Roberts CPA - July 2024

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(502) 426-0000 ∙ www.Roberts.cpa July 2024 From Revolution to Tradition

HONORING AMERICA’S INDEPENDENCE

Fireworks, barbecues, and pool parties might dominate Fourth of July festivities, but the significance of this day extends far beyond just fun and games. While all those events are exciting for many, the Fourth of July is when we come together to celebrate the freedom and independence that define our nation. It reminds us of the countless sacrifices to ensure we can live in a land of liberty and endless experiences. Today, let us take the time to feel incredibly blessed to be free, reflecting on the advantages of living in this beautiful country. Now, I would like to dive into some of the history of the Fourth of July — also known as Independence Day — which became a federal holiday in the U.S. in 1941. However, the tradition of celebrating Independence Day dates back to the 18th century and the American Revolution. On July 2, 1776, the Continental Congress voted in favor of independence, and two days later, delegates from the 13 colonies adopted the Declaration of Independence, a historic document drafted by Thomas Jefferson. The tradition of patriotic celebration grew even more widespread after the War of 1812 when the United States faced Great Britain again. In 1870, the U.S. Congress declared July 4 a federal holiday for everyone.

“Being American means cherishing freedom in all forms: diversity, opportunity, relationships, religious liberty, and economic potential.”

Since the late 19th century, the Fourth of July, falling in mid-summer, has become a significant occasion for leisure activities and family gatherings. The American flag is the most common holiday symbol, and “The Star-Spangled Banner” is the United States' national anthem. Living in this country is truly a blessing I never take for granted. My patriotism runs deep, and I feel fortunate to have lived in a land of freedom and opportunity. This makes our nation exceptional and is why we feel so blessed to call it our home. Now that my kids are all grown up and out of the house, my wife and I are empty nesters. The times of traditional community get-togethers such as pool parties, barbecues, and fireworks with our kids have come to a close. We cherish those memories, but my wife and I still value the importance of living in this country and the freedom it provides us daily. Being American means cherishing freedom in all forms: diversity, opportunity, relationships, religious liberty, and economic potential. It is about supporting each other while creating your path. Displays of patriotism are more prominent in the South than in other parts, so our celebrations are usually more exuberant. My gratitude extends

mainly to the troops who ensure our secure and free future. The South’s proud patriotic spirit makes the Fourth of July not just a holiday but a heartfelt tribute to the joys of living in a free nation. It is safe to say that I feel proud to be an American on this day! —Kevin Roberts

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FROM FINGERS TO FORKS The Evolution of Dining Etiquette

Have you ever feasted on chicken wings, your hands stained with barbecue sauce, and thought, Why don’t we just eat everything like this? As it turns out, we did — people only started eating their meals with cutlery fairly recently. Many cultures around the world still eat primarily with their hands. So, why are placemats adorned with forks, spoons, and knives commonplace today? To find out, we have to get our hands dirty — because the history of cutlery, much like the history of civilization, is complex, nuanced, and full of gossip. Big Spoon Little Spoon Perhaps unsurprisingly, spoons are the oldest examples of cutlery people used consistently for millennia. After all, what good is a fine pot of communal soup without a spoon to eat it with? Likewise, knives have always been used to cut up meat and prepare our meals, but only the advent of individualized meals rather than buffet-style brought along the advent of dinner knives. Forks, however, are an altogether newer invention. Although large serving forks can be traced as far back as Ancient Egypt, the individual, smaller version has its roots in the Byzantine Empire. Around one thousand years ago, the Byzantine noblewoman Theodora Doukaina

brought a golden fork to her wedding feast in Venice. It became quite controversial among the Italians, with many shunning the novel tool as posh and overly decadent. However, as royals began to intermarry, the fork gradually caught on. Royals increasingly ate with cutlery and became weary of dirtying their hands with their food. By the 1800s, cutlery was widespread in the Western world, and today, most people and establishments serve meals with silverware! Antiquity — Making a Comeback There’s a reason movie theater popcorn doesn't come with a popcorn spoon and your favorite burger joint doesn’t offer sporks; some food is meant to be eaten with your hands. While most sit-down meals will always be the domain of the cutlery-wielding elite, finger food isn’t going anywhere anytime soon, and if history has any say, it never will.

THE POWER OF TAX GAIN-LOSS HARVESTING Navigating the complexities of taxation requires strategic planning and informed decision-making. Effective tax strategies are essential for minimizing liabilities and financial health. Tax gain-loss harvesting is a strategic approach to investment tax planning or management. This method leverages a portfolio's losses to offset overall and short-term capital gains. Long-term gains earned from assets held for more than one year are typically taxed at lower rates than short-term gains, which come from assets owned for less than one year and are taxed at ordinary income rates. Consider this example: A single investor with an annual income of $100,000 realizes $10,000 in long-term capital gains. Given the typical tax rate for long-term capital gains, TURNING LOSSES INTO GAINS

the tax liability on these gains would be $1,500 without offsetting losses. However, if the investor also holds underperforming investments that generate $10,000 in long- term capital losses, selling these investments would allow the losses to offset the gains fully. As a result, the investor's net capital gain would be zero, eliminating the tax liability, By offsetting capital gains with corresponding losses within a portfolio, investors can significantly reduce or even eliminate their tax burdens. Through careful application of tax gain-loss harvesting, investors can enhance their after-tax returns, making it a valuable tool in effective investment management.

