayers don’t need to worry about the GST tax. But if you have a large estate, you can allocate your GST tax exemption to contributions to a dynasty trust and allow assets to skip several generations of taxation. Contact us at (516) 671-3300 to learn more.

Cryptocurrency holders: Be alert for a new IRS impersonation scam. Fraudsters are mailing fake IRS letters directing rec...
10/23/2026

Cryptocurrency holders: Be alert for a new IRS impersonation scam. Fraudsters are mailing fake IRS letters directing recipients to a bogus “Digital Asset Compliance Portal.” The letters instruct recipients to scan a QR code that leads to a fraudulent website designed to look like IRS.gov. The site may ask for personal information, cryptocurrency wallet details, or exchange account credentials that criminals can use to steal identities or digital assets. If you receive one of these letters, don’t respond. Report any suspicious communication to the IRS immediately. If you have questions about an IRS notice or digital asset reporting, we’re here to help. Contact us at (516) 671-3300.

Employers: The IRS recently updated its FAQs on the qualified overtime pay tax deduction for employees created in 2025. ...
10/21/2026

Employers: The IRS recently updated its FAQs on the qualified overtime pay tax deduction for employees created in 2025. The guidance provides new details on how you must identify, calculate and report qualified overtime income. For example, it clarifies that only FLSA-mandated overtime premiums qualify, notifies employers that separate reporting on Forms W-2 is required beginning in 2026, and confirms that overtime pay remains subject to federal income tax withholding. These changes may call for payroll system updates and a closer review of employee classifications and overtime practices. Call us for help preparing for the new requirements.

Tax-Smart Building Improvements: Plan Before Year-EndPlanning building repairs or improvements before the end of 2026? Y...
10/19/2026

Tax-Smart Building Improvements: Plan Before Year-End

Planning building repairs or improvements before the end of 2026? Your business may qualify for a tax break that allows certain costs to be deducted immediately rather than depreciated over time.

The small business building safe harbor may be available if your business has average annual gross receipts of $10 million or less over the previous three tax years and the building’s unadjusted basis is $1 million or less.

To qualify, total annual spending on repairs, maintenance, improvements, and similar activities for the building generally cannot exceed the lesser of $10,000 or 2% of the building’s unadjusted basis.

For example, a qualifying building with a $400,000 unadjusted basis would have an $8,000 limit.

Why plan now? If total expenses exceed the applicable limit, the safe harbor generally won’t apply to any of the expenditures for that building. Reviewing year-to-date spending before authorizing additional work may help you avoid missing this opportunity.

Not all improvements qualify for an immediate deduction, so proper planning and documentation are essential.

Before moving forward with year-end building projects, contact James P. O’Day, CPA, P.C. at (516) 671-3300 to discuss your options and determine whether this tax strategy may benefit your business.

Could You Owe the 3.8% Net Investment Income Tax?Planning to sell appreciated stocks, investment real estate, or other a...
10/16/2026

Could You Owe the 3.8% Net Investment Income Tax?

Planning to sell appreciated stocks, investment real estate, or other assets before year-end? You may face an additional tax: the Net Investment Income Tax (NIIT).

The NIIT is an additional 3.8% tax that may apply when your modified adjusted gross income (MAGI) exceeds these thresholds:

$200,000 for single filers and heads of household

$250,000 for married couples filing jointly

$125,000 for married taxpayers filing separately

The tax generally applies to the lesser of your net investment income or the amount your MAGI exceeds the applicable threshold. Investment income may include interest, dividends, capital gains, rental income, royalties, and certain passive business income.

Year-end tax planning may help reduce your exposure. Depending on your circumstances, strategies to consider include:

Evaluating whether to time a large asset sale for 2027

Harvesting capital losses to offset realized gains

Reviewing expected dividends and mutual fund capital gain distributions

Maximizing eligible pretax retirement plan or HSA contributions

Exploring installment sale options for qualifying transactions

Keep in mind that retirement account distributions generally aren't net investment income, but taxable distributions may increase MAGI and affect your NIIT liability.

