Weekly Digest–December 29, 2023 🕛10-9-8-7-6-5-4-3-2-1 HAPPY NEW YEAR 🎆🎊🥳🥂

I look forward to holiday season as a time when we come together as friends and family to celebrate our accomplishments, enjoy each other’s company and favorite dishes, create new memories, recount anecdotes from past holidays and watch a series of favorite classic movies.  I hope everyone enjoyed the 2023 Hanukkah🕎and Christmas 🎄holidays as much as I did.  Some of us had some 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 west as California and Texas as far south as Florida and north as Upstate NY.  I am glad to say some of the NYC cookies landed in my house (but they only lasted a day)…

Homemade Holiday Cookies and Baklava
Homemade Holiday Cookies and Baklava

I didn’t get to taste these, but they all look delicious, next year I’ll tell them to skip the photos and send me a care package, I’ll take my own photos….

Homemade Christmas Cookies in CA
Homemade Christmas Cookies in CA
Home Baked Holiday Pies on Long Island
Home Baked Holiday Pies on Long Island
Baking Holiday Cookies With the Nieces & Nephews in GA
Baking Holiday Cookies With the Nieces & Nephews in GA

I do love seeing the beautiful and creative ways that my friends decorate their trees, this is a no judgment zone but I do love the grinch…

A Grinch Christmas in FL
A Grinch Christmas in FL
Christmas in FL
Christmas in FL
Christmas in GA
Christmas in GA
Christmas in Brooklyn
Christmas in Brooklyn
Christmas in Rockaway Beach
Christmas in Rockaway Beach
Christmas in Upstate NY
Christmas in Upstate NY
Christmas in TX
Christmas in TX
Christmas in Southern CA
Christmas in Southern CA
Christmas in CA
Christmas in CA

My husband David and I were so happy to host several dinners for the friends we call family and were thrilled by a surprise delicious holiday dinner delivered by friends who wanted to make sure we were covered…

Turkey with the Trimmings for Christmas Eve Dinner
Turkey with the Trimmings for Christmas Eve Dinner

Yes, we did take some walks on the beach this week, even with the stormy weather, here’s a shot and a selfie from yesterday as the clouds disbursed (notice how David is NOT smiling, but we did have a nice walk)…

Stormy Beach Day December 2023
Stormy Beach Day December 2023
Stormy Beach Day December 2023
Stormy Beach Day December 2023

I hope you are having a wonderful holiday season and have great plans for this weekend.  As we look back over 2023 try to remember the good times and let’s create some great memories in 2024.  My new mantra ONLY POSITIVE THOUGHTS AND GOOD DAYS FOR EVERYONE!  My wish is that 2024 will be a year of health and happiness and only good things.

WEEKLY TAKE AWAY

A friend passed away suddenly this week.  She was an inspiration to me and many of those who knew her.  She was someone who enjoyed life and her family and friends to the fullest. Even though she was way too young to pass at 64 she is a reminder to us all it’s the quality not the quantity that’s key. So let’s focus on the positive and only have good thoughts as we welcome in 2024.

TAX ISSUES/TAX PLANNING

IRS Updated Guidance on Electric Vehicle (EV) Tax Credits

Last week the IRS and the Treasury issued new regulations in regard to the Commercial Clean Vehicle Credit under the Inflation Reduction Act of 2022. The act provides tax credits for “clean vehicles”, both new and used.  One recent issue that has come to light involved the mineral and battery component requirements for these electric vehicles as one of the goals of the 2022 law was to develop more U.S. manufacturing capacity for EV batteries without relying so heavily on components from China, (now considered a “foreign entity of concern”).  U.S. production continues to rely heavily on imports from abroad. On Tuesday, the IRS updated its frequently asked questions (#13 & 14) in Fact Sheet 2023-29 to offer more guidance related to the critical mineral and battery component requirements for the New, Previously Owned, and Qualified Commercial Clean Vehicle Credits. These FAQs in the IRS Fact Sheet show publication dates.

  • Question 13 asks, “If I place a vehicle in service in 2024, and it has battery components manufactured by a foreign entity of concern but it meets the critical mineral applicable percentage requirements for 2024, does my vehicle qualify for the $3,750 portion of the new clean vehicle credit for meeting critical mineral requirements?”
    • The answer is no.
  • Question 14 asks, “Is a qualified manufacturer required in its written report to make an attestation under penalties of perjury, demonstrating compliance with the foreign entity of concern requirements of section 30D?”
    • The answer is yes.

For a general overview of the credits please refer to my blog post from August 25th “Tax Planning Starts in Your Driveway”

Timing is Not Everything, But It’s Something

My weekly blogs have been pointing out the opportunities for tax savings, this ends today for 2023, 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 strategies for 2023:

  • 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 (see my blog post from November 3rd)
  • Purchase and place a much-needed piece of equipment into service for your business and then discuss options for writing it off to your advantage
  • Make a payment on an outstanding business invoice and take the deduction in 2023
  • 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) (see my blog post from December 1st)

ECONOMY

US Business Activity Picks Up in December- S&P Global Survey

“U.S. business activity picked up in December amid rising orders and demand for workers, which could further help to allay fears of a sharp slowdown in economic growth in the fourth quarter.  All the improvement came from the services sector, with manufacturing activity declining further.  The survey followed upbeat news on the labor market in November. The holiday shopping season also got off to a strong start, with retail sales outperforming expectations in November, data showed on Thursday.  The run of better-than-expected data prompted the Atlanta Federal Reserve to boost its gross domestic product growth estimate to a 2.6% annualized rate from a 1.2% pace. The economy accelerated at a 5.2% rate in the third quarter.”

Holiday Debt Hangover Poised to be ‘Particularly Nasty’ this Year

While retail sales are strong, typically an indication of a healthy consumer, an industry economist is deeply concerned about how consumers will pay it all off when the bill comes. Bankrate senior industry analyst Ted Rossman’s concerns were heightened, in particular, after noticing an uptick in usage for buy now, pay later (BNPL) services as consumers battle growing debt obligations. These payment services were up 40% year over year on Black Friday and Cyber Monday, according to data from Adobe. This uptick suggests that “a lot of people are close to the edge,” and it’s one reason why Rossman believes the “holiday debt hangover could be particularly nasty this year.”

US Public’s Downbeat View of Economy is Real

As reported in a recent article in Reuters:  “Whether it’s the “collective trauma” cited by the American Psychological Association (APA) or the bad “vibes” noted by internet analysts, there has been a clear break between the U.S. economy’s performance and public attitudes about it, according to new research from the Chicago Federal Reserve.  Researchers at the regional Fed bank studied measures of consumer and business sentiment and found a schism occurred in the spring of 2020 when the onset of the coronavirus pandemic posed mortal risk to the entire country and reordered the economy in ways that are still not fully understood.”

Stock Market News: S & P 500 Sits Within a Fraction of Record as Stocks Set for Final day of Roaring 2023

As I googled weekly financial news this AOL article popped up “Stocks poked mostly higher on Thursday as a high-flying 2023 neared an end on Wall Street…the S&P 500 (^GSPC) hovered near an all-time closing high of 4,796.56 for the second straight day.  Stocks entered Thursday looking to amass a ninth straight week of gains. If the S&P 500 does notch another positive week, it would be the longest weekly winning streak for the benchmark average since 2004.”

How Many Times Will the Federal Reserve Cut Rates? Here’s What Wall Street Expects in 2024.

“Since its last interest rate hike in July, it seems the Fed has made solid progress in lowering inflation without hurting the labor market and broader economy. This has spurred many analysts on Wall Street to forecast significant interest rate cuts next year. The survey:

  • UBS: The Fed will cut interest rates by 275 basis points
  • Macquarie: The Fed will cut interest rates by 225 basis points
  • ING Economics: The Fed will cut interest rates by 150 basis points
  • The market: Investors expect the Fed to cut interest rates by 125 basis points
  • Barclays: The Fed will cut interest rates by 100 basis points
  • The Federal Reserve: The Fed expects to cut interest rates by 75 basis points
  • Goldman Sachs: The Fed will cut interest rates by 50 basis points”

GENERAL RESOURCES

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