capital gains, reducing the investor's tax burden. The Internal Revenue Service (IRS) advises that short-term and long-term capital losses must first be used to offset capital gains of the same type. Essentially, long-term losses must offset long-term gains before they can be applied to short-term profits. This is a crucial strategy for savvy investors looking to optimize their tax liabilities and maximize their investment returns. To understand this concept better, it is essential to differentiate between long-term

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This recipe is packed with protein-rich quinoa and a colorful array of vegetables. It’s ideal for a healthy lunch or a quick dinner! Quinoa Veggie Bowl

INGREDIENTS

Future Proof Your Finances Tax Planning for Businesses 101 Staying on top of your to-do list essentially means you are prepared, but unlike tax preparation, which focuses on the past year’s finances, strategic tax planning involves a forward-looking approach. It considers your financial trajectory over the next five, 10, or 20 years rather than just the past years. Effective planning can minimize your tax burden while positioning some of your savings to generate tax-free income. For example, if you had an additional $35,000 in annual income taxed at a combined federal and state rate of 30%, you would net $24,500 after taxes. You could mitigate this $10,500 tax impact through strategic tax planning by investing in options like a laddered bond portfolio or a low- cost life policy offering tax-free distributions. Tax planning enables you to utilize various exemptions, deductions, credits, and benefits to legally and ethically reduce your tax liability. This approach frees up more funds for other financial goals, such as advertising campaigns, capital investments, employee bonuses, or personal objectives like paying off a mortgage, saving for retirement, or vacationing. Additionally, it provides an early snapshot of your finances and taxes at the beginning of the fiscal year, avoiding last-minute rushes. Tax planning can be like a strategic sport, where preparation, planning, practice, and timely adjustments are crucial to winning the game. Proactive tax planning, with its forward-looking approach, ensures better financial outcomes. For business owners, understanding and anticipating your tax obligations are crucial. Business taxes are inherently complex; laws frequently change over time and vary by region, often applying selectively to specific scenarios and business types. Tax planning helps you accurately estimate your taxes, avoid late filing and payment penalties, and uncover potential deductions and credits. Hiring a trusted financial advisor with experience in tax strategies can help you navigate these complexities. We are here to help, so call Roberts CPA Group for all your questions and concerns.

• 1 cup diced mushrooms • 1 tsp dried oregano • Salt and pepper, to taste • 2 cups cooked quinoa

• 2 tbsp olive oil • 1 red bell pepper, diced • 1 yellow bell pepper, diced • 1 cup diced zucchini

DIRECTIONS

1. Heat olive oil in a large skillet over medium heat. 2. Add bell peppers, zucchini, and mushrooms and cook until softened, about 5 minutes. 3. Add oregano, salt, and pepper and stir to combine.

4. Add the cooked quinoa and mix thoroughly. 5. Cook for an additional 5 minutes, then serve.

SUDOKU

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INSIDE THIS ISSUE 1 Celebrating Freedom and Patriotism on the Fourth of July 2 The Fascinating History of Cutlery Using Losses to Offset Gains and Save on Taxes 3 Investing in Your Financial Success With Tax Strategies Quinoa Veggie Bowl 4 An Inside Look at Matthew Perry’s Living Trust

TRAGIC LOSS AND LEGACIES THE LASTING IMPACT OF MATTHEW PERRY’S ESTATE

An estate plan is crucial for several reasons: It ensures your assets are distributed according to your wishes after you pass away and minimizes potential disputes among family members. You can also designate guardians for minor children to ensure they are cared for. Matthew Perry, well-known for his role in “Friends,” proved to be one step ahead when he set up a living trust in 2009. The 54-year-old Hollywood star was found unresponsive after drowning in his Los Angeles, California, home on Oct. 28, 2023. According to NPR, “His drowning, coronary artery disease, and the effects of buprenorphine — a medication used to treat opioid use disorder — were noted as factors that contributed to his death, but were not the primary cause, according to the autopsy results. The death was ruled an accident.” According to a recent filing, most of Perry's belongings will be placed in the Alvy Singer Living Trust, named after Woody Allen's character in “Annie Hall.”

His father, John Perry, and his mother, Suzanne Morrison, are the trust beneficiaries. His half-sister, Caitlin Morrison, and ex-girlfriend, Rachel Dunn, were also listed. Perry also indicated that any children he had would not be entitled to access his estate. (He never had children.) According to FindLaw, “The Alvy Singer Living Trust trustees are Lisa Ferguson and Robin Ruzan. Ferguson was Perry’s business manager, and Ruzan was a friend and executive producer. Perry’s estate is valued at over $120 million.” The passing of Matthew Perry marks the end of an era as fans mourn the loss of a talented actor whose work left a significant impact on the entertainment industry. However, beyond his artistic legacy, Perry’s death highlights the importance and benefits of estate planning, the significance of living trusts, and the blessing of orderly distribution of assets. His family is the fortunate recipient of his generous gift.

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