Weekly Digest – February 3, 2023
I started writing this week’s blog/newletter while on the water heading into “the city” for a few meetings ; I feel so lucky to be able to take the NYC Ferry to peir 11 in Manhattan. I took this shot as we passed under the Marine Parkway-Gil Hodges Memorial Bridge as we started our journey…
While I am relaxing on my trip to Manhattan via the NYC waterways, my daughter and son-in-law are waking up to a beautiful view of winter on one of the many lakes in Michigan where they have had below freezing weather for a while but then have to travel on snowy roads to work…
I am not sure any of you have seen my last few blogs about not carrying my business cards, today as I left my office Raquel reminded me so. Today I am carrying several cards: my business card (finally), MTA card and my ferry tickets (loaded into my cell phone) so all good. It was a wonderful day meeting with new acquaintances who have become friends over lunch, dinner and coffee and finalizing projects with associates in person.
I know we are expecting the temperature here to drop by this evening; this morning the temperature was 31 degrees which felt much lower than the reported 21 degree “feel”, still beautiful but no surprise that I was the only one out there…
I hope you have great plans for the weekend which include bundling up for sub-freezing weather as you venture outside, or stay in your toasty warm home…
WEEKLY TAKE AWAY
I am not sure how you look at 8 AM on a Sunday morning with no make-up, a wet head and too little sleep the night before. As I stared into the well-lit mirror of my hair stylist all I saw were 2 sets of puffy eyes, mine and my stylist’s. We both admitted to not getting enough sleep the night before, she binge watched White Lotus on HBO, I read and finished a book on my kindle. As I was leaving she offered me a bottle of water, which I initially politely declined. She then reminded me how important keeping well hydrated during the day and getting a good night’s sleep was for our health (and our puffy eyes). I drank the water, committed to a hard reading stop of 10 PM all week and consciously began drinking approximately one gallon of fluids a day (several cups of coffee, and several 12 oz. glasses of either water or tea a day) . Guess what no more puffy eyes.
TAX ISSUES/TAX PLANNING
Tax Planning for 2023 and Beyond
During my meetings this week the talk turned to tax minimization planning, how can we help our clients; here are a few ideas to discuss with your tax professional:
- Married filing jointly vs married filing separately – review the rules and your options before you file
- Itemized tax deduction bunching – consider the timing of expenditures like charitable giving, necessary dental work, or required medical procedures when there is a chance of qualifying for itemized deductions
- Deferred compensation elections – maximize 401K, 457B, 403B, SIMPLE IRA. etc.,
contributions for a lower taxable income and employee matching
- When planning remember to consider state tax laws as they de-couple from IRS rules
- You may and/or your EV may not qualify for the tax credit (see my 1/27/203 blog for more detail)
- Tax documents from digital asset sales may only be available via website downloads
- Plan around excess loss limitation rules
- Plan around expected delays in receiving pass-through entity tax documents especially those with K-2/K-3 reporting
Earned Income Tax Credit Awareness Day
The IRS and partners held an Earned Income Tax Credit Awareness Day outreach campaign on January 27th to help millions of Americans who earned $59,187 or less last year take advantage of the Earned Income Tax Credit (EITC) the rules in general:
EITC is for workers whose income does not exceed the following limits in 2022:
- $53,057 ($59,187 married filing jointly) with three or more qualifying children who have valid Social Security numbers (SSNs).
- $49,399 ($55,529 married filing jointly) with two qualifying children who have valid SSNs.
- $43,492 ($49,622 married filing jointly) with one qualifying child who have valid SSNs.
- $16,480 ($22,610 married filing jointly) with no qualifying children who have valid SSNs.
- Investment income must be $10,300 or less.
As We Transition to EVs, Auto Dealers Aren’t on the Same Page as Manufacturers
Automakers are trying to figure out how to get franchised auto dealers on board as they transition to electric vehicles. Some ask luxury dealers to go all-in on EVs, while others offer a certification-level approach. Our lawmakers and the IRS is on board too, check out my blog from last week to make sure you are armed with the facts on the Inflation Reduction Act’s credit for EV’s.
Hundreds of Jobs Lost as UK Airline Collapses for the Second Time
Flybe went into administration less than a year after returning to the skies following a previous collapse. All flights were immediately cancelled, and passengers were notified not to show up for trips scheduled to leave just hours later.
Joint Agreement to Limit China’s Access to Chipmaking Equipment
The federal government has reportedly reached an agreement with the Netherlands and Japan to restrict China’s access to advanced chipmaking machinery. The agreement would reportedly see export controls imposed on companies that produce lithography systems, including ASML and Nikon.
4 Cities Likely To See A 2008-Style Housing Crash
Goldman Sachs predicts that 4 cities are poised to experience a severe housing crash, similar to the 2008 crisis. All of the cities experienced a red-hot housing market during the pandemic. “This decline should be small enough as to avoid broad mortgage credit stress, with a sharp increase in foreclosures nationwide seeming unlikely,” Goldman Sachs wrote. “That said, overheated housing markets in the Southwest and Pacific coast, such as San Jose MSA, Austin MSA, Phoenix MSA, and San Diego MSA will likely grapple with peak-to-trough declines of over 25%, presenting localized risk of higher delinquencies for mortgages originated in 2022 or late 2021.”
- IRS resources for stimulus payments:
- IRS information about 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 Covid-19 Resource Center with relevant blog posts, videos and prior weekly newsletters
- Payroll, HR and benefits company Gusto has put together An Employer’s Guide to Navigating the Coronavirus
- Accounting Today has a special page for articles on COVID-19
- Intuit QuickBooks has a dedicated page to help small businesses
- Entrepreneur put together a listing of free tech resources for remote work
- The Consumer Financial Protection Bureau has warnings about COVID-related scams
- Fast Company has a listing of the best productivity apps for 2020
- 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
- PC Magazine explains how to carry your vaccination card on your phone
- 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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