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I looked up my blog post from last year (July 28th)  and see that some things never change.  Wednesday morning was a bit hectic as I prepared for my trip to Detroit for the 2024 annual Certified Tax Coach Reunion.  I woke up early, walked on the beach, took a 45 minute workout on my “pele”, then re-packed, printed some paperwork for the plane and headed out to JFK.  Thanks to Raquel my car also had a reservation in long term parking; all good.  How funny and appropriate that the slogan for this year’s conference is/was: “Reving Up …Tax Strategies in the Fast Lane”.  Our Thursday evening dinner was held at the Henry Ford Museum; I took some cool photos which also included early electric cars.  Seems that “everything old is new again”.  The original cars didn’t go very far or fast; there also were no tax credits for purchases of these cars…

Last weekend’s vacation in Maine was certainly too short, but we did manage to take a hike by the Maine shoreline and make a short trip to a local classic lobster “restaurant” for dinner.  We sat at picnic tables cracking shells and eating corn on the cob and met people from all over the country…

My weekly blog would not be complete without one or two shots from my morning walks.  Wednesday morning my weather app. predicted rain, but the sun won out…

Yes, once again I am admitting “I am a tax nerd”. Attending a conference where I met several like-minded tax professionals and shared tax minimization ideas with them and with some of my monthly “mastermind” group members was certainly something I was looking forward to and I was not disappointed.  I am still digesting some of the notes from Thursday (day #1) and will include some of these along with new information from today’s sessions (Day #2) in my tax minimization plans and blog posts over the next few weeks.  I did text notes and PowerPoint photos to my team as some key points hit home and gave me ideas for specific clients.

Tonight I head to Kalamazoo/Portage MI to visit both of my daughters, their significant others, close friends we call family and my grand-dog Rory, taking advantage of this business trip to get in some family time.  I hope you too have some wonderful plans for your weekend.

WEEKLY TAKE-AWAY

I find when I am deliberate and thoughtful in my selection of a workshop choice when attending a conference with options I am rewarded with insights beyond my expectations AND thrilled to find I engage with wonderful new connections as I meet others in my immediate vicinity.  Just yesterday I sat next to some really great CPA’s who I connected with right away.  So great to get much much more from a session than a pure learning experience. When selecting sessions I also try to remember that I will be sharing the information/lessons learned with the rest of my staff/team when I return home.  My first day at the annual Certified Tax Coach annual reunion was enhanced by meeting new people and by sharing lunch and catching up with my “mastermind group” friends.  Being deliberate and open made my  experience more fun, interesting and valuable…

TAX ISSUES/TAX PLANNING

This year’s annual tax planning conference was very insiprational and eye opening and I was glad to meet several like minded tax professionals and share tax minimization ideas with them as well as with some of my monthly “mastermind” group members.  I am still digesting some of the notes from Thursday (day #1) and will continue to add to my tax minimization tool box which includes allowable deductions, tax advantaged strategies and tax credits as provided for in the tax code:

• income shifting
• ROTH IRA investment strategic planning
• tax deferrals
• potential tax tax free growth and distributions
• benefical solar energy tax reduction
• benefical tax deferred investing
• expense/deduction optimization
• expense shifting

Many times when we onboard a business client our discovery sessions unveil client goals and opportunities for reducing tax liabilites prior to filing extended tax returns and planning for future tax reporting.  Many times a fresh set of eyes, specialized knowledge, advanced training, and connections with thrid party resources coupled with due dilligence is just what the “tax doctor ordered” for a robust multi-year tax plan.  We often find we can convert funds set aside for a tax estimate or balance due to a tax advantaged payment, shifting funds from “one pocket” to another.  I am looking forward to instituting some new strategies into our 2023/2024 tax minimization plans.

IRS Provides Relief to Hurricane Beryl Victims in Texas; Various Deadlines Postponed to Feb. 3, 2025

IR-2024-191 released July 22nd:  “The Internal Revenue Service announced tax relief for individuals and businesses in 67 Texas counties affected by Hurricane Beryl that began on July 5, 2024.

