CFO Associates

04/09/2026

On March 10, 2026, Governor González signed Act 38 — and for anyone evaluating Act 60 as a tax strategy, the most important date is now December 31, 2026.
Here's what changed:
✅ 0% capital gains rate → 4% for new applicants after 12/31/26
✅ Program extended through 2055
✅ New 6-year prior residency requirement for post-2026 applicants
✅ Business export programs — untouched

The application submission date — not your move date — determines your rate.
We broke down everything you need to know

Act 38 of 2026 changed Puerto Rico's Act 60 tax incentive program. Learn what changed, the December 31, 2026 deadline for the 0% capital gains rate, and how CFO Associates can help you evaluate the program.

04/02/2026

Cap rate vs. cash-on-cash:

Cap rate = what the property cash flows with zero debt.
Cash-on-cash = your return after debt service.

Example: $1M property, $80K NOI. Put 25% down ($250K), $750K loan, ~$50K/year in debt service.
$80K NOI − $50K debt service = $30K cash flow. $30K ÷ $250K = 12% cash-on-cash.

Same deal but two different outcomes/numbers. Debt used the correct way is the key to building wealth!

03/26/2026

The IRS has a new tool to track crypto and it's already in effect for the 2025 tax year. Form 1099-DA is now required for crypto exchanges and brokers.

Here's what that actually means:
→ 2025: Brokers report gross proceeds to the IRS. Cost basis accuracy is still your responsibility — especially if assets were acquired across multiple wallets or exchanges.
→ 2026 and beyond: Full cost basis, acquisition date, and gain/loss detail gets reported. Any mismatch between your return and broker data can trigger an IRS notice or audit.
→ DeFi and noncustodial platforms aren't covered yet — but future guidance is expected to expand that.

For businesses, active traders, and high-net-worth investors with complex digital asset holdings, the recordkeeping burden here is significant. A single 1099-DA won't capture staking income, token swaps, or cross-wallet transfers accurately.

We put together a full guide covering what 1099-DA reports, the two-phase rollout, and four steps every crypto investor and business should take before filing season.

https://hubs.li/Q048rvB_0

03/17/2026

Most business owners think about W-9s in January. By then, it's already too late.

Missing vendor W-9s can trigger IRS penalties, backup withholding requirements, and a filing deadline you can't meet — even when the mistake was unintentional.

The fix? One simple policy: No W-9, No Payment.
We broke down exactly how to implement it, what the IRS can do if you skip it, and why it compounds as your business scales.

https://hubs.li/Q047bLg40

03/11/2026

When the whole team is from the islands — you don't miss this game. ⚾🇵🇷🇨🇺
Our founders and the San Juan team are Cuban and Puerto Rican through and through. So when Cuba faced off against Puerto Rico at the World Baseball Classic, the laptops closed early this past Monday and the jerseys came out. The whole team went to the game together for a fun night out and back in the office the next day serving our clients. This is who we are. Proud of our roots, serious about our work. 💼

01/15/2026

The Personal Residence Gain Exclusion is one of the most overlooked tax benefits for homeowners.

It lets you exclude up to:
- $250,000 of capital gain if you're Single
- $500,000 of capital gain if you're Married Filing Jointly

To qualify, here’s what you need to know:
- You must have lived in the home for at least 2 years
- Those 2 years must be within the last 5 years before the sale
- It must have been your primary residence

With home values rising across the country, this could be a powerful way to keep more cash in your pocket when selling.

12/09/2025

Over the next 5 years, AI will transform how we all do business and even handle our own personal life tasks. Last week during our 2026 Annual Operating Plan presentation, we highlighted our firm's initiative in staying ahead of the AI curve by leveraging it to bring more value to clients while leading better work life balance. Asking them to lean into AI, to help us focus on the things that light us up, not burn us out. Like stronger client relationships & communication, forward looking financial planning, and strategy ex*****on.

We want all of our current and future firm associates to be AI ready and forward looking CFO and Tax Advisors. Because you will either learn it, or be left behind. The reality is simple: every firm and professional will face this shift—and those who embrace AI will quickly outpace those who don’t.

12/04/2025

Real Estate Professional Status: If you're married filing jointly & your spouse qualifies as a Real Estate Professional you both get the benefit on your tax return.

You do not HAVE to have a real estate license or real estate brokers license to be deemed Real Estate Professional Status by the IRS as long as you meet ALL of the below:

1. Materially participate in your real estate activities
2. Work 750+ hours per year in real estate
3. Spend more than half your total working time in real estate

This designation allows certain real estate losses to offset other income creating a significant tax benefit for qualifying couples.

11/14/2025

For the past 3 years The University of Tampa CREATE Business Idea Competition has given students a Shark Tank style platform to pitch their ideas. The top 3 win cash as working capital to use in their expansion.

We at CFO Associates are proud to not only sponsor the event, but also participate as judges in the various stages. Coaching and helping students refine their pitches and business plans. This year there was 40 students who pitched, many with revenues and operating businesses already. Congrats to the 2025 winners!

10/30/2025

Thank you to Prospera USA for nominating CFO Associates as one of their 2025 Hispanic Business Success Stories! Since 1991 they have been lifting and helping hispanic business owners in Florida, Georgia, and North Carolina. I appreciate you guys highlighting our 10 year overnight success 🙂

10 years ago Prospera (then called Hispanic Business Initiative Fund) helped fund the firm you see today for a Logo, Brand, and first CFO Associates Website. Their financial support and business guidance was all I needed to take the leap into the entrepreneurship ring. I look back at our first 10 years and can’t help but be grateful for the thousands of entrepreneurs we have met, the team members we have, and the mentors that shaped our vision.

As a Cuban born CPA, it’s the privilege of my professional career to be allowed into the financial lives of our clients and their businesses all over the country. We are on mission atCFO Associatess to spread financial literacy and business acumen to all clients and associates that touch our firm. We look forward to our next 10 years serving our clients on their business journey.

10/23/2025

The S Corporation tax strategy starts with electing your LLC or Corporation to be taxed as an S Corp with the IRS. This election allows profits to pass through to the owners and reduces self-employment tax on profits. After paying yourself a reasonable salary, and the remaining profit flows through to you on a K1 without the additional payroll taxes.

For a self employed business owners netting up to $160K in 2025, this structure will save them around $13,000 on an annual basis in taxes.

10/17/2025

Each year when you file your returns, you should understand your two tax rates. Because not all taxable dollars are taxed the same it's important to understand these two concepts:

Marginal Rate - the tax bracket your taxable income lands in
Effective Rate - the actual blended tax rate paid on all of your taxable income

If you’re proactively tax planning, you should be reducing your effective tax rate each year. With our Tax Advisory services, our goal each year is to help get our client’s effective rates down through strategies available specifically them based on their industry, assets, investments, and lifestyle.