DDO Advisory Services, LLC

06/26/2020

So excited to be opening DDO Advisory Services’ office in Rhinebeck this July! Getting print and web in order, and have already set up COVID meeting protocol, where we sit 15 feet away from each other and yell. This is how I ran meetings before the outbreak. Stop in for a consult or for some coffee. Special thanks to Marla at Main Printing of Poughkeepsie for the exceptional print job! . 6369 Mill Street, Ste. 209 (upstairs at the M&T Building). and

04/15/2020

Here are some thoughts and guidelines on the CARES Act, including tax deadlines, retirement plan withdrawals/loans, enhanced & expedited unemployment insurance, and some SBA loan programs for small businesses (Paycheck Protection Program, and the Economic Injury Disaster Loan). DM/call/text with any questions - be well and stay healthy!

COVID-19 & the CARES Act These are extremely challenging economic times for families, salaried employees, freelancers, and small business owners. Here is a summary of some resources and recently passed legislation like the CARES Act and some Small Business Administration programs. By no means is thi...

04/02/2020

These are extremely challenging economic times for families, salaried employees, freelancers, and small business owners. Here is a summary of some resources and recently passed legislation like the CARES Act and some Small Business Administration programs. By no means is this an exhaustive explanation.

Call, DM, or email me if you want to discuss or have any questions about your specific circumstances. For any small business owners considering the SBA programs listed below, consider working with a tax advisor to ensure that your paperwork is properly prepared. If you need a tax advisor, please let me know.

Be well, stay healthy, and stay the hell away from each other!

GENERAL DEADLINES

INCOME TAX FILING + PAYMENT DEADLINES: The federal income tax deadline for filing 2019 tax returns has changed from April 15th to July 15, 2020.

2019 IRA CONTRIBUTION DEADLINE: The deadline for making 2019 IRA and HSA contributions has also been moved to July 15, 2020.

STUDENT LOAN PAYMENTS: The CARES Act suspends payments on federal student loans for 6 months. The act waives any interest on the loans for 6 months as well.

RETIREMENT PLAN WITHDRAWAL FLEXIBILITY: If you need to access retirement savings during this time, the CARES Act provides additional flexibility and reduces/waives some penalties.

IRA + 401(k)/403(b) WITHDRAWALS: Investors of any age can take as much as $100,000 from retirement accounts this year without paying the pre-59 ½ early withdrawal penalty. You have three years to replenish the money into your account, and if you can’t (replenish), the taxes can be paid over three years.

401(k) LOANS: The limit on 401(k) loans has been increased this year from $50,000 to $100,000. The payment dates for any loans due the rest of 2020 will be extended for a year.

IRA REQUIRED MINIMUM DISTRIBUTIONS (RMDs): The CARES Act suspends IRA RMDs for 2020. This is beneficial to Seniors who may not need to spend the money (because 2020 distributions are based on the 12/31/19 value of IRA account, when the market was much higher than it is now). This one-year waiver will allow their investments to remain in their IRAs longer, and prevent them from selling assets at a lower price.

ENHANCED + EXPEDITED UNEMPLOYMENT CLAIMS

The CARES Act also expands unemployment insurance. Under the provisions in the bill, more people will qualify for benefits and the amounts of weekly benefits will be increased.

Among other things, the Act provides an additional $600 weekly benefit (paid on top of the regular unemployment compensation to which the worker is entitled). There is a waiver of any application-waiting period, so that workers can apply and receive benefits immediately, as well as an extension of the benefits period.

*** For free-lancers, self-employed individuals, consultants, and other “gig-economy” workers: the Act provides unemployment coverage to workers who otherwise would not be eligible for unemployment benefits, or who otherwise would have exhausted their unemployment benefits. ***

Start the application process here:

https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx?location=NY&keyword=&persist=&ajax=0

RELIEF FOR SMALL BUSINESSES

There are a number of programs through the Small Business Administration that will provide economic and staffing relief for small businesses. Far too many to explain here, but here are two:

PAYCHECK PROTECTION PROGRAM

For small businesses, self-employed, and independent contractors: Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount. Loan payments will be deferred for six months.

*** If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination. ***

ECONOMIC INJURY DISASTER LOAN AND LOAN ADVANCE

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide temporary relief of lost revenue. The $10,000 loan advance will not have to be repaid.

