Whats Up Next For 2020
Friday Recap of this week
Looking back to when we first clinked glasses and welcomed in the New Year with all of it's glorious and proverbial 2020 Vision slogans, I am starting to think that 2020 has truly become the year of hindsight and foresight all at once.
Things are still not running smoothly yet, nor do we expect our new world to be running smoothly for the foreseeable future. But 2020 has left many of us wondering what is in store for us next. But despite the challenges a lot of small businesses are moving forward.
According to Market Watch, "All 50 states are in the process of reopening about three months after they were stopped to avoid the spread of the virus."
So, as this week comes to a close here are some trends to consider:
- Unemployment numbers dropped further by 83K to 1.54 Million
- The housing market is going strong
- The feds (once again) expand the terms of the Main Street Lending Program
And even though unemployment is still high according to CNBC , "Initial claims totaled 1.54 million, compared with the 1.6 million expected from economists surveyed by Dow Jones and a plunge of 355,000 from the previous week’s total just shy of 1.9 million."
What's more interesting is that Realtors are now closing on more deals as they implement improved COVID selling practices, despite COVID concerns. It seems as the summer heats up so is the housing market.
Senior Economist George Ratiu of Realtor.com stated that "The big surprise of the housing market is that prices have remained quite resilient."
And, while there may not be as many houses on the market there is a definite surge of buyers looking to get in on record low mortgage rates.
This is good news for Real Estate Professionals.
Because going all the way back to March when our nation first went into lockdown we were meeting with panicked Real Estate Professionals who were shut down for business. We were helping them use Tax Planning as a leverage for getting their small business on course to get through the pandemic.
There was a definite shakeup so seeing the housing market revving up for the Summer is good news. But as a Tax Planner who specializes in helping Real Estate Businesses, I wasn't surprised to see the shakeup for so many Real Estate Brokers and Agents.
So what worries me the most right now is that many more still haven't sat down to make any real plans to stay the course with the "New Norm" that America and the world is facing.
It's a common problem even in strong economies to find Real Estate Professionals operating their businesses without the right tools to manage the financial side. Most of the time when we sit down with Real Estate Professionals we are their first real Tax Assessment.
And if you planning to slip back into the old comfort of doing business as usual, I want to remind you that no one ever knows what the future fully holds.
What Needs To Happen Now
Right now in the current climate there should be a bigger wake up call for small businesses to play a bigger role in bolstering their small business. A proactive approach towards growing and sustaining your business would not only create a stronger platform for getting through 2020 but it would finally strengthen the core of your operation.
And while no one can offer up all the answers to get everyone safely through this pandemic and beyond there are indeed things small businesses can do to better navigate taxes in a COVID World.
For one, more Real Estate Brokers and Agents should seek out a Tax Expert to institute strategies that maximize cash flow for your Real Estate Business, and to develop plans and timelines for using them. And this approach towards planning should including looking at your business structure to ensure that it's still effective for today.
Because there are many holes in a small business's financial security that can often be addressed with proper tax planning. And the world we are living in is a prime example of why it is important to build in these type of foundations for your business.
Because even though we don't know what 2020 still holds and cannot control everything around us we can control how we react to the what is going on.
I hope this article helps you as life and success begin to once again emerge. If you have any questions or comments feel free to reach out to me here on LinkedIn and make sure to check us out at The Tax Planning Pros.