2021 welcomed a flurry of new tax changes, expanding certain COVID-related stimulus and making permanent some of the tax benefits that were set to expire in 2020. In addition, California voters passed Prop 19, introducing significant property tax changes to real estate inheritance in California.
The provisions of the CARES Act are detailed and complex. We hope this summary provides some interim guidance specific to entertainment professionals and small businesses as we collectively navigate these challenging times.
Last week congress passed the most comprehensive overhaul to the US tax code in decades. While the largest parts of that bill target large corporations (the drop in the corporate tax rate could save the six largest media conglomerates a combined $6 billion annually by one estimate), many of them will affect you directly.
Your credit score is used to rate your risk as a borrower, and landlords, lenders and potential employers may look to your credit score as an indicator of financial responsibility. This can affect your ability to rent an apartment, the interest rate on your mortgage and even your career opportunities. As an example, the interest rate on a mortgage could be a full percentage point higher for someone in the lowest credit tier (550 and below) than for someone in the highest credit tier (750 and above). For a $400K mortgage this would result in more than $100K of additional interest over the life of a 30 year loan!
Every year now, it seems that tax season brings about a resurgence of financial fraud. As we rely more and more on smartphones, we open up a whole new world to cybercriminals who desire access to our financial accounts, email accounts, text messages, etc.
While it may not be our favorite topic, all of us have been taken advantage of at some point in our lives. The recent FBI crackdown on a $100 million-plus ATM Ponzi scheme perpetrated in our own backyard hit close to home for many of our clients and has been a frequent topic at recent client meetings.
We are a learning organization: We continuously increase our awareness, knowledge and experience in order to provide the best practices in our profession.