IRS Trouble Solvers - September 2024

Take a look at our September newsletter!

THE POWER OF SOUTHERN COURTESY Mama Said ‘Always Be Nice and Sweet’

Mama said that you should always be nice and sweet.

This month, we’re celebrating National Courtesy Month, a perfect reminder to be “nice and sweet,” just like Mama always said. Growing up in the South, that Southern heritage teaches you that Mama’s wisdom is non-negotiable. To Mama, being nice and sweet was all about showing respect. For me, it means that even when you don’t agree with someone’s opinion or perspective, you can still be kind and courteous. That’s what being “nice and sweet” is all about — active with respect and kindness, no matter the differences. Life is hard, and business is messy. I believe business can get chaotic because, at the end of the day, people are involved — and people make mistakes. It’s simply part of being human. Even the IRS isn’t immune to errors! But despite those inevitable slip-ups, being “nice and sweet” reminds us that we can always choose kindness and courtesy when dealing with others. Mistakes in life aren’t a question of if, but when. That’s why it’s so important to practice grace — giving others something they might not necessarily deserve. Life and business can get stressful and hectic, but being kind, courteous, and “nice and sweet” doesn’t cost a thing. All it takes is having the right attitude and a willingness to approach situations with empathy and understanding. I was taught about simple ways to make sure others feel valued that cost you and your client nothing, like being prompt, kind, and courteous, and approaching situations with grace. The law of reciprocity teaches us that what you put out into the world comes back to you. I truly believe in that. Kindness and courtesy go hand in hand with this idea and reflect the importance of Southern hospitality and heritage — just like Mama always said, “Be nice and sweet.” That’s what it’s all about. Having a kind attitude will repay you in more ways than you can imagine. It’s a simple yet powerful principle to live by that fosters connection, spreads positivity, and often returns to you when you least expect it. Happy National Courtesy Month! -Ben Golden

Kindness begins with how we treat ourselves. When we lead with self-compassion, it naturally extends to how we interact with others. Being courteous is a powerful way to spread positivity — small gestures of respect and kindness can brighten someone’s day. Studies show that when we act in service to others, we feel happier and more fulfilled. By leading with compassion and following with kindness, we create a ripple effect that benefits everyone around us. Simple acts of courtesy remind us that we’re all connected and have the power to make someone’s day a bit brighter.

SEPT 2024

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TAKE ACT YEAR-END TA Year-end tax planning isn’t just about making last-minute moves; it’s about setting yourself up for financial success in the coming year. Here are some key strategies to consider before Dec. 31. Maximize Retirement Contributions One of the most effective ways to reduce your taxable income is by contributing to retirement accounts like IRAs and 401(k)s. For 2024, the contribution limit for a 401(k) is $22,500, with an additional $7,500 catch-up contribution allowed if you’re over age 50. Traditional IRA contributions can also reduce your taxable income, while Roth IRA contributions offer tax-free withdrawals in retirement.

Baskets of Fun

Timing Income and Deductions Consider accelerating certain deductions or deferring income to optimize your tax

Most of the apples you find in stores are ripening now, making September prime apple-picking season! When green apples begin to turn yellow and red apples brighten in color, they are ready to be gathered up. If you are looking for a great excuse to get out in nature with your family or just hankering for some fresh produce, then apple picking is the thing for you. Orchards all over the country have a you-pick season so you can bring home your own fresh apples. Here is how to get in on the apple-picking trend right now! How do you like them apples? If you and your kids aren’t paying to pick apples, and you don’t have the owner’s permission, that’s stealing. If you (or someone else) pay your kids to pick apples, that is child labor, which is, sadly, also illegal. Kidding aside, for the most part, to pick apples at an orchard, you must pay for the privilege. Orchards all across the country have different varieties of apples ripening all the time. Whether you’re in Maine, Michigan, California, or somewhere in between, you are likely ready to go on an apple-picking frenzy with family! Enjoy the fruits of your labor. After a long day of picking apples and making memories, you need a place to put them. Sure, if you want to dig into your apples right away, a bowl on the counter is fine. But if you want to store these apples for safekeeping (or making pie, apple crisp, apple sauce, or myriad other things), keep them somewhere nice and cool, like a refrigerator. If you keep your apples cool, they’ll stay good for weeks, ensuring you can enjoy the fruits of your labor all month! APPLE PICKING WITH THE WHOLE FAMILY

position. For example, if you’re able to prepay your January mortgage payment in December,

Tasty Turkey Meatloaf

INGREDIENTS

1 lb ground turkey

2 tbsp ketchup

1 onion, diced

2 tbsp Worcestershire sauce

2 cloves garlic, minced

2 eggs

1/2 cup bread crumbs

2 tbsp chopped fresh parsley

1/2 cup grated Parmesan cheese

Salt and pepper, to taste

DIRECTIONS

1. Preheat oven to 375 F and line a baking dish with parchment paper. 2. In a large bowl, combine turkey, onion, garlic, bread crumbs, Parmesan cheese, ketchup, Worcestershire sauce, eggs, parsley, salt, and pepper. 3. Form the mixture into a loaf shape and place it in the baking dish. 4. Bake for 45 minutes or until the internal temperature reaches 165 F. 5. Let the meatloaf rest for 10 minutes before slicing.

