by Leif Jensen | Mar 4, 2024 | Rant |
I was meeting a client at their location, and I asked why they were renting instead of owning their own location. Especially with their rent costs. In the past they had owned their own buildings, but now where they were located, single small businesses were no longer...
by Leif Jensen | Feb 28, 2024 | Running a Business |
I started working with a new client and she stated in a moment of aggravation that when you start a business there are no manuals available to explain things to new entrepreneurs. Information is all over the internet, some great, some good, some bad and some very bad…...
by Leif Jensen | Feb 26, 2024 | Rant |
In the past I have been a member of a number of groups. I had spent a tremendous amount of time and never really got a lot of referrals. I thought of putting my own group together, one that would only, be businesses that focused on business owners. It was to include...
by Leif Jensen | Feb 21, 2024 | Rant |
I was talking to a gentleman, who lives north and travels over an hour to get to work each day –with the obvious return trip. I have a couple of clients looking for his skill set – either client would halve his travels. I offered to make an introduction. I was...
by Leif Jensen | Feb 19, 2024 | Tax Court |
I thought this case was amusing. A cat rescue group doesn’t qualify as a tax-exempt agricultural organization, per the IRS in a private ruling. The group was formed to house and rescue cats that come from an animal shelter. It also runs a cat café, in which it charges...
by Leif Jensen | Feb 14, 2024 | Tax Court |
Recovering attorney fees after beating the IRS in court isn’t the easiest of tasks. Taxpayers can recover their legal costs if they substantially prevail on the issues, unless the government shows that its litigation position was substantially justified. They also...
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...
