Weekly Digests

Today I got up early to run, yes run on the beach for a short stretch, then head home to another fun day in the office at tax deadline crunch time…  Just like yesterday, it is great to be able to do the things I used to do.  So I am picking out what I think are my best shots of the week and sharing them with a huge smile.

I hope your week was good too and you are planning something special for your weekend. We are looking forward to having our daughter Jessie visit, she recently moved to southern California (yes, it’s a no brainer, she may visit from time to time, but will probably not move back to the east coast). Even though she is here for a good friend’s wedding it’s our job to make sure she eats the NYC specialties we love, so the weekend menu will include our favorite NYC pizza, bagels with veggie cream cheese from our favorite local shop, and Chinese food from our favorite Brooklyn restaurant, (who knew you could load Singapore Chow Mei Fun with $5 of extra veggies and have a guilt free meal).

WEEKLY TAKE AWAY

Some weeks it’s hard to choose between these, but yesterday was a tie breaker day.  Sometimes you just have to go with your gut.  The deciding factor came in the form of a phone call on my cell.  It was the Bank of America fraud department calling to check on a new account I had opened with them. Aha, you are thinking this already sounds fishy. The bank representative was calling because of suspicious activity on an account that “I” opened today. She first asked if I had opened the account then explained the transactions they were seeing.  After I replied no, she gave me the cancellation number and then the claim number and told me their lawyers might contact me.  She also suggested that I might want to visit my local bank and make sure that my real bank accounts had not been compromised.  The call was a huge waste of time but what if I had appeared more vulnerable and had confirmed more information.  I didn’t, but then thought someone else receiving a warning call, could actually be receiving the start of a fraud information gathering call.  I tried to block that number from my phone but was unable to do so, but at least I didn’t give out any critical information.

TAX ISSUES/TAX PLANNING

There’s Still Time for Effective Tax Savings

Take your time, amass some savings in the next few weeks and be effective at reducing your current year tax liability, it’s just a matter of pulling funds from one pocket and putting them in another.  Eligible individual taxpayers should consider making a contribution to their traditional IRA by the April 18^th deadline. Under the right circumstances your IRA contribution could save you money on 2022 tax bill. Remember to consult your tax professional to see if this makes sense for you.

It’s Better to Extend than Amend or Miss Tax Minimization Opportunities

With the March 15^th deadline approaching for S Corporations and Partnerships some business owners may want to follow these rules: “it’s better to extend than amend”; “it’s better to extend than rush to file and miss out on some little known tax advantages”; “it’s better to extend than rush to file and miss out on some little known hitches in the tax law”.

• New York State Small Business Subtraction Modification: as of January 1, 2022, eligible shareholders, partners, members and sole proprietors whose entity is also eligible can apply the expanded subtraction modification to their 2022 tax return for a reduced tax bill at the state level.
• Annual deferred compensation plan contributions for company pension plans are due by the filing deadline next week, by filing am extension you can make the payment by September 15^th and still reduce your business and/or individual tax liability.   For sole proprietorships the due dates are April 18^th and October 15^th.
• Forms K-2/K-3 Reporting Responsibility for Pass-Through Entities- see my blog post from February 24^th for more detail about protection under statute of limitations rules

Reminder, the Tax Return Deadline Postponed for Those in Disaster Areas

The IRS announced that taxpayers in most of California, Alabama and Georgia will now have until Oct. 16, 2023, to file their federal individual and business tax returns and make tax payments.  The prior postponement was set for May 15th.  Details can be found here.

ECONOMY

High Interest Rates and Supply Chain Issues Continue to Cause Financial Uncertainty

“A new report from S&P Global says high interest rates and supply chain risks may lead to further uncertainty and economic headwinds over the next several years” read the full article here.

The Chinese Economy is Booming as Zero Covid Approach Ends

The Chinese economy is heating up, with manufacturing growing at its highest rate in a decade. The improvement is due to the widespread loosening of restrictions which brought millions of people back to work and bodes well for the world economy.

Salesforce Appears to be on the Rebound

Salesforce shares have gained over 25% this year, the most substantial year-to-date gain for a Dow Jones Industrial Average component. It’s a promising report from an industry that saw serious losses last year.

Tesla Reports Disappointing Numbers

The company’s much-awaited Investor Day had nothing but lackluster numbers to report, with a drop of 8.3% last week – the biggest since January 3. Experts say that they lacked the metrics necessary to track progress accurately.

It May Be Best Not to Rely on ChatGPT for Financial Advice

AI is everywhere these days and proving to be quite helpful. However, it’s also often wrong. After prompting ChatGPT to produce a plan to purchase a $500,000 house, one expert warns that the chatbot should not replace a professional financial planner.

GENERAL RESOURCES

• IRS resources for stimulus payments:
  • Use the Get My Payment tool to check on EIP payment status
  • Eligibility and general information about Economic Impact Payments
  • A list of frequently asked questions for stimulus payments
• IRS information about the Advance Child Tax Credit Payments
  • Portal to update information
  • A list of frequently asked questions on the advance Child Tax Credit Payments
• The best source for up-to-date and accurate health information is the Center for Disease Control (CDC)
• Our prior blog posts, videos and prior weekly newsletters
• Entrepreneur put together a listing of free tech resources for remote work
• The Consumer Financial Protection Bureau has warnings about COVID-related scams
• The New York Times has an online newsletter on K-12 and higher education
• The Wall Street Journal has a collection of articles on education
• The Louvre has digitized 482,000 artworks from its collection
• How to create a strong password

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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