Weekly Update July 7th 2023
It’s a beautiful day here in Michigan where we are visitng for an extended weekend. We have great plans for the next few days so this week’s blog will be short and sweet We arrived late last night; here is my view as I write today’s blog…
I am glad we were finally able to visit and not only spend time with our daughter and son-in-law, but also meet our new granddog Rory…
The weather July 4th was a bit “iffy” by us, but sometimes the clouds and sun create increadible shots…
I am hoping you have great plans for your weekend as well. We will certanly do a fair amount of paddling…
WEEKLY TAKE AWAY
I was feeling very pressured this week between work issues, battling bugs in my garden, and volunteer committments; I was even dreading packing for my much anticipated weekend . I woke up at 5:30 yeasterday morning feeling so refreshed after a great night’s sleep (not sure if it was exhaustion or the air conditioning); it felt like 7:30. I was able to hunt bugs, row on my concept II erg, take a short walk on the beach, attend our weekly office huddle, pack, and get to the airport in plenty of time. Yes I even had time to answer emails, hold client meetings and shower. A good night’s sleep may be just the best medicine, my great sleep set me up for a succdessful day which I started with a great attitude.
TAX ISSUES/TAX PLANNING
Gifts to Clients and Staff Can Be Deductable
We all know the answers to many questions are “it depends” and “document, document, document”. Gifting when done properly can be a valuable business tool and deductable as well. People who know me and my staff send gift baskets with semi-healthy junk food and chocolate during the beginning of tax season. It’s fun to open the box and then chat with the sender for a bit. We think about the sender even as we contiune to munch. So you can check off the “ordinary and necessary business expense” requirement for a gift basket to the office of an associate who sends you business and/or takes care of your business needs. There are regulations for the amount of gift, the recepitient and frequency.
Here’s the detail from the IRS FAQ’s rules for gift giving:
If you give business gifts in the course of your trade or business, you can deduct all or part of the costs subject to the following limitations:
- You deduct no more than $25 of the cost of business gifts you give directly or indirectly to each person during your tax year.
- If you and your spouse both give gifts to the same person, both of you are treated as one taxpayer.
- Incidental costs such as engraving, packing or shipping aren’t included in the $25 limit if they don’t add substantial value to the gift.
- For purposes of the $25 per person limit, don’t consider gifts costing $4.00 or less that have your business name permanently engraved on the item and which you distribute on a regular basis.
- Any item that could be considered either a gift or as entertainment is generally considered entertainment and cannot be deducted.
- You need to have records that prove the business purpose of the gift as well as the details of the amount spent.
Federal Reserve Board Releases Results of Annual Bank Stress Test
The Federal Reserve Board on Wednesday released the results of its annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession.
United gives 30,000 Frequent Flyer Miles to Travelers Hit by Flight Delays, CEO Says Schedule Cuts Needed
United Airlines is offering 30,000 frequent flyer miles to customers affected by flight disruptions. The airline had outsize flight delays over the past week that kicked off with bad weather.
White House Announces $42 Billion Plan to Expand High-Speed Broadband Access Across the US
The White House has announced a plan to distribute $42 billion among all 50 states in order to improve access to high-speed broadband by 2030.
Supreme Court Votes Against Biden Student Loan Forgiveness Program
The Supreme Court voted 6–3 on June 30 to strike down President Joe Biden’s controversial plan to partially forgive student loans.
IRS Rescinds COVID Relief for HDHP Plans
The Treasury and the Internal Revenue Service have rescinded pandemic-era guidance that allowed high-deductible health plans to cover COVID costs.
- IRS resources for stimulus payments:
- IRS information about 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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