Wealth Building Tips for Millennials
Millennial! Another of those media driven buzzwords, used to label those between the ages of 18 and 34, while the term Gen Xers define those between 35 and 50 years of age. Boomers, the group to which I belong, are those 51 through 69. This post covers 8 key pieces of advice I proffer to this generation.
True or False? — It Takes Money to Make Money
The short answer is YES; of course it takes money to make money. To make money in the stock market, you must have money to make the initial stock purchases. Starting a business requires money to buy inventory, marketing materials, office space and equipment. Even lottery winners had to have the seed money required to buy the ticket. The only exceptions that come to mind are inheriting, stealing or finding money.
Ease Your Way In To The Stock Market
Heads up, you know darned well that you have to do something with your money. Something besides enjoying your weekends and getting your hands on the latest electronic gadget. That something, as you have probably already figured out is about getting up close and personal with the world of investments.
Making Cents of Online Investment Services – Which is Best?
The question of the day is all about using online investment services. In other words; Should You or Shouldn’t You? Naturally, as you might well expect with this sort of question, there is no one size fits all answer here. You see, for some people, using an online investment service is a no-brainer, whereas for other people not so much.
Business Tax Tips
1) Don’t forget the 1099s. If you paid anyone that is not incorporated $600.00 or more during the last calendar year, you need to send them a 1099-MISC. Be sure the name on the 1099 matches the name on the checks you paid to them and that you include their Social Security Number or Tax ID. Just to make things interesting, you must also send 1099-MISC to anyone to whom you paid $600.00 or more for legal services even if they were incorporated.
Buy A Preowned Clean Vehicle Get A Tax Credit
Preowned Clean Vehicle Buyers Get A Tax Credit
Used electric vehicles purchased after 2022 and before 2033 may qualify for a tax credit of up to $4,000.
Qualified buyers who acquire and place in service a previously owned clean vehicle, are allowed a credit equal to the lesser of $4,000 or 30% of the vehicle’s purchase price. No credit is available if the buyer’s modified AGI for the year of the purchase or, if lower, the preceding year exceeds $150,000 for MFJ ($112,500 for HOH, and $75,000 for all others).
Thinking about buying a previously owned clean vehicle? Be sure to check out the rules under IRS Code Sec 25E. Not all previously owned clean vehicles qualify for the credit neither do all purchasers.
Before you buy check IRS Code Section 25E below.
Internal Revenue Code § 25E Previously-owned clean vehicles.
Caution: Code Sec 25E, following, shall apply to vehicles acquired after 12/31/2022.
(a) Allowance of Credit.
In the case of a qualified buyer who during a taxable year places in service a previously-owned clean vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of-
(1) $4,000, or
(2) the amount equal to 30 percent of the sale price with respect to such vehicle.
(b) Limitation based on modified adjusted gross income.
(1) In general.
No credit shall be allowed under subsection (a) for any taxable year if-
(A) the lesser of-
(i) the modified adjusted gross income of the taxpayer for such taxable year, or
(ii) the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds
(B) the threshold amount.
(2) Threshold amount.
For purposes of paragraph (1)(B) , the threshold amount shall be-
(A) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $150,000,
(B) in the case of a head of household (as defined in section 2(b)), $112,500, and
(C) in the case of a taxpayer not described in subparagraph (A) or (B), $75,000.
(3) Modified adjusted gross income.
For purposes of this subsection, the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911 , 931 , or 933 .
(c) Definitions.
For purposes of this section.
(1) Previously-owned clean vehicle.
The term “previously-owned clean vehicle” means, with respect to a taxpayer, a motor vehicle-
(A) the model year of which is at least 2 years earlier than the calendar year in which the taxpayer acquires such vehicle,
(B) the original use of which commences with a person other than the taxpayer,
(C) which is acquired by the taxpayer in a qualified sale, and
(D) which-
(i) meets the requirements of subparagraphs (C) , (D) , (E) , (F) , and (H) (except for clause (iv) thereof) of section 30D(d)(1), or
(ii) is a motor vehicle which-
- satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3) , and
- has a gross vehicle weight rating of less than 14,000 pounds.
(2) Qualified sale.
The term “qualified sale” means a sale of a motor vehicle-
(A) by a dealer (as defined in section 30D(g)(8) ),
(B) for a sale price which does not exceed $25,000, and
(C) which is the first transfer since the date of the enactment of this section to a qualified buyer other than the person with whom the original use of such vehicle commenced.
(3) Qualified buyer.