Before making a major investment decision, consider the tax consequences alongside your financial goals and cash flow needs. A year-end tax projection can help you understand your potential exposure and evaluate your options.

For assistance with your 2026 tax planning, contact James P. O’Day, CPA, P.C. at (516) 671-3300.

Get Ahead of Taxable Benefits Before Year-EndAs 2026 comes to a close, businesses should review employee and owner benef...
10/14/2026

Get Ahead of Taxable Benefits Before Year-End

As 2026 comes to a close, businesses should review employee and owner benefits to ensure proper tax treatment and accurate payroll reporting before year-end.

Not all fringe benefits are tax-free. While benefits such as employer-provided health insurance and certain educational assistance may qualify for exclusions, personal use of company vehicles, gift cards, and some entertainment benefits may need to be reported as taxable compensation.

Key 2026 updates to know:

Dependent care assistance: The maximum tax-free exclusion increased to $7,500 ($3,750 for married taxpayers filing separately).

Educational assistance: Employers can generally provide up to $5,250 in tax-free benefits, including qualifying student loan payments.

S corporation owners: Health insurance premiums paid or reimbursed for shareholder-employees owning more than 2% generally must be included in Form W-2 wages, subject to special tax rules.

Misclassified benefits can lead to payroll tax issues, incorrect W-2 reporting, and potential penalties. Reviewing benefits now can help your business avoid last-minute corrections and stay compliant.

Need help reviewing employee benefits or planning your year-end payroll? Contact James P. O’Day, CPA, P.C. at (516) 671-3300.

Maximize Tax-Free Gifts of Ownership Interests in Your BusinessBusiness owners may be able to transfer wealth more tax e...
10/12/2026

Maximize Tax-Free Gifts of Ownership Interests in Your Business

Business owners may be able to transfer wealth more tax efficiently by gifting ownership interests to family members. For 2026, the gift tax annual exclusion is $19,000 per recipient.

Certain interests may qualify for valuation discounts. For example, a minority interest may qualify for a lack-of-control discount because the holder can’t dictate business decisions. A lack-of-marketability discount may apply when there’s no ready market for selling the interest. Assuming a combined discount of 25%, this year you could gift an interest worth up to $25,333 (on a controlling basis) tax-free because the discounted value wouldn’t exceed the $19,000 annual exclusion. Contact the office to learn more.

New Law Expands Disaster Tax ReliefThe Doug LaMalfa Federal Disaster Tax Relief Certainty Act was signed into law in Sep...
10/09/2026

New Law Expands Disaster Tax Relief

The Doug LaMalfa Federal Disaster Tax Relief Certainty Act was signed into law in September. It extends expanded personal deductions for disaster-related losses temporarily available under the Federal Disaster Tax Relief Act. Without the relief, victims of a federally declared disaster can deduct personal casualty losses only if they itemize deductions and only to the extent those losses exceeded 10% of their adjusted gross income (AGI).

The now-extended relief allows eligible disaster victims — generally for disasters starting December 28, 2019, through December 31, 2026 — to deduct qualified losses above $500 without itemizing and removes the 10% of AGI threshold for those losses. The law also extends the exclusion of qualified wildfire relief payments from taxable gross income. Contact the office for details.

Charitable Givers Get a New Tax BreakBeginning in 2026, taxpayers who take the standard deduction may deduct up to $1,00...
10/07/2026

Charitable Givers Get a New Tax Break

Beginning in 2026, taxpayers who take the standard deduction may deduct up to $1,000 of qualifying charitable contributions, or up to $2,000 for married couples filing jointly. Only cash contributions qualify, such as gifts made by check, debit or credit card, payment app or payroll deduction. Contributions of property, such as clothing, household items or securities, don’t qualify.

If you expect to claim the standard deduction, you may want to make qualifying charitable gifts before December 31. Doing so could reduce your taxable income while supporting causes that are important to you. Keep records supporting any deduction claimed. Contact the office with any questions.

Address

70 Glen Street, Suite 270
Glen Cove, NY
11542

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

Telephone

(516) 671-3300

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