Harry C Hearn, Inc.

02/01/2024

Looks like the Fed is not yet ready to lower interest rates, though it does look like they will drop later this year. https://www.cnbc.com/2024/01/31/fed-chief-jerome-powell-says-a-march-rate-cut-is-not-likely.html

What does it mean for you?

Higher borrowing costs will stay high a bit longer, which will affect loans and mortgages. A little patience might save you money if you are looking to purchase a new car or house or make expansions to your business this year.

01/31/2024

Should you get one of the new business accounts the IRS is now touting?

Short answer: Yes, if you qualify (of course).
Only certain entities are eligible. But it’s a useful, new tool for your business.

The new IRS business accounts are now available to sole proprietors (as of Oct 2023), and S corps and partnerships (as of Dec 2023). These accounts allow owners, partners, and shareholders to view account information, transcripts, notices, and also make payments, among other things.

For ease of information sharing, you can give your accountant access to the account as well.

01/30/2024

Tax season is officially underway... as of yesterday.

And even though Congress is still making decisions that could affect your filing this year, holding out until they do could mean you're waiting too much and then have to rush to get things together later. So, why wait?

We suggest jumping on things, even if changes need to be made after Congress comes to a decision about recent tax legislation. According to Commissioner Werfel, the IRS will update you if you get a bigger refund or need to amend your return.

And if we're doing the filing for you, we'll be there to help you walk it through.

Happy filing.

01/29/2024

A lot of people underestimate the tax deductions available for medical expenses.

Over 70% miss out on claiming qualified expenses exceeding 7.5% of their adjusted gross income.

Did you know that doctor visits, prescriptions, and even certain surgeries can be deductions?

With the increased standard deduction in 2024, itemizing might be more beneficial than ever.

We're here if you want to get into the nitty gritty of tax deductible medical expenses. Feel free to drop questions below.

01/27/2024

5 Customer Loyalty Strategies for Columbia Small Businesses

Let's explore some customer loyalty programs tailored you can implement to create deeper connections and offer real value for your clients.

01/26/2024

The House of Representatives have been discussing a bill that could bring low income families some much needed tax breaks. It's called the Tax Relief for American Families and Workers Act and it proposes:

1. An increase to the maximum refundable portion of the Child Tax Credit annually to adjust for inflation: $1,800 per child in 2023, $1,900 per child in 2024, $2,000 per child in 2025. This would mean more money in your pocket and no requirement to pay anything back.

2. Additional support for affordable housing by increasing the availability of safe and affordable housing options for low-income families. The bill will raise the low-income housing tax credit (LIHTC) ceiling by 12.5% for 2023-2025. This lowers the bond-financing threshold for LIHTC projects, making it easier to develop affordable housing units.

3. Expands the EITC for workers without qualifying children, which provides additional tax relief to low-income working individuals.

This bill is still on its way through Congress, so things could change. But the progress is promising, and it's definitely worth keeping an eye on. We'll keep you updated.

01/25/2024

How do you find and keep employees?

Figure out what matters most to them.

According to the most recent Gallup polls on the state of the global workplace...
- Employee stress is up (for more than 40% of employees)
- 51% of currently employed workers are watching for or actively seeking a new job (costs the global economy $8.8 trillion dollars)
- Around 6 in 10 employees are quietly quitting

And according to the same polls about what matters in the workplace for an employee...
- When a manager or boss actively engages with the employees, they are 3.8x more likely to have a reduction in stress
- The top three things that quiet quitters are looking for in a workplace are engagment/culture, pay, and well-being.
- Employees want more recognition, opportunities to learn, fair treatment, clearer goals, and better managers.

If you're an employee, how does this resonate with your own experience in the workplace?

If you're a business owner, have you considered how to shift your workplace structure to make happier employees? If so, what are you doing to implement these changes?

https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx -506891

01/24/2024

The Tax Relief for American Families and Workers Act of 2024, a $78 billion piece of tax legislation currently in the House, will bring support to businesses like yours, including:

1. Being able to deduct the full cost of U.S.-based research and development (R&D) investments right away, instead of spreading it over five years.

2. Increased flexibility for businesses borrowing at higher interest rates to meet payroll obligations and expand operations.

3. Ability to fully and immediately deduct investments in machinery, equipment, and vehicles.

4. A raised limit for small businesses to quickly write off investments up to $1.29 million (up from the previous $1 million cap set in 2017).

5. Simplified reporting requirements for businesses that use subcontracted labor.
The reporting threshold will be $1,000, increased from $600, and it will be adjusted for inflation. (This will be the first update to the threshold since the 1950s.)

One tax break that will come to an end with this legislation is the Employee Retention Credit. Until it passes, though, ERC applications are still being accepted -- only submit one if your claim is valid.

We'll keep you up to date with how this develops, but if you have questions, drop a comment below.

01/23/2024

If this is you, you're certainly not the first person we've heard that sentiment from. A lot of people don't know...
- How taxes work
- How to file them
- How to reduce what they owe
- How to claim deductions and credits
- How to avoid penalties.. we could go on.

The point is, don't be afraid to ask for help with your taxes.

We're not here to judge you. We're here to help you get compliant and to do it in the most savvy way possible.

01/22/2024

With financial apps, you can now easily navigate your financial world, tracking your purchases and categorizing them. But did you know these apps can also give you personalized insights into your spending habits?

For example, an app like Mint might tell you that you're spending more than usual on eating out, or the YNAB (You Need a Budget) app might tell you you're on track to reach your savings goal for the month.

These kinds of insights can be incredibly useful for making better financial decisions. Have you started taking advantage of these financial tools to help you improve your financial situation?

Which ones do you like to use and what feature do you especially like about the app you use?

01/20/2024

Email Inbox Management for Columbia Business Owners

Better email inbox management can improve your life as a business owner. Here’s a review of the latest hacks to try out.

01/19/2024

We all have assumptions. It's what we do with them that matters. That includes your assumptions about taxes and finances.

Any of these assumptions floating through your mind?
"Retirement planning can wait, right?"
"All debt is bad."
"Tax deductions and credits aren't worth the effort."
"Investing is for the rich."
"Saving is enough. No need to invest."

You'll want to dispel some of these assumptions and get a healthier perspective on them. Because it could really make the difference in your life.

So, educate yourself -- change the narrative you have around money, taxes, and investing. Capitalize on the financial tools and software out there to help you succeed. And get support from a professional who can help you see things more clearly.