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TION NOW TO MAXIMIZE YOUR SAVINGS AX PLANNING STRATEGIES

WIN OF THE MONTH: A Client Success Story With an 88% Reduction Review Business Expenses For business owners, now is the time to review your expenses and determine whether any purchases should be made before year-end. This could include buying new equipment, which might qualify for Section 179 deductions or bonus depreciation, effectively lowering your taxable income. Additionally, review your income and expenses to ensure you’re taking full advantage of the Qualified Business Income Deduction (QBID). Maximize Health Savings Accounts (HSAs) If you’re enrolled in a high-deductible health plan, contributing to an HSA can provide triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. For 2024, the contribution limits are $3,850 for individuals and $7,750 for families, with an additional $1,000 catch-up contribution for those over age 55. By taking action now, you can reduce your tax liability and position yourself for a successful 2024. If you need assistance implementing these strategies, call our sister company, Golden Tax Relief, at 844-229-8936 for help today. Don’t wait until the last minute — start your year-end planning today!

you can deduct the interest in the current year. Charitable donations are another area where timing can make a difference. By making donations before the year ends, you can increase your deductions for the current tax year. On the income side, if you anticipate being in a lower tax bracket next year, consider deferring a year-end bonus or other income to January. Charitable Giving Strategies Those looking to make a substantial impact should consider establishing a donor-advised fund (DAF). A DAF allows you to make a large contribution now, take the immediate tax deduction, and distribute the funds to charities over time. If you’re over 70½, you can make a Qualified Charitable Distribution (QCD) directly from your IRA, which can satisfy your required minimum distribution (RMD) while also providing a tax-efficient way to give. Harvest Tax Losses Tax loss harvesting involves selling investments that have decreased in value to offset gains from other investments. This strategy can help reduce your overall capital gains tax. Just be mindful of the wash-sale rule, which disallows the loss if you repurchase the same or substantially identical security within 30 days before or after the sale.

A 68-year-old insurance agent faced significant

CASE SNAPSHOT Client: Individual Taxpayer Type of IRS Issue: Personal Income Tax Tax Years in Question: 2012–2020 IRS Claimed Liability: $30,999.93 Savings: $27,362.93 (88%)

income tax liabilities for the years 2012–2020, totaling $30,999.93. Despite initial challenges, including the need to appeal the first Offer in Compromise (OIC) decision, we successfully secured an 88% reduction in the tax debt, saving $27,362.93.

The financial situation was complicated by the client’s wife’s dependence on Social Security disability and their home ownership, which initially seemed to disqualify them from an OIC. However, we were able to negotiate a reduced valuation of the home due to substantial repair needs, including foundation issues stemming from major plumbing problems, which ultimately helped us achieve a favorable resolution.

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1 The Power of Southern Courtesy 2 The Joy of Apple Picking INSIDE THIS ISSUE

Maximize Your Savings With These Year‑End Strategies

3 Tasty Turkey Meatloaf

Win of the Month

4 The App Every Adult Needs

REVOLUTIONIZING ADULTHOOD THE REALWORLD APP CAN BE YOUR ULTIMATE COMPANION

Designing Demonstrations Realworld provides resources that make it easier to understand major “adulting” topics, like balancing a budget, filling out employment paperwork, setting up a credit card, etc. When setting out to create the app, Bellaire interviewed over 1,000 people — from recent college graduates to business owners — to understand the

The software and smart devices kids have access to now are light-years ahead of what many of us had growing up. Nowadays, if you have a pressing question, you can ask Siri or Alexa, or look it up yourself on any number

of connected devices. But even with modern conveniences, we still missed out on many practical lessons while growing up, whether we have a college education or not. That is where the Realworld app, created by Genevieve Bellaire, comes in handy: It’s the tool we wish we had growing up because it answers many questions young adults have.

problem areas and then identify and create “playbooks” for dealing with them. Playbooks contain step-by-step lessons that guide users through their topic problem. The app now has nearly 100 instructional playbooks to prepare its users for many tasks.

Genevieve’s Reprieve Despite her impressive education, Bellaire

Community of Peers Learning is easiest when you have other people to bounce ideas off of. The users, along with the team of researchers, writers, designers, and educators working on the app, all benefit from its lessons. The app has grown exponentially, amassing over 1.7 million users as of 2023. More people than ever have access to the resources they need to face adulthood head-on. The Realworld: Simplify Adulthood app is available now for free on Apple’s App Store.

experienced challenges managing her finances, health care, and living arrangements in adulthood. Although well-studied, she was not well-prepared for life — and she wasn’t alone. When she talked to friends about these difficulties, they could all relate. Everyone felt they did not know enough about filing taxes, managing a 401(k), building credit, how insurance works, or many other critical facets of adult life. This is what inspired Bellaire to create Realworld, an app aimed at simplifying adulthood.

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