Posts made in October 2024

Tax Tip! Is Your Office in a Historic Building? You May Be Eligible for a Tax Credit

To protect heritage sites and other history, the IRS implemented its rehabilitation tax credit, which offers an incentive to renovate and restore old or historic buildings. Here are some of the highlights to help you determine whether your building is eligible:

  • The credit may pay 20 percent of the qualifying costs of rehabilitating a historic building.
  • This 20 percent needs to be spread out over five years.
  • The credit doesn’t apply to the purchase of the building.
  • Taxpayers use Form 3468, Investment Credit, to claim the rehabilitation tax credit.

Although this credit might not significantly improve many situations, it’s still a step toward preserving our country’s history.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS9

Footnotes and Sources

  1. IRS.gov, April 30, 2024

Weekly Market Insights: Stocks Mixed Ahead of Election

Stocks were mixed last week as fresh economic data points and election-related uncertainty slowed market momentum.

The Standard & Poor’s 500 Index fell 0.96 percent, while the Nasdaq Composite Index rose 0.16 percent. The Dow Jones Industrial Average dropped 2.68 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 2.30 percent.1,2

Nasdaq Leads

Stocks were mixed for the first half of the week as investors geared up for a steady stream of Q3 reports. The 10-year Treasury yield continued to trend higher, which caught the attention of some traders.

Markets fell Wednesday morning with news that existing home sales fell to a 14-year low in October; still slowed by higher interest rates, sales are on track for their worst year since 1995. Also, pre-election jitters remained an undertow with traders.3,4,5

News that durable goods orders rose in September buoyed sentiment a bit. At Friday’s close, the Nasdaq, fueled by technology names, marked its seventh consecutive week of gains but the S&P 500 broke its 6-week winning streak.6,7

Footnotes and Sources

  1. The Wall Street Journal, October 25, 2024
  2. Investing.com, October 25, 2024
  3. MarketWatch.com, October 23, 2024
  4. The Wall Street Journal, October 23, 2024
  5. The Wall Street Journal, October 23, 2024
  6. ABA Banking Journal, October 25, 2024
  7. CNBC.com, October 25, 2024

Tax Tip: Tax Incentives Can Help You Further Your Education

Tax credits help with the cost of higher education by managing the income tax you may need to pay. The two tax credits available are the American Opportunity Tax Credit and the Lifetime Learning Credit.

Some education savings plans offer tax benefits if the individual qualifies. Also, you may be able to deduct higher education costs – such as tuition, student loan interest, and qualified education expenses – from your tax return.

Knowing your potential tax benefits may save you money if you’ve always dreamed about returning to school, whether to further your career or just learn something new.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS7

Footnotes and Sources

  1. IRS.gov, July 3, 2024

Weekly Market Insights: Sixth Week of Gains on Wall Street

Stocks posted modest gains last week, with quarterly earnings season in full swing and the election on the horizon.

The Standard & Poor’s 500 Index increased 0.85 percent, while the Nasdaq Composite Index rose 0.80 percent. The Dow Jones Industrial Average advanced 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 0.31 percent.1,2

Six in a Row

Stocks bolted out of the gate as the week began. The S&P 500 and the Dow Industrials hit record highs, with the Dow crossing 43,000 for the first time.3

Midweek, news of stronger-than-expected retail sales report contributed to overall market momentum. Retail sales rose a seasonally adjusted 0.4 percent in September, topping economists forecasts.4

As the week wrapped up, the technology sector helped fuel a rally that pushed the S&P and Nasdaq to another record high. It was the sixth straight week of gains for the S&P 500, Nasdaq, and Dow Industrials.5

Insight from Corporate Reports

There were many market forces pushing each other around last week.

Corporate earnings reports drove much of the market action. Some of the most extensive financial stocks surprised on the upside, supporting a narrative that the economy remains strong.