The term “qualified buyer” means, with respect to a sale of a motor vehicle, a taxpayer-
(A) who is an individual,
(B) who purchases such vehicle for use and not for resale,
(C) with respect to whom no deduction is allowable with respect to another taxpayer under section 151 , and
(D) who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle.
(4) Motor vehicle; capacity.
The terms “motor vehicle” and “capacity” have the meaning given such terms in paragraphs (2) and (4) of section 30D(d) , respectively.
(d) VIN number requirement.
No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.
(e) Application of certain rules.
For purposes of this section, rules similar to the rules of section 30D(f) (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section.
(f) Transfer of credit.
Rules similar to the rules of section 30D(g) shall apply.
(g) Termination.
No credit shall be allowed under this section with respect to any vehicle acquired after December 31, 2032.
Florida Sales Tax
Sales Tax in Florida Can Be Complex
Think You Understand Florida Sales Tax? Confusion can be as close as your next trip to the 
grocery store.
While many think it’s a simple as what you can eat and what you can’t — this is just not true.
Let’s review some examples.
Plain, drinking water is exempt from sales tax, but if it’s carbonated or flavored, it’s subject to Florida sales tax. Natural fruit juice with 100% fruit is exempt, but the moment it wears the labels “drink,” “ade,” “beverage,” “cocktail,” or “flavored,” it’s taxable.
Cookies, muffins, bagels and other bakery food items, when sold by bakeries, pastry shops, or similar establishments, where the “seller” does not have an eating facility — the goodies are exempt from sales tax. If the Seller has an eating facility, then the baked goods are taxable, unless the products are sold for consumption off premises. To that end, here’s what the Department’s Form DR-46NT actually says “Bakery products sold in quantities of five (5) or fewer are presumed to be TAXABLE.”
If your business deals with items subject to Florida sales tax, or you are not sure if your products or services are subject to Florida sales tax, it’s important to consult an expert. Not knowing can cost you as a merchant. A business is responsible for sales tax even when they fail to collect it from their customers. This means your business could be held responsible for the sales taxes it failed to collect on items it should have taxed but failed too due to lack of knowledge.
Bunching Deductions
Not able to itemize every year? Think about bunching deductions in the years you can itemize.
If you have qualified itemized deductions that are NOT equal to the standard deduction in one year, you might be better off pushing deductions to the next year and itemizing every other year.
For example, if you have significant unreimbursed medical expenses for 2023, it may make sense to accelerate out-of-pockets costs for planned elective procedures or medical equipment into this year to bring you over the standard deduction amount. Keep in mind, you can only deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI). So, if your AGI is $50,000, the first $3,750 of qualified expenses (7.5% of $50,000) don’t count.
Bunching charitable deductions can be a tax-smart way to help accomplish your philanthropic goals.
One way to achieve this is through the use of donor-advised funds which are established with qualified public charities. As the donor, you transfer money, or appreciated stock, to the fund and receive a deduction in the year the charitable donation is made.
For example, if you plan to give $3,000 per year to charity over the next five years, but that annual amount is not enough for you to itemize and take a deduction for your charitable gifts, you could donate the full $15,000 (5 X $3,000) in 2023. That would enable you to itemize this year’s tax return and take the standard deduction in the remaining years (2024 through 2027). The contributions within your donor-advised fund could still be disbursed to the charity on an annual basis, over the five-year period. However, it’s important to understand that contributions to donor-advised funds are irrevocable.
Time to Verify
Now Is The Time To Verify Information Needed for 1099-MISC’s and 1099-NEC’s
Businesses that pay $600 or more for services or rents during the year should review 
vendor information to make sure they have what they need to prepare the required forms at the end of the year.
Do you have the correct legal name for each person or business along with their tax ID number, and address on file? If not, November is the perfect time to update your records.
The best way to collect this information is to ask all vendors and service providers to complete IRS form W-9 and return it to your business.
Vendors and service providers are required to provide this information by law, so if someone refuses just hold their next payment until they provide what is required.
Estate Planning
Estate Planning Watch Out For the Cliff
Watch out for the coming estate tax cliff.
The Tax Cuts and Jobs Act increased the estate tax exemption amount through 2025. After 2025 the unified credit drops from $12.92 million per individual for 2023 to a figure around $7 million, depending on inflation adjustments, in 2026.
Taxpayers concerned about the drop in the unified credit may be considering making sizable gifts in 2023, 2024 and 2025. The IRS has assured taxpayers that such gifts, made under the current unified credit, will not be clawed back into the estate if the unified credit is eventually reduced.
Note: NEVER gift money or property you might need. Once a gift is made you cannot demand the return of the funds or property.