Weekly Update – Feburary 17th 2023
I know I am a bit crazy, but I really do feel there are certain benefits to getting up and out by 6:30 (even when on vacation,) and earlier when you have an early morning commitment. Today it was a 1 hour trip to downtown Brooklyn to the Long Island University Brooklyn campus to participate as a judge for the Virtual Enterprises International, Inc. (VEI) NYC Business Plan Competition. The last opportunity I had to judge and participate in person was February 2020. As a member of the VEI NYC advisory board it Is a privilege and a pleasure to meet and observe these dedicated high school students present their ideas to an independent panel. I am so glad to be able to meet them and offer feedback that may enable them to advance in the national finals and improve their business model. Think “Joel Goodman from “Risky Business” as a future Enterpriser of America.
We had a great time with friends and family in Miami, the weather was great and we were able to take an early morning walk along the bay front, over a bridge along the way which led us to Brickell Key/Burlingame Island…
Just like Dorothy, for me there’s no place like home and I am happy to say that our weather, is pretty moderate for February. At 53 degrees I cannot go barefoot, but I was glad to be able to walk this morning with just a fleece and vest….
This photo shared by my son-in-law Jeff looks like they are having amazing weather in Michigan too, what you can’t tell is that the lake is freezing over…
I am looking forward to be able to stop off in Michigan on my way to Snowbird, Utah for my after tax season ski trip; I have been receiving photos of my new “grand-dog” Rory (a blue Whippet) as he grows big enough to leave his mom and siblings. Jeff and Emily expect to bring him home once he 10 weeks old, at the end of March…
WEEKLY TAKE AWAY
I am glad that although I don’t use this setting, my Samsung Android cell phone can track my steps. I usually judge my running or walking workout based upon knowing my location and turnaround points; for my indoor workouts I use the time and distance tracker on my equipment. While away in Florida last week I convinced my husband to “walk to the bay wall for a Brickell Bay sunrise photo” for my blog (does that make my trip partly tax deductible, hmmm). It was a beautiful morning, so once we were outside we just continued to walk and ended up crossing over a bridge which took us to Brickell Key/Burlingame Island. Based upon the time, we estimated that it was a 3-4 mile walk. Later while sitting in the airport he checked his cell phone and was surprised that even though we walked at least a mile through the airport and a few miles through Coral Gables after breakfast he had only clocked 4.3 miles. We realized that he had left his phone charging in the Airbnb that morning. Good thing I had my phone with me. You probably think this week’s takeaway is about setting up your phone to “multitask”; NO it is to include your wife in your trek so that you can document your full mileage for the day, well maybe both.
TAX ISSUES/TAX PLANNING
Tax Planning is an Important Ingredient in Smart Business Practices
- travel considerations can provide an opportunity for a mini vacay as long as specific rules are followed and supporting documentation maintained
- entity seclection coupled with tax incentives (Federal/State/City) can result in a lower tax bill
- employee benefit packages can help retain your employees and encourage prospective employees to join your business or practice (and help reduce your current tax bill)
- timing can be everything; planning expenditures can reduce your taxes while improving processes
Tax consequences as a Recipient of a GoFundMe Campaign
For Individuals: As part of GoFundMe’s Terms and Conditions, you have represented that you are not providing any goods or services in exchange for the donation of funds. Donations made to personal GoFundMe fundraisers are generally considered to be “personal gifts” which, for the most part, arenot taxed as income in the United States. Additionally, these donations are not tax deductible for donors.
For Businesses: Like any oher income, grant funds are usually considered income (certain government programs may not be) and must be reported on tax returns. Related expenses that are ordinary and necessary would be allowable.
Updated Tax Credits For 2022
- child and dependent care credit (no longer refundable for 2022)
- child tax credit -income limit is $400,000 (Married Filing Jointly) and $200,000 (Single or Head of Household)
- earned income credit -for working families with or without children and investment income must be $10,300 or less
- retirement savings credit – this is limited based upon age, filing status and work status
- premium credit (health ins credit)
- tuition credit – Qualified education expenses such as: tuition, required student activity fees, books, supplies and equipment such as a computer, and other related expenses, (room and board and other personal living expenses are NOT expenses that qualify for education credits).
- adoption credit – non-refundable, but any excess credit may be carried over to future years (with a 5 year maximum)
- residential clean energy credit -this is enhanced for 2022 and beyond
- energy efficient home improvement credit -this is enhanced for 2022 and beyond
Stock Market Starts the Week Strong Ahead of Inflation Data
Wall Street started the week noticeably higher as investors await inflation which will hint at the path of the Federal Reserve’s future interest rate hikes. Here’s the link to this week’s chart by Market Watch.
Further Rate Hikes May Not be Necessary
Some economists believe that inflation may ease faster than initially thought, making further interest rate hikes unnecessary. Official numbers are due later this week.
Ford Plans to Build Electric Vehicle Batteries in Michigan
Ford is investing $3.5 billion to build a battery factory in Michigan that will produce low-cost batteries for some of its electric vehicles. The factory will use technology licensed from the Chinese battery company CATL.
Guidance on a New Program to Undertake Green Energy Projects in Low-Income Communities
The Department of the Treasury and the Internal Revenue Service announced a program to provide solar and wind power to certain low-income areas under the Inflation Reduction Act. Details can be found here.
Further Job Cuts are Expected at Meta
Meta is preparing to make a fresh round of job cuts, expected to take place around March, but it’s still unclear how many people could be affected.
Reinstalled Chief Executive Bob Iger is seeking to cu
Disney Cutting 7000 Jobs
t $5.5 billion USD from its annual costs to drive profits. He is also under pressure to make Disney+ profitable and find new ways to monetize the Disney catalog.
- 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 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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