At the same time, a corporate report from one of the world’s largest chip manufacturing contractors revealed continued strong global demand for AI microchips. However, increasing investor anxiety was a constant undertow in trading as the November elections drew nearer.6

Footnotes and Sources

  1. The Wall Street Journal, October 18, 2024
  2. Investing.com, October 18, 2024
  3. CNBC.com, October 15, 2024
  4. The Wall Street Journal, October 17, 2024
  5. The Wall Street Journal, October 18, 2024
  6. The Wall Street Journal, October 18, 2024

Passport Power

Did you know that the IRS can revoke your passport if you owe the Internal Revenue Service $62,000 or more? That’s right; the IRS can revoke the passports of any taxpayer owing $62,000 or more, including penalties and interest.

Notably, if you’re currently paying off the debt or are contesting a tax bill in court, you should not be affected. However, anyone under an IRS tax lien could find their ability to travel hampered.

Contact a qualified attorney or tax specialist with questions about tax debts or other complex tax issues.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS9

Footnotes and Sources

  1. IRS.gov, June 12, 2024

Weekly Market Insights: Mixed Data Leaves Investors Anxious

Stocks advanced last week despite mixed inflation data, lurching oil prices, and lingering anxiety about the Middle East.

The Standard & Poor’s 500 Index gained 1.11 percent, while the Nasdaq Composite rose 1.13 percent. The Dow Jones Industrial Average picked up 1.21 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.23 percent.1,2

Up And Down Week

Stocks slipped on Monday as oil continued to rise but moved higher on Tuesday as the technology sector showed the way. Oil prices fell back as investors took a wait-and-see stance concerning Middle East tensions.3

The S&P 500 and Dow Industrials hit fresh record highs on Wednesday but dipped Thursday morning after the latest Consumer Price Index (CPI) data showed inflation was warmer than expected.4,5

Earnings season kicked off Friday, and update reports from a few money center banks injected some enthusiasm into markets. Also, the Producer Price Index (PPI) report showed wholesale prices stayed flat last month, a welcomed update for investors. All three averages closed higher for the fifth consecutive week.6

Inflation Moves Markets

Despite news that showed retail inflation continued to decelerate in September, anxious investors focused on the fact that CPI came in slightly warmer than economists expected for September. Meanwhile, Friday’s PPI reading came in slightly better than economists expected, adding a layer of complexity for the Fed as it evaluates the inflation story.7,8

Footnotes and Sources

  1. The Wall Street Journal, October 11, 2024
  2. Investing.com, October 11, 2024
  3. CNBC.com, October 8, 2024
  4. MarketWatch.com, October 9, 2024
  5. The Wall Street Journal, October 10, 2024
  6. The Wall Street Journal, October 10, 2024
  7. The Wall Street Journal, October 11, 2024
  8. MarketWatch.com, October 11, 2024

Protect Your Financial Safety in Case of a Natural Disaster

No matter where you live, you should be aware of possible natural disasters in your area and plan accordingly by considering the following tax tips:

  • Update your emergency plan.
  • Create electronic copies of all important documents.
  • Document your valuables. Documenting ahead of time makes it easier to claim insurance and tax benefits if a disaster strikes.
  • You can call the IRS at 866-562-5227 with any natural disaster-related questions. The agency can provide copies of previous tax returns, order transcripts showing most line items, and more.
  • Net personal, casualty, and theft losses may be deductible if attributable to a federally declared disaster.


This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS10

Footnotes and Sources

  1. IRS.gov, July 24, 2024

Weekly Market Insights: Market Rallies But Ends Week Flat

Stocks were essentially unchanged last week as geopolitical tensions added some volatility to an otherwise quiet trading week.

