Weekly Update – July 29th 2022
It may just be back to “business as usual” for summer 2022 as we’ve enjoyed great weather and I hear about vacation plans and see photos of family gatherings. I am in week 5 of rehabbing my hip replacement and am now able to enjoy the weather as my daily physical therapy walk includes the handicap ramp onto the beach at the end of my block.
I know I am not really walking on the beach yet, but there is some sand under my feet as I walk on the special blue mat at the end of the ramp…
This week I have new incentive to “get back to my old self” as I received photos from my kids and niece kayaking; I want to join the fun.
Gourdneck Lake, Portage MI
Ship Bottom, LBI, NJ
Am I jealous, not really, just all fired up to join the fun and this leads me to…
Weekly Take Away
I have worked to stay in shape and eat well for my health and so I could participate in family activities and create great memories. Twenty plus years later we continue to tell stories of our early ski trips with close family friends starting when our kids were 5 and 3. Back then I carried their ski poles and their extra ski clothes tied around my waist. Now I have great ski buddies to vacation with. This April my hip pain sidelined me. Even though I was able to “spin” for an hour a day leading up to the day of surgery, I was not able to join my family for our annual ski trip to Snowbird, UT. Having this hip surgery is critical for my continued quality of life and this week’s photos of my family kayaking reinforced my determination to get back in shape and stay healthy and able to join them once again. Next year in Utah!!!
TAX ISSUES/TAX PLANNING
Secure Act 2.0 Can Help Small Businesses and Their Employees
We are following the progress on this tax law as it heads back to congress after passing in the senate. The Securing a Strong Retirement Act (H.R.2954), is still in flux, but as we wait for passage we anticipate this will be beneficial for small businesses and their employees as only 1 in 4 small and midsize businesses offer employer-sponsored 401(k)s:
- The Secure Act 2.0 package includes a proposed Starter 401(k), similar to an IRS so that even the smallest business can offer something to employees.
- The legislation also offers new and expanded tax credits to small businesses offering retirement plans. Those businesses with up to 100 employees would get a tax credit equal to 100% of the administrative costs, capped at $5,000 annually
- The package would give small employers a tax credit of up to $1,000 per employee in the first year of a defined contribution plan, phased out over five years.
In Case You Missed it: Great News for NYS Vacation Home Owners Who Live Out-of-State
We Love NY, but sometimes the tax law does not lover out of state owners of NYS vacation homes. This changed last week with new case law Nelson Obus et al., v New York State Tax Appeals Tribunal. It seems that the court has taken more than just the day count and unfettered access into account, it has included logic!
A New York appeals court ruled that a seldom-used vacation home in New York cannot be considered a “permanent place of abode” for statutory residency purposes. The taxpayer lived in New Jersey but worked in New York City, so he spent more than 183 days in NY. He and his spouse maintained a vacation home upstate which they only used for 3 weeks a year and did not keep their personal things there. As the vacation home was four hours from his work location and and even though the home was large and definitely suitable for year-round use, the court discarded any sort of objective test to determine whether the place was a “permanent place of abode” for the taxpayer. Instead, since the case involved something so fact-specific as residency, an inquiry into the subjective aspects of the taxpayer’s use of the abode was required. This is a huge development in the New York residency area and will have an significant impact on how statutory residency cases are handled in the future.
You can read a very detailed article on this by Tim Noonan of Hodgson Russ LLP and may consider some tax planning related to this new development.
IRS Releases 5-Year Strategic Plan
Last week, the Internal Revenue Service released a new five-year Strategic Plan that outlines its goals to improve taxpayer service and tax administration. Details can be found here.
5 Things That Financial Experts Say Are Always Worth Spending Money On
BusinessInsider.com recently published this article which lists 5 things they say are always a good investment and should be worked into your budget.
- Quality staple items such as your wardrobe, furniture, kitchen basics
- Your health: preventative care like eating healthy foods, working out with an app or at the gym, appropriate health insurance
- Self-care: dedicating time to hobbies or interests, working with a therapist
- Things that buy you time like assistance with cooking or cleaning so you can work extra hours
- Experiences such as family vacations, concerts, etc. which create those memories that last a lifetime
Read their full article here.
Social Media Shares Tumble, But Traders Feel Optimistic
Stocks wobbled last week as investors digested new corporate earnings information. Social media companies took the brunt of the fall, with disappointing results announced all around.
Russia Cuts Key Interest Rate Despite Challenging Economic Conditions Due to Sanctions
Russia’s Central Bank cut its key interest rate by 150 basis points from 9.5% to 8% on Friday, citing a slowing of inflation. The ruble has seen an unexpected rebound after plummeting in the days following Russia’s invasion of Ukraine.
Housing Market Cools Down Even Further
The Fed has aggressively raised short-term interest rates to fight inflation, which pushes mortgage rates higher. This combined with already-high home prices is discouraging would-be buyers.
- 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 all in this together!
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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