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

CareerOneStop

02/01/2019

POSSIBLE 20% TAX DEDUCTION FOR SMALL BUSINESS OWNERS AND SELF-EMPLOYED INDIVIDUALS

There are lots of if/then definitions, thresholds, acronyms, and exceptions below. Speak to your tax advisor.

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If you own a small business or are self-employed, work with your accountant to see whether you qualify for a 20% deduction/exemption of “qualified business income”. [20 PERCENT].

Qualifying depends largely on two factors:

1) The type of corporate entity you are using.
2) The kind of business or service you provide

TYPE OF CORPORATE ENTITY

The income tax deduction applies to certain “pass through corporate entities”, including (among others):

* Sole Proprietorships (Schedule C filers)
* S Corporations
* Partnerships
* Some Schedule E Real Estate Investors
* Trusts/Estates w/ an interest in Pass Through Entities
* Real Estate Investment Trusts (REITS)

It does not apply to C Corporations.

THE KIND OF BUSINESS OR SERVICE YOU PROVIDE

This is where things got confusing earlier this year when the new tax code went into effect.

The law states that to qualify for this 20% deduction, you must perform a Qualified Trade or Business (QTB). A “QTB” is anything OTHER THAN a Specified Service Trade or Business (SSTB), such as:

* Health
* Law
* Accounting
* Actuarial Science
* Performing Arts
* Consulting
* Athletics
* Financial Services
* Brokerage Services
* Investing & Investment Management

ARCHITECTS and ENGINEERS are NOT excluded professions.

That list encompasses a lot of excluded professions (typically small businesses), which may cause you to proclaim “Oh, come ON, man!! ☹”

THE GOOD NEWS: If your profession is on the excluded list above, you might still qualify for this 20% deduction, IF your taxable income (NOT Gross Income, but TAXABLE income) is below the following threshold amounts:

$157,500 on a single return
$315,000 on a jointly-filed return

This is a win-win for anyone who:

* Performs a profession on the excluded list above, AND shows taxable income BELOW the threshold amounts.

* Shows taxable income above those threshold amounts (because you are crushing it at work 👍).

If you are above the threshold amounts, and want to drive your taxable income down, please contact me.

If you need an introduction to a qualified tax advisor who understands the new law, please contact me, and I will introduce you.

10/22/2018

Many thanks to NY Metro Parents for talking to me about 401(k)s, IRAs, and other retirement savings vehicles.

Whether you’re just starting your career, switching jobs, or you’ve been working for three decades, making sure you’re saving for retirement is one of the most important things you can do to set yourself up for the future. And the sooner you start saving, the better off you’ll be financially...

06/07/2018

Good news on the credit protection front. Newly signed law enables consumers to freeze (and thaw) their credit profiles at all 3 agencies for free. When you freeze your credit, no one can fraudulently open an account in your name. It's the ultimate protection. You can also put a lock on your children's profile (even if they don't currently have one):

Credit experts often recommend a freeze as a way to protect personal information from fraud and identity theft.

03/22/2018

So very excited to be teaching the Financial Planning and Retirement course this Fall at Bard's Lifetime Learning Institute. The course will cover all aspects of saving for and enjoying your retirement. There are 7 sessions, which will meet on Friday afternoons at Bard from 1:40 - 2:50 p.m. [9/14, 9/21, 9/28, 10/5, 10/19, 10/26, 11/9]. Courses are free, but require membership in the Lifetime Learning Institute, the cost of which ranges from $75/semester (new members) to $115/year. Membership details: https://www.bardlli.com/. If this is something that interests you, please DM me or respond to the post, and I'll reach out to you directly when registration opens. If Friday afternoons are a challenge, but you're still interested, please let me know, as I may host a much briefer (one session) meeting at Starr Library later this year.

03/19/2018

Here's the third article from NYMetroParents.com regarding how to create a budget that works for you: https://www.nymetroparents.com/article/expert-tips-to-create-a-budget

Whether you're saving money to have a child, buy a house, pay for your children's college educations, or just want to stop living paycheck to paycheck, a budget is necessary to achieve these financial goals. Three experts share their tips to creating a budget that works in four easy steps.