America has always been a land of opportunity, but most Americans don’t seem very good at managing those opportunities. The average American has just $87,000 saved for retirement, dimming hopes for endless days of pickleball in the sun. Nearly 4 in 10 can’t cover $400 in an emergency, which explains a landscape littered with dollar stores, pawnshops, and payday lenders.
tax
Too Many Men on the Field?
The NFL playoffs mark the unofficial beginning of Tax Ad Season. As usual, Intuit’s TurboTax will be suiting up against H&R Block. TurboTax is charging out of the locker room with a new “Make Your Moves Count” campaign celebrating those who are “carving their own path, making bold moves and living in new and modern ways.” We’re not sure what any of those things have to do with taxes, but the ads will focus on the company’s tax experts, AI technology, and filing solutions, “ensuring the best outcomes for all types of filers.”
The Twelve Days of Taxmas
Every year, PNC Bank publishes its “Christmas Price Index” to track the cost of the Twelve Days of Christmas. For 2023, it’s a hefty $46