Weekly Update – January 12, 2024 ⛈️❄️☀️Tax Season 2024 Begins!!!!

We are now through the second week of 2024 and some of us have not made it back into the office after the holidays due to the flu, a cold that has been making the rounds or some stormy weather.  I have been “OD”ing on cups of hot tea with honey, lemon and ginger and my homemade chicken soup to help fight this nagging cold.  It seems to be working as I plan to meet with a friend  for a Dim Sum lunch 🥟🍜 in Kew Gardens today.  Certainly, bundling up as I trekked through the stormy weather ⛈️ has helped clear my head as we work through year-end numbers crunching to calculate the 2023 estimate #4 due January 16th.  I know that we got a lot of rainy weather 🌧️ in NYC this past week, but my family and friends have reported some heavy snowfall 🌨️❄️, not so for the California and Florida contingency but they did report colder than normal weather for this time of year.

As I watched the weather forecast I thought of family and friends in places know for cold snowy weather and thinking it’s time to light a fire in the fireplace, and curl up with a good book and a cup of hot chocolate…

Warwick NY, 12 Inches and Counting
Warwick NY, 12 Inches and Counting
Snowy Morning in Michigan
Snowy Morning in Michigan

My granddog Sampson who I’ve mentioned as living the life of a California teen waited out the stormy weather sitting on the patio of a local beachside bar/restaurant beside the firepit with his mocktail wearing the venue’s signature bandana…

Sampson in Southern CA
Sampson in Southern CA

I was happy to see that the newly constructed beams and beach replenishment were working.  As we ventured out Wednesday morning at sunrise it was high tide and the ocean came right up to the base of the berm…

Wednesday at High Tide
Wednesday at High Tide
Wednesday Along the Top of the Berm
Wednesday Along the Top of the Berm

As the storm cleared we were able to walk along the shoreline, kept intact by the berm and new jetties…

Thursday as the Storm Cleared and Tide Receded
Thursday as the Storm Cleared and Tide Receded

I am glad we have a few days of warmer clear weather forecasted for most of this 3 day weekend, and hope you have some great plans to enjoy it with friends and family before the snow hits again on Tuesday.

WEEKLY TAKE AWAY

Our office has been reviewing year-end data with our clients to help project their 2023 tax liability and prepare estimate #4 for the 2023 tax year due on Tuesday.  The numbers are a bit harder to swallow for those whose current year liability and projections are built on estimates from prior years which are still on extension for 2022 and prior. In some cases, they are due a refund or have overpayments which can be credited to their 2023 taxes. In other cases, they are in jeopardy of losing the refunds from prior years.  We know you hate going through your paperwork, but I think you would regret missing out on tax minimization opportunities or refunds more. I have started my own 2023 tax return review work in the hope of filing without an extension this year. Who wants to join me with some “new year’s resolution #’s: #noprocrastination #noextension #nomissedopportunities

 

procrastination
procrastination

TAX ISSUES/TAX PLANNING

IRS E-File System Will Open Next Week

The IRS has posted their e-file operational status for the 2024 filing season.  They have and continue to update the required forms and calculations and will start accepting tax return again as follows:

  • Corporation, Employment Tax, Estates and Trusts, Excise Tax, Exempt Organization, Individual, and Partnership Tax Returns at 9:00 am Eastern on January 16, 2024
  • All individual tax returns at 9 a.m. Eastern on January 29, 2024

Deal in the Works for Tax Breaks for Businesses and Families

As I follow the news, I am glad to share this excerpt from an article my from line accounting newsletter:  ” Democratic Senator Ron Wyden of Oregon and Republican Representative Jason Smith of Missouri, chairmen of the Senate and House tax committees, presented an outline of their roughly $70 billion proposal, evenly split between the corporate tax cuts and child credit, to their colleagues as talks continue. The chairmen’s proposal would provide a retroactive renewal for 2023 of an expired research and development deduction, as well as a tax break for the interest incurred on business loans. These tax cuts have been a top priority of U.S. businesses. The tax breaks would be extended through 2025, leaving them to expire at the same time as dozens of other tax cuts that were part of former President Donald Trump’s Tax Cuts and Jobs Act.

ECONOMY

Poll Finds Fewer Americans Expecting Economic Slowdown Now

Most Americans continue to rate the economy negatively, but sentiment has been slightly improving of late, and Americans now think the longer-term outlook appears more stable.

US Bankruptcies Surged 18% in 2023 and Seen Rising Again in 2024

Recently published data shows  “U.S. bankruptcy filings surged by 18% in 2023 on the back of higher interest rates, tougher lending standards and the continued runoff of pandemic-era backstops. Bankruptcy case counts are expected to keep climbing in 2024, though there is still some distance to go to top the 757,816 bankruptcies filed in 2019, the year before the pandemic struck.”

2023 Housing Market Rollercoaster: Surprises, Challenges, and Predictions for 2024

The housing market in 2023 took an unexpected turn, with home sales plummeting by 17% from February to October. Despite this, home prices soared to record highs, increasing by 7% since the start of the year. Mortgage rates also spiked, reaching nearly 8% – the highest level in 23 years.  Many people I know continue to be hopeful that interest rates will start to go down, making homeowership more affordable, but we have seen that housing prices increase when that happens.

 20 Most Financially Savvy States

Most people seem confident that they have a good handle on their financial affairs, but to make the most of them, you can never know too much. To find out where individuals have the best understanding of money matters, WalletHub rated the 50 states and Washington, D.C., on financial planning/habits and financial knowledge/education.  Sadly NY did not make the top 20.

US National Debt Hits Record $34 trillion

Last week it was widely reported that the U.S. government’s total debt had topped $34 trillion for the first time, and this was just weeks before the deadlines for congress to agree to new federal funding plans.  This article from CNN gives more detailsData published by the Treasury Department showed that “total public debt outstanding” rose to $34.001 trillion on December 29. That figure, also known as the national debt, is the total amount of outstanding borrowing by the US federal government accumulated over the nation’s history.

11 Charts That Explain the Year in Business, Technology and the Economy

It has been a confusing year for the economy and markets. At the start of 2023, economists largely predicted a global recession, and Wall Street was bearish on stocks, with many analysts expecting the S&P 500 to finish the year just a touch higher than where it started. Fast-forward 12 months: No recession (yet) and the S&P 500 is tantalizingly close to a record high. Here are 11 charts that help explain how we got here.

GENERAL RESOURCES

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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