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Another busy week with some exciting news.  We all yearn to help make a difference in our environment; I have been composting for over 20 years, creating “black gold” for my vegetable garden, flowers and shrubs. Just last night my husband and I started the process to install solar panels on our house.   The US Tax Code is influencing my behavior while enabling me to reduce my carbon footprint.  We will be taking advantage of the tax credits under the inflation reduction act of 2022.   On the beach front the US Army Corps of Engineers is continuing beach replenishment and preservation on my local beach.  They are now working on shoring up and finishing the berm on my block.  We will not have beach access for a week or so, but it is well worth any minor inconvenience…

We will have beach access through the entrance on another beach block and still get to enjoy our beach sunrises, like this one today…

I am certainly enjoying harvesting our annual blackberries, cukes, foot long stringbeans and tomatoes, creating delicious garden to table salads and sharing with my friends and neighbors, gotta love that compost…

This year’s annual cocktail party hosted by the Chinese American Society of CPA’s was a huge success.  It was held at the World’s Fair Marina overlooking  Flushing Bay.  It was great to see friends as I mingled with new ones…

The weather forcast for today and the weekend looks great and I am looking forward to spending time with friends.  I hope you have some great plans too.

WEEKLY TAKE AWAY

In our office we love to say “it’s not a problem, it’s an opportunity”.  Several years ago, Elizabeth and I attended an accounting conference themed around the concept of failure as the key to innovation.   Every one of the key note speakers shared their personal stories of failures which subsequently became catalysts for their accomplishments (business and personal success stories).  Just recently Elizabeth and I worked through 2 projects that did not go as planned and we were pretty disappointed.  We reviewed and tweaked our process, refined our approach and were able to work out the bugs to create a better process, which we used successfully. I truly believe understanding the significance of learning from one’s mistakes is paramount for personal and professional development. 📚📊 🔄 #EmbracingFailures #PavingPathstoSuccess

Footnote: emoji’s and #s supplied by my new friend ChatGPT, I did NOT love their funny take so not sharing it this week “LOL”

TAX ISSUES/TAX PLANNING

Tax Planning Starts at Home With Solar Pannels and Other Home Improvements

If you make energy improvements to your home, tax credits are available for a portion of your qualifying expenses. You can claim either the Energy Efficient Home Improvement Credit or the Residential Clean Energy Property Credit for the year when you make qualifying improvements.  Improvements to your primary residence offer opportunities to claim a credit. If you own a second home and use it as a residence, you may also be able to claim these credits. You cannot take credits for property you rent to others.  Feel free to contact us to help you determine if the benefits offered by installing solar panels, new windows and exterior doors, insulating your attic, etc will be good for your tax returns as well as the environment.

Who Can Claim the Credits:

• You can claim either the Energy Efficient Home Improvement Credit or the Residential Energy Clean Property Credit for the year when you make qualifying improvements.
• Homeowners who improve their primary residence will find the most opportunities to claim a credit for qualifying expenses. Renters may also be able to claim credits, as well as owners of second homes used as residences.
• The credits are never available for improvements made to homes that you don’t use as a residence.

Energy Efficient Home Improvement Credit

These expenses may qualify if they meet requirements detailed on energy.gov:

• Exterior doors, windows, skylights and insulation materials
• Central air conditioners, water heaters, furnaces, boilers and heat pumps
• Biomass stoves and boilers
• Home energy audits

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

• 2022: 30%, up to a lifetime maximum of $500
• 2023 through 2032: 30%, up to a maximum of $1,200 (biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit

Get details on the Energy Efficient Home Improvement Credit.

Residential Clean Energy Credit

These expenses may qualify if they meet requirements detailed on energy.gov:

• Solar, wind and geothermal power generation
• Solar water heaters
• Fuel cells
• Battery storage (beginning in 2023)

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

• 2022 to 2032: 30%, no annual maximum or lifetime limit
• 2033: 26%, no annual maximum or lifetime limit
• 2034: 22%, no annual maximum or lifetime limit

Get details on the Residential Clean Energy Credit.

You can visit IRS.gov/homeenergy for full details including a comparison chart. This chart can help you decide if the credits apply to expenses you’ve already paid or will apply to improvements you’re planning.

ECONOMY

National Federation of Independent Businesses Report That Small Business Owners are Pessimistic

There are 33m small businesses in the US, with about 6m of them employer-owned. Each of these people has their own reasons for feeling less confident about the economy. According to the most recent monthly data from the National Federation of Independent Businesses optimism among small business owners is at a 10-year low.

Federal Reserve Officials are Divided, but Holding Rates Steady in September Seems Likely

Federal Reserve officials meet next month to determine whether to raise interest rates for the 12th time to cool the economy or hold them steady. Some officials think the Fed has already raised its benchmark lending rate enough to curb inflation, but others think it’s too soon to tap the brakes.

The Treasury Inspector General for Tax Administration Faults IRS Cybersecurity Program on 3 Out of 5 Metrics

The Treasury Inspector General for Tax Administration said the IRS cybersecurity program should not be considered fully effective, as three out of five of the criteria outlined in the agency’s framework were considered to be “not at an acceptable maturity level.”

Colorado Warns Hackers Stole 16 Years of Public School Data in Ransomware Attack

Colorado’s state government has warned students and teachers that hackers may have accessed their personal information — dating as far back as 2004/

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 any questions or want to discuss the next steps for your business.