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It’s time to be thinking ahead…
By the time you read this newsletter we will be down to 60 days remaining in 2022. With time off for holidays, we may only have 5 or 6 weeks for planning to limit taxes for this year. And do not forget, many financial services businesses will close between Christmas and New Year’s Day.
It is time to take action.
If you have experienced significant changes in financial affairs this year, positive or negative, we should talk briefly about the tax effects.
If you expect a significant increase in income, there may be opportunities to reduce the tax implications through additional retirement plan contributions, investing in business assets (placed in service before year end) or the intentional sale of assets in a loss position (tax loss harvesting.)
This is also a good time to revisit the “bunching” of Charitable donations. We can help.
If you expect significantly less taxable income this year compared to last, this might be a great time to convert Traditional IRAs to Roth accounts.
Remember, in both cases, to keep in mind the effects on required estimated tax payments and plan to manage your marginal tax rate (See your 2021 Client Letter and Federal Tax Summary for reminders.)
New this year at NCPAs…
You have read that inflation and labor shortages have affected our company, like so many others across America. In order to maintain control of costs and yet keep up with demand we have made substantial investments we are excited to share.
First, we have invested, and will continue to offer, paid training and support for all staff in the form of self-study, webinars and webcasts, seminars/conferences and staff “lunch and learns.”
Second, we have changed IT service providers (to a national leader for our industry) to improve efficiency, expand service, and limit cost increases. We will deploy new software solutions for more efficient data management in 2023.
Lastly, we have adapted to the labor shortage by creating part-time and seasonal positions. We have developed new relationships with technical experts to supplement internal talent, on demand. We have enhanced pay and benefits to remain competitive in our marketplace and continue to recruit for the right talent at the right level, all throughout the organization.
An elephant in the room???
Just as planned, Susan Scholtz will retire this year. Of course, no one person can replace the talent and experience of such a seasoned professional, but the combined investments above will go a long way to serve you well in her absence.
We have spent much time and energy in re-assignments and training. Thanks to Susan’s efforts, we expect a smooth transition will result from her planning and forward thinking. More importantly, Susan has offered to help as needed. I am personally eager to finalize the terms and conditions of a trailing agreement for her continued, if diminished, involvement.
Please contact me directly if you have concerns or questions about your work this coming year.
We will leave this up to you…
More than half our clients historically extend their tax returns on April 15. If that includes you, please help us avoid the common, natural bottle neck that occurs each year at that time while we stop to calculate estimated payments.
This year we will reach out in November and/or December to help evaluate 2022 estimates and first quarter 2023 payments due with your extensions.
Again, if you have special considerations this year, please let us know soon.
Likewise, if you would prefer we not spend this time on your behalf (even at the cost of penalty and interest) let us know sooner rather than later.
The outlook for 2023…
Hopefully, the Pandemic Relief legislation that has affected us so much this past year or two will subside and the IRS and NMTRD will rehire and return to work to make life better for us all.
At this writing, no major policy changes are anticipated that will affect many of us. If you have read about pending matters of tax policy you are concerned about, give us a call.
Click here for the most Recent Rio Rancho Observer article.
Click here for thoughts and data on the market outlook for the investing, from our colleagues at Archer Investment Corporation.
Best regards,
Roger C. Nagel, CPA/PFS, CMA, CGMA
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