As reported in this recent article from WashingtonPost.com: “The Federal Reserve cut interest rates last week for the first time in four years, putting an end to its longest cycle of rate hikes in roughly a decade. “This will improve the material well-being of all Americans,” said Joe Brusuelas, chief economist at RSM US. The Fed lowered rates by a half percentage point. Any decrease in the central bank’s benchmark rate will ripple through the stock market, hiring, government bonds, and mortgages and other kinds of loans. Michael Madowitz, principal economist at the Roosevelt Institute, said the rate cut will be “great news for the middle class.” “Not only does it underscore the Fed is convinced that inflation is coming under control, it signals the economy has recovered to a faster, sustainable growth trajectory and is ready for further investments in job creation,” Madowitz said Tuesday in comments emailed to The Washington Post. “Lower rates should bring billions more in long-term investments off the sidelines, and create thousands more long-term jobs.”
Weekly Update–September 27th 2024-Counting Figs 🌿 & Days 📅 Until the End of Tax Season 2024
It’s countdown time here again with extended 2023 trust returns due Monday the 30th, but we made it to this deadline too. Yes, it seems it’s always tax season here as we start the next countdown for extended 2023 individual and C Corporation tax returns, due October 15th. It’s also green fig season in my garden, we have harvested over 200 super sweet ripe ones and have run out of containers. We ask that you stop by and BYO, container 🫙 that is…


Ever changing weather means ever changing tides and skies at sunrise, it’s always nice to be out on the beach, even on those overcast mornings…





This morning it was just me and the piping plovers…

I’ve checked my app for the weekend weather and it looks like more of the same, some rain, some sun, some cool fall temperature, I hope you have great plans
Weekly Take Away
One person’s trash is another person’s gold. So true for me, as the arm on the elliptical we purchased with my daughter’s dorm deposit refund (she graduated in 2009) broke for the second time and we decided to replace it with a better model. She searched on Craigslist and found one that is an adaptive motion trainer (elliptical, climber, cycle, etc) and it arrived yesterday. I was happy to pass my 20+ year old Schwinn 430 to a friend who ordered $100 of replacement parts and is giving it a new home. Big wins for us and the machines, and we are recycling too!

Adaptive Motion Trainer
TAX ISSUES/TAX PLANNING
Business and Individual Tax Relief in Place for Those Affected by Weather Events
Connecticut and New York • Louisiana • Pennsylvania • Have until February 3, 2025, to file and make payments. As per IR-2024-234, Sept. 10, 2024 :
“The tax relief postpones various tax filing and payment deadlines that occurred from Aug. 18, 2024, through Feb. 3, 2025 (postponement period). As a result, affected individuals and businesses will have until Feb. 3, 2025, to file returns and pay any taxes that were originally due during this period.
This means, for example, that the Feb. 3, 2025, deadline will now apply to:
- Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the storm occurred.
- Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025.
- Quarterly payroll and excise tax returns normally due on Oct. 31, 2024, and Jan. 31, 2025.
In addition, penalties for failing to make payroll and excise tax deposits due on or after Aug. 18, 2024, and before Sept. 3, 2024, will be abated, as long as the deposits were made by Sept. 3, 2024.”
Follow these links for the specific details for each:
The Automatic 6-Month Extension Deadline is Approaching
If you were unable to file your tax return by the April 15th/16th deadline, you should have filed your 2023 extension with any balance due and possibly the first estimate for 2024. We are coming up to the filing deadline of October 15th, which if not met may cause additional penalties and interest.
Still Time to Make Annual SEP/IRA Plan Contribution
The upcoming individual tax return filing deadline of October 15th is also a deadline for funding your company’s SEP/IRA for sole proprietorships. This is a great tax minimization planning technique, take the funds from the tax liability pocket and put them into the pension plan pocket where they can grow tax free until retirement or required distribution dates.
ECONOMY
What the Federal Reserve’s Rate Cut Means for Consumers, Businesses and Investors
Do the Benefits of the Expanded Child Tax Credit Actually Fade with Time?
As discussed in this recent article from Vox.com: “In 2021, the US cut child poverty by as much as 40 percent using one of the most effective anti-poverty tools the country had ever devised: the expanded child tax credit (CTC). A new study argues the long-run benefits outweigh the costs nearly 10 to 1. In 2021, the US cut child poverty by as much as 40 percent using one of the most effective anti-poverty tools the country had ever devised: the expanded child tax credit (CTC). By sending unconditional monthly checks of up to $300 per child to the nation’s poorest families — including those with little to no income who had typically been excluded from such programs — the “child allowance” lifted 2.1 million children out of poverty who would’ve otherwise been left behind. Arguments against such programs that give unconditional cash usually assert that it’ll drive low-income people to quit their jobs, ultimately harming the economy. But research found little to no drop in employment rates as a result of the expanded CTC. Yet despite a flurry of support from prominent economists and recipients alike, politicians failed to reach an agreement to make the temporary expansion permanent, and Congress let it expire at the end of 2021.”
US Economy on Solid Ground as Retail Sales Surprise on the Upside
As reported in this recent article from Reuters.com: “U.S. retail sales unexpectedly rose in August as a decline in receipts at auto dealerships was more than offset by strength in online purchases, suggesting that the economy remained on solid footing through much of the third quarter. The report from the Commerce Department last Tuesday also showed retail sales were a bit stronger than initially thought in July. It combined with the decline in the unemployment rate last month to push against financial market expectations for a half-percentage-point interest rate cut from the Federal Reserve on Wednesday. U.S. central bank officials started a two-day policy meeting last Tuesday.”
The Federal Reserve Unveils Oversized Rate Cut as it Gains ‘Greater Confidence’ About Inflation
As reported in this recent article from Reuters.com: “The U.S. central bank on Wednesday kicked off an anticipated series of interest rate cuts with a larger-than-usual half-percentage-point reduction that Federal Reserve Chair Jerome Powell said was meant to show policymakers’ commitment to sustaining a low unemployment rate now that inflation has eased.”
- US central bank kicks off easing cycle
- Fed’s policy rate lowered to 4.75%-5.00% range
- Policymakers see another 50 basis points of cuts in 2024
- Fed Governor Bowman dissents; preferred smaller cut
How Resilient is the US Consumer?
As reported in this recent article from FT.com (Financial Times): “With the US Federal Reserve turning its focus more squarely to economic growth, investors are increasingly splitting their attention between inflation indicators and other measures of prosperity and mood.”
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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