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Weekly Digests

Weekly Digest – December 30, 2022 -Best Wishes for a Happy New Year

I hope everyone enjoyed the Hanukkah and Christmas holidays, some of us had some cold stormy weather and others had a white Christmas.  I asked for photos and am happy to share them here.  FYI they come from as far as California and Texas as far south as Georgia and north as Michigan.

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Hanukkah in NYC
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Christmas in New Jersey
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White Christmas in Michigan
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Christmas in Georgia
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Christmas in Texas (Sampson gets around)
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Christmas in Southern California

It’s been a crazy year for many; I am hoping we can all look back to the great memories and are planning a new year’s celebration with friends and family as we all look forward to a happy healthy new year for all.

WEEKLY TAKE AWAY

The benefit of working together as a team for a common goal can be seen over and over again in sports, in industry and in families. This was so very clear to me from a project we worked on this month and completed yesterday. Several of our tax saving strategies involve our firm and either an attorney specialist or a financial advisor/broker.  Just this week we completed a plan to convert a large traditional IRA portfolio (which included IRA’s rolled over from company 401K’s) to a ROTH IRA, saving our client and their heirs thousands of dollars of future taxes.  Along with the broker we identified the benefit of converting a portion of the IRA to a ROTH IRA over the course of several years. This ROTH IRA account will grow tax free. In addition the growth and distributions will be tax free to our client during their lifetime and to their heirs upon inheritance.  Working towards a unified goal as a team with our client’s financial advisors can make all the difference in the world for our clients’ financial wellbeing

TAX ISSUES/TAX PLANNING

Over the last few weeks my blog has been pointing out the opportunities for tax savings, this ends today for 2022, but next week we get to start all over again, but with extra time to plan.  So as you think about your New Year’s resolutions, please add tax planning and discussions with your financial advisors to your list.

Last minute tax saving stratagies for 2022:

  • Charitable giving
  •  Pass Through Entity Tax estimate payment (PTET)
  • Roll a portion of your regular IRA into your ROTH IRA
  • Harvest some capital losses to offset capital gains
  • Maximize your salary deferrals and catch-up contribution if eligible
  • Purchase and place a much needed piece of equipment into service for your business
  • Make a payment on an outstanding business invoice
  • Make a payment on an outstanding medical invoice if you can itemize this year (or hold up if you are able to and can benefit more next year)

IRS Delays Implementation of $600 Reporting Threshold for Third-Party Payment Platforms’ Forms 1099-K

As per IRS notice 2023-10, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021. The IRS released guidance outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) including Venmo, PayPal and CashApp that would have generated Form 1099-Ks for taxpayers.

ECONOMY

BOTS may be Stealing Holiday Sales and Profits

Retailers are fighting a constant battle against a growing army of bad bots trying to snatch up all the hot holiday gifts and toys. Inventory-scalping bots, aka “Grinch bots,” tend to proliferate as the holidays approach. Last year, bot-related attacks on retail sites grew 10% in October, and another 34% in November, according to data published by cybersecurity firm Imperva in its 2022 Bad Bot Report.

Various Experts Forcast “2023  as a Year of Economic Pain”

Consumers and investors are questioning where the 2023 economy is headed.  Federal Reserve Chair Jerome H. Powell was also asked what was in store for the economy after yet another rate hike intended to tame inflation was enacted.   “I don’t think anyone knows whether we’re going to have a recession or not and, if we do, whether it’s going to be a deep one or not,” Powell said on Dec. 14, after the Federal Open Market Committee’s final meeting for 2022. “It’s just not knowable.” Other experts share their predictions in this Washington Post article.

GENERAL RESOURCES

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are here for you.

If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started.

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