The Tax Deadline Passed & Now This

As the weekend emerges one again we are still seeing a hot Real Estate Market despite reported surges in the coronavirus. Will the trend continue?

We certainly hope so, given the fact that more employees are working from home permanently with more options as to where they can live.

So, how exactly did this week shape up in terms of the Housing Market, Economy, Coronavirus and more?

Here is your recap:

-The July 15th Extended Tax Deadline came to a painful close for many CPAs who are accustomed to being MIA after April 15th, according to Bloomberg.

-U.S. home construction jumped 17.3% in June says MarketWatch, “as buyers drive up price and demand in many coveted areas where there are more buyers than sellers.”

- Unemployment is still declining, as more companies begin hiring. Though at last report CNN and other news outlets are reporting a “slower pace due to COVID-19 surges with only 10,000 (seasonally adjusted) fewer unemployment claims.”

-Lawmakers are also closer to passing a new Stimulus Bill but we are still waiting to hear what the final deal could be, but it looks like more stimulus funds may be signed into law soon.

And today Mnuchin was heard hinting at more forgiveness of PPP’s for truly small businesses. 

“Secretary Treasury Secretary Steven Mnuchin said Friday, “policymakers should consider blanket forgiveness for all smaller businesses that received PPP loans. He also said the Trump administration supports adding more funds to the $660 billion program, as well as allowing especially hard-hit businesses to apply for a second emergency loan.” -Reuters

But of course any news on the PPP is still speculation and expectations until it is signed into law.

So, Here's The Thing

With everything that is going on these days, I can’t help but ask you about your tax plans. It’s not something I typically bring up on the Friday Recap. But for one, I am a Tax Planner, and two, we just pulled out of the July 15th Tax Deadline for a really tough year in general.

After speaking to many harrowed Real Estate Professionals this week who had their taxes prepared by their CPA and went away with a high tax bill , it's clear as usual that many Small Businesses simply don’t have a plan in place to deal with taxes.

It's why I'm always on my soap box. It's why I decry the importance of tax planning to every business owner I meet. Because of what I witness in my field and because I’m committed to making a difference.

And I wouldn’t be true to my reputation if I didn’t tell you that the biggest problem that many of you face is not COVID-19 or the economy. You're not winning big because the housing market is up, or falling under a pile of debt because the housing market fails. And I'm not trying to sound cold or crass about this.

Hear Me Out

Truth isn’t always fun, or easy to chew on. But if I don’t speak the truth I would be doing a disservice to you and the many Real Estate Professionals I reach every day. Because if more Real Estate Professionals or any small businesses in general, made tax planning a priority then more small businesses wouldn’t just thrive in good times and die on the vine through rough patches or pandemics.

Tax Planning is such a necessary part of running a small business. And I know most CPAs prepare taxes and then they are gone. The method of being present for my clients all year long is absurd to many of them. Which is why many CPAs felt stressed with the extended tax deadline. It's why many said this tax season was the most brutal.

The sad part is that many Real Estate Professionals that I’ve spoken with are still struggling, despite their CPA being a little more reachable than is typical. And if what I’m saying isn’t setting off bells and whistles in your head then let pull the fire alarm.

Because tax preparation should play the smaller part in your plans. Tax preparation alone incurs higher tax debt when tax planning is not engaged in through the whole year. It costs a lot of small business owners their livelihood.

What Is Tax Planning?

Real Tax Planning is an ongoing business relationship with a tax expert that has your back all year long. They make sure that the work they do for you keeps more money in your bank.

Right now as we are seeing the market shifting up and down with the surge of this pandemic, stop and think about your ongoing plans. We see a lot of positives but we have no guarantees, especially in this climate. The most important thing for you to do right now is shore up your taxes, and focus on increasing your personal wealth. 

And I hope you’ll take my points to heart, because I certainly did when I decided that this was the direction that my message needed to take as I looked out over the past week.

But this weekend I hope you'll consider your next steps in the coming week. Maybe sit down with a Tax Expert to get a plan in place. Because your financial decisions going forward need to be sharper than ever.

Have a great weekend, If you have any questions or comments or would like to know more about how Tax Planning can benefit your Real Estate Business please feel free to reach out to me here on LinkedIn and make sure to check us out at The Tax Planning Pros.