by Leif Jensen | Feb 12, 2024 | General |
In 2024 the Annual Gift exclusion increases to $18,000 per done, so mom and dad can give $36,000 to a child to buy their first home with no gift tax consequences. Also it has no impact on your lifetime estate and gift tax exemption or filing a gift tax return. Annual...
by Leif Jensen | Feb 7, 2024 | Money Management |
I have a client that at one time tried this trick a couple times within a year. I do not recommend it, this is a cautionary tale. The client borrowed money from their traditional IRA. Normal withdrawal with no exceptions, if not rolled over into a new account within...
by Leif Jensen | Feb 5, 2024 | Retirement |
There is a trick available to those who are not eligible to make a Roth contribution for whatever reason. I strongly recommend that you use a financial advisor to assist with this trick. It starts by making a contribution that is nondeductible to your IRA, you can see...
by Leif Jensen | Jan 31, 2024 | Rant |
It seems the race is on as to who can utilize AI the fastest in replacing humans in their jobs. Hollywood had two major strikes on the issue, kicking the can down the road from the imposition of AI into their work lives, without input. Sports Illustrated has deleted...
by Leif Jensen | Jan 29, 2024 | Economy |
It may be the final frontier, but for those looking for more space at an affordable rate is difficult if not impossible. I have one client whose property taxes went from $38,000 to $45,000 to $52,000 in less than five years. Cook County always has their hands in the...
by Leif Jensen | Jan 24, 2024 | Investing, Money Management |
I was recently reading that interest rates and payments were crippling small companies. Just how much costlier is credit these days? Small firms are paying 9.1% on average, per the National Federation of Independent Business. In 2019, the prime rate, the benchmark...
by Leif Jensen | Jan 22, 2024 | Economy |
Housing affordability is at its lowest point in almost two decades. Which my realtor clients can attest to. It has continued to worsen this year as mortgage rates have hovered above 7% since mid-Aug. Jumping to over 8% in November. Affordability is down 8% from a...
by Leif Jensen | Jan 17, 2024 | Money Management |
As the year winds down, a number of clients are suffering from cash flow drop offs. Cash is getting tighter, their clients are not spending, nor are they rushing to pay their bills. They are waiting for signs that the economy will be getting better. It may be a bit...
by Leif Jensen | Jan 10, 2024 | Investing |
As of this writing mortgage rates are over 8% for a 30-year fixed, and over 7% for a 15 year. Auto loans range from over 5% to over 14% based on credit scores. Money market rates from major banks range in the 4.3% range. So, I am thrilled that I was able to lock in a...
by Leif Jensen | Jan 8, 2024 | Rant |
Employee Retention Credit claims Taxpayers should be aware of aggressive pitches from scammers who promote large refunds related to the Employee Retention Credit (ERC). The warning follows blatant attempts by promoters to con ineligible people to claim the credit. The...
by Leif Jensen | Jan 3, 2024 | Rant |
If the IRS determines that fraud exists, fraud penalties could be applied to the additional tax accessed. The fraud penalty is an additional tax of 75% of the portion of the underpayment attributable to the fraud. Filing 941-X or 94-X will not necessarily alleviate...
by Leif Jensen | Dec 20, 2023 | Rant |
If you are claiming after the fact ERC refunds you need to amend filed payroll tax returns. The IRS has issued special statues of limitations for amending: For 2020 payroll tax returns, statute closes 4-15-24 For 2021 payroll tax returns, statue closes 04-15-25 If...
by Leif Jensen | Dec 18, 2023 | Rant |
Due to the perceived popularity of the ERC firms have been popping up and promoting the ERC. While this has been going on the IRS has been issuing advisory warnings of third parties promoting improper ERC claims to employers who may or may not qualify for the ERC. ...
by Leif Jensen | Dec 13, 2023 | Rant |
As someone who has an MBA, but not from a prestigious school. I didn’t have a mentor when I truly needed one. I was surprised to read that large firms are on hold with new hires. Imaging spending at least two years working on your future and being surprised that those...
by Leif Jensen | Dec 11, 2023 | Rant |
I am always curious on a number of topics as this blog has shown in the past. The latest instance was who is reading in the us and what are they reading? So, I found a 2022 Nation survey on US reading statistics. Here are their parameters. “The pandemic shifted the...
by Leif Jensen | Dec 6, 2023 | Running a Business |
For 2023 employers need to electronically file their 1099’s if they are issuing 10 or more! Most vendor charge a $3 fee per form for submission, but you have to retype in all the information. The final regulations reflect changes made by the Taxpayer First Act (TFA)...
by Leif Jensen | Dec 4, 2023 | Running a Business |
For 2023 employers need to electronically file their W-2’s if they are issuing 10 or more! Most vendor charge a $3 fee per form for submission, but you have to retype in all the information. The information also has to be retyped to send to IL as well. Regulations...
by Leif Jensen | Nov 29, 2023 | Running a Business |
If you did not collect new W-9 from vendor’s regularly, you should start collecting them now. A W-9 has all the relevant information to determine if you need to or not issue a 1099-M or 1099-Nec to your vendor. The IRS requires businesses to report payment of...
by Leif Jensen | Nov 27, 2023 | Taxes |
The IRS has issued Brokers guidance on how to comply with reporting rules on digital assets. A 2021 law requires brokers to report the sales price, tax basis and other information on digital asset trades. The rules were scheduled to first take effect for digital...
by Leif Jensen | Nov 20, 2023 | Rant |
Do you use a budget for your Thanksgiving meal? I know I don’t, I feel I would be afraid to gather all of the costs. I am sure I would be unpleasantly surprised. Each year, I start gathering ingredients early, especially those that are canned and difficult to locate,...