The Dow Jones Industrial Average was flat (+0.09 percent), while the Standard & Poor’s 500 Index ticked up 0.22 percent. The Nasdaq Composite also was flat (+0.10 percent). The MSCI EAFE Index, which tracks developed overseas stock markets, was a bit more unsettled by the geopolitical events, dropping 3.74 percent.1,2

Stocks Flat, Oil Spikes

Stocks posted modest gains on Monday, encouraged by upbeat comments in a speech by Fed Chair Jerome Powell. However, the modest gains pushed the S&P 500 and Dow to fresh records.3

As Middle East tensions escalated on the first day of October, stocks fell, bond yields rose, and oil prices rose as the news unfolded.4

On Wednesday, all three averages were flat. An ADP report showed higher-than-expected private sector job growth—a metric investors focus on. Oil prices continued to rise as investors watched the developments in the Middle East.5,6

Then, on Friday, stocks rallied after the Labor Department’s September jobs report topped expectations.7

Jobs Out Front

The Labor Department’s jobs report gave investors some much-welcomed insights into the jobs market. At its September meeting, the Fed indicated it was watching the jobs market as closely as inflation, so updates on the jobs market are now considered as important as inflation reports.8

The report showed employers added 254,000 jobs, about 100,000 more than economists expected. It also showed that unemployment ticked down to 4.1 percent last month.9

Footnotes and Sources

  1. The Wall Street Journal, October 4, 2024
  2. Investing.com, October 4, 2024
  3. CNBC.com, September 30, 2024
  4. The Wall Street Journal, October 1, 2024
  5. The Wall Street Journal, October 2, 2024
  6. The Financial Times, October 3, 2024
  7. The Wall Street Journal, October 4, 2024
  8. The Wall Street Journal, October 2, 2024
  9. The Wall Street Journal, October 4, 2024

Selling Your Car or Buying From a Private Seller? Here Are the Tax Tips You Should Know

If you’re selling your car for less than what you paid, you likely won’t need to pay any sales tax because the Internal Revenue Service (IRS) considers selling a used car for less than what you paid a capital loss. However, if you’re selling your car for more than what you paid (like if it’s a classic car you’ve restored and it’s increased in value), you may need to pay sales tax.

If you’re buying a car from a private seller, you may need to pay sales tax, but this sales tax doesn’t go to the seller – it goes to the Department of Motor Vehicles and is part of your car’s registration.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from CarGurus9

Footnotes and Sources

  1.  cargurus.com, May 8. 2024

Weekly Market Insights: Rate Cut Momentum; D.C. Averts Shutdown

Stocks moved higher last week, continuing to build on the momentum generated after the Federal Reserve decided to cut short-term rates by 0.50 percent.

The Standard & Poor’s 500 Index gained 0.59 percent, while the Nasdaq Composite rose 0.95 percent. The Dow Jones Industrial Average added 0.62 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained an eye-catching 3.53 percent.1,2

Congress Passes Spending Bill

Stocks started the week tepidly but in the green, as investors mostly shrugged off Tuesday’s weak consumer confidence report. Then, at midweek, markets put on the brakes as investors appeared to take profits after a four-day winning streak.3,4

On Thursday, markets rallied on news that the final Q2 gross domestic product estimate showed the economy increased at an annual rate of 3.0 percent. Then Friday, the PCE, or Personal Consumption and Expenditures Index, showed inflation had cooled slightly more than expected in August, which some believe may influence the Fed’s decisions on short-term rates at its November meeting.5

Finally, a continuing resolution was passed by both houses of Congress last week and signed by President Biden Friday morning, assuaging concerns over a government shutdown. The resolution funds the government until December 20.6

China’s Stimulus Package

This week, the head-turning performance came from outside the U.S.

As measured by the MSCI EAFE (Europe, Australia, and Far East) Index, international stocks rose more than 3 percent following news of China’s stimulus package, which could be as much as 2 trillion yuan, or $284 billion. China’s program also cut banks’ reserve requirements and lowered a key short-term interest rate.

While the EAFE Index doesn’t track stocks from Mainland China, the stimulus package had far-reaching implications for other countries.7,8

Footnotes and Sources

  1. The Wall Street Journal, September 27, 2024
  2. Investing.com, September 27, 2024
  3. CNBC.com, September 24, 2024
  4. CNBC.com, September 25, 2024
  5. BEA.gov, September 26, 2024
  6. The Wall Street Journal, September 22, 2024 OR
    The Hill, September 25, 2024
  7. The Wall Street Journal, September 27, 2024
  8. The Wall Street Journal, September 27, 2023