In the Black: June 2024
Your Estimated Tax Era
I know it feels like we just finished 2023 taxes, but here we are already talking about 2024. For those folks that work for themselves, our second quarterly tax payment is coming due soon (6/15). By now you’ve already received an email checking in about any changes to your 2024 financials. If you haven’t written us back - please do that NOW!!!
We make a plan at tax time for the next year, but if the last few years have taught me anything it’s that THINGS CHANGE. So in that spirit, I want to make sure you are sending in the right amount quarterly and the only way to do that is to revisit the estimates. Now some of you may not want to pay estimates or not want to work on updating them, if that’s you there are some things you should know.
A) Estimated taxes are not optional if you‘ll owe at the end of the year, so if you skip them expect to pay interest (8%) and fees.
B) If you overpay, you’ll get it refunded at tax time (but why give the government a loan???).
C) If you underpay, you may be subject to interest and fees. But more largely, it makes tax time in the spring unnecessarily stressful.
D) If you are an SCorp or a Partnership and we’ve talked about the AMAZING tax advantages of the PTE tax (you will have gotten an email on this if this applies), and you MISS the 6/15 deadline - you’ve missed the boat. There is zero flexibility.
We are working hard over here, but do know we figure estimates based on when we get replies - so if you send us your much later than Monday - we’ll do our best, but there’s no guarantee we’ll get to you in time. Moral of the story: send us your updates now 🙂.
Trump’s new tax woes
Not sure if you clocked this last month, but being the tax and political nerd that I am- I’ve been obsessed with the detail of this turn of events. You may remember in 2016, Trump was the first candidate to not release his tax returns. He explained that he was under audit from the IRS. Now, some details have come out on that audit that may result in an IRS bill of over $100 million.
So what’s the deal? In 2008, Trump started building a fancy retail and apartment tower in Chicago. Like many building projects, they came in way over costs. And then 2009 happens and the market falls apart. No one wants fancy condos. On his 2008 tax returns, Trump writes off the whole thing as worthless and takes $697 million in deductions. A few things to note here, he still owns the tower, so while it’s likely not worth the money he put in - it’s not worthless. Also, it’s borrowed money he’s used to build this. The IRS doesn’t challenge this in time and so this ship has sailed. (This makes me glad they upped the staffing at the IRS in the last few years).
But Trump isn't done, in 2010 he moved the Chicago property to another company that also holds all his entertainment (Apprentice) earnings. Then, he starts double dipping. He declared the property worthless BUT from 2011-2020 he wrote off another $169 million on the property to offset the Apprentice earnings. This is where the IRS has nailed him and the $100 million tax bill comes in.
Now audits take forever and you’ll be sure he’ll fight this BUTTTTTT I gotta say, I love it when cheaters get caught. The nerds will get you every time.
Liz is All Liz’s?????
Did you know that there are actually THREE Liz’s? Eveliz and Elizabeth W go by their full names at work to make it less confusing. Here’s a throwback shot to us all in the office in the before times together - you can imagine how confusing it was!!!!