These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business in Anderson, Angelina, Aransas, Austin, Bowie, Brazoria, Brazos, Burleson Calhoun, Cameron, Camp, Cass, Chambers, Cherokee, Colorado, Dewitt, Fayette, Fort Bend, Freestone, Galveston, Goliad, Gregg, Grimes, Hardin, Harris, Harrison, Hidalgo, Houston, Jackson, Jasper, Jefferson, Kenedy, Kleberg, Lavaca, Lee, Leon, Liberty, Madison, Marion, Matagorda, Milam, Montgomery, Morris, Nacogdoches, Newton, Nueces, Orange, Panola, Polk, Refugio, Robertson, Rusk, Sabine, San Augustine, San Jacinto, San Patricio, Shelby, Trinity, Tyler, Upshur, Victoria, Walker, Waller, Washington, Webb, Wharton and Willacy counties qualify for tax relief.

The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.”

Key Reporting Date for Employees Who Work for Tips

For those employees who work for tips, please be reminded that August 12th is a key date for you.  If you received $20 or more in tips during July, report them to your employer. You can use Form 4070.

For a comprehensive view of all the important tax deadlines applicable to each taxpayer, for more on this: see IRS Publication 509.

2024 NYS Empire Tax Credit Checks are in the Mail

This month, the New York State Department of Taxation and Finance will begin mailing checks to more than 1.5 million New Yorkers who received the 2023 Empire State child credit.

If you qualify for a payment, you do not need to do anything special. The Department of Taxation and Finance will automatically calculate and mail you a check for the amount you are entitled to.

• For tax years beginning on or after January 1, 2023, the Empire State child credit includes qualifying children under four years of age.
• To be eligible to claim the Empire State child credit, you must provide a valid Social Security number (SSN) or individual taxpayer identification number (ITIN) for each child listed on your claim.
• You are entitled to this refundable credit if you:
  • were a full-year New York State resident or married to a full-year resident,
  • have a qualifying child*, and
  • meet one of the following conditions:
    • you have a federal child tax credit or additional child tax credit based on the income thresholds in effect for 2017 or
    • your federal adjusted gross income is:
      • $110,000 for Married filing joint
      • $75,000 for single or head of household
      • $55,000 for married filing separately

ECONOMY

In more than 200 U.S. cities, One Million Dollars Only Gets You a Starter Home  

In this recent article from CBSnews.com:   “A typical entry-level home in the U.S. costs roughly $200,000. But in a growing number of cities, that would only cover the down payment. With housing in short supply around the country and the stiffest mortgage rates in years, you need at least $1 million to buy a starter home in 237 cities, according to a Zillow analysis.”

US Economy Regains Speed in Second Quarter; Price Pressures Easing

In this recent article from Reuters.com:  “The U.S. economy grew faster than expected in the second quarter amid solid gains in consumer spending and business investment, but inflation pressures subsided, leaving intact expectations of a September interest rate cut from the Federal Reserve.”

Inflation is Inching Closer To the Federal Reserve’s 2% Target

As recently reported by Edition.cnn.com:  “Another favorable piece of economic data shows price hikes are slowing and that long-unruly inflation appears to be tamed. The Personal Consumption Expenditures price index — a closely watched inflation gauge that the Federal Reserve uses for its 2% target — slowed to 2.5% for the 12 months ended in June from 2.6% the month before, according to Commerce Department data released Friday.”

U.S. economy shows strong 2.8 percent growth, driven by consumers and businesses

As recently reported in  the article by PBS.org:  “The nation’s economy accelerated last quarter at a strong 2.8 percent annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates. Thursday’s report from the Commerce Department said the gross domestic product — the economy’s total output of goods and services — picked up in the April-June quarter after growing at a 1.4 percent pace in the January-March period.”

The Federal Reserve is About to Nod at a Rate Cut as Job Growth Moderates

As recently reported in  the article by Finance.Yahoo.com:  Federal Reserve officials are on the verge of lowering borrowing costs within months, a move Chair Jerome Powell may signal in the coming week as the risks grow of imperiling a solid but moderating job market.

The Federal Reserve’s Preferred Inflation Gauge Cools, Adding to a Likelihood of a September Rate Cut

As recently reported in this article from USNews.com:    The Federal Reserve’s favored inflation measure remained low last month, bolstering evidence that price pressures are steadily cooling and setting the stage[ for the Fed to begin cutting interest rates in September.

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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Contact us if you have tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals.