Weekly Digests

With summer coming to an end and fall closing in the sun is rising later each day (sunrise was 6:42 today), I can take my time starting off on my morning walks.  This morning at 6:25, I was admiring the cloud formations and sky as I walked to the top of the berm at the beach. The sky looked ominous but beautiful while the water was smooth, just right for whale 🐋 or dolphin 🐬 sighting, AND there it was, the fin of a dolphin breaking the water on my block. I walked watching the water and saw it surface several times but was not able to catch it in my photos. I did take some cool pictures of the sky, surf and beach, and of the sun finally rising as I sat on the walkway to write this week’s blog introduction…

Most of my staff and I worked through this last weekend with several late nights in order to meet our major tax work deadline Monday the 16th, so I am grateful to be able to start those really hard days with a walk on the beach, even on overcast mornings..

On Tuesday night I took another trip down the block to capture the partial eclipse over the water…

Tax season 2024 is not over yet, extended trust returns are due September and extended personal tax returns and C Corporations are due October 15^th, but with some pressure off me I am hoping to spend some time “puttering” in my garden as it seems summer-fall tax season is also green fig season…

I am hoping that most of you have great plans for the weekend and that includes my staff and I since we met our Monday deadline!

Weekly Take Away

I believe TEAM WORK is critical not just meeting for deadlines, but more importantly for excellent outcomes with less pressure on everyone involved.  During our office “tax season post mortem” we discussed how these hard deadlines helped bring us closer together and how considering the person following us for the next step in our process helped us achieve our goals, improve our process and reduce our stress level.  As hard as these deadlines are, I believe they force us to learn, grow and communicate better. Thank you to my great staff, my team, you are so very much appreciated!!!

TAX ISSUES/TAX PLANNING

The Automatic 6-Month Extension Deadline is Approaching

If you were unable to file your tax return by the April 15th/16th deadline, you should have filed your 2023 extension with any balance due and possibly the first estimate for 2024.  We are coming up to the filing deadline of October 15th, which if not met may cause additional penalties and interest.

Still Time to Make Annual SEP/IRA Plan Contribution

The upcoming individual tax return filing deadline of October 15th is also a deadline for funding your company’s SEP/IRA for sole proprietorships.  This is a great tax minimization planning technique, take the funds from the tax liability pocket and put them into the pension plan pocket where they can grow tax free until retirement or required distribution dates.

ECONOMY

Economic Data is Pointing to a Soft Landing in the US Economy

This recent article in BusinessInsider.com sites Toresten Slok, Apollo chief economist:  “The US economy is cruising toward a soft landing with no recession on the table, according to Apollo chief economist Torsten Sløk.  In a note over the weekend, Sløk analyzed recent employment data and found no signs of an imminent recession and plenty of signs that point to a period of solid and sustainable economic growth.  “The bottom line is that the US economy is not in a recession, and there are no signs of a recession on the horizon,” Sløk said.  Some of the encouraging data points for Sløk include the August employment report, which showed a decline in the unemployment rate to 4.2% from 4.3%, even though the 142,000 jobs added to the economy slightly missed economist estimates of 164,000.”

The Federal Reserve Starts Cutting Interest Rates in a Big Moment for the Economy

As reported in this recent article in NPR.org:   “The Federal Reserve moved aggressively Wednesday to start cutting interest rates as its single-minded focus on fighting inflation gives way to a growing interest in protecting the job market.  The central bank lowered its benchmark interest rate by half a percentage point, which will make it cheaper to get a car loan, finance a business or carry a balance on your credit card.  Wednesday’s rate cut is the Fed’s first since 2020, but it won’t be the last. On average, members of the Fed’s rate-setting committee expect borrowing costs to drop by another half a percentage point this year and an additional full point next year. That’s a more rapid decline than committee members were projecting just three months ago.  The shift to lowering interest rates marks a major turning point in the Fed’s two-and-a-half-year battle to curb inflation. The central bank began raising rates in March 2022 in an effort to tamp down demand and bring prices under control. By last summer, interest rates had climbed to between 5.25% and 5.5%, their highest level in more than two decades.”

Small Business Optimism Dips in August

According to the recently released NFIB Research Center Economic Report:   “NFIB Small Business Optimism Index fell by 2.5 points in August to 91.2, erasing all of July’s gain. This is the 32^nd consecutive month below the 50-year average of 98. The Uncertainty Index rose to 92, its highest level since October 2020. Inflation remains the top issue among small business owners, with 24% of owners reporting it as their top small business operating issue, down one point from July.”

US Census Bureau Business Formation Statistics Monthly Data Release

As reported by The U.S. Census Bureau in their August 2024 Business Formation Statistics Report (BFS) released on September 12th:  “Business Applications for August 2024, adjusted for seasonal variation, were 431,928, an increase of 2.5 percent compared to July 2024.

The Census Bureau is projecting that 28,927 new business startups with payroll tax liabilities will form within 4 quarters of application from all the business applications filed during August 2024. The 2.6 percent increase indicates that for August 2024 there will be 2.6 percent more businesses projected to form within 4 quarters of application, compared to the analogous projections for July 2024.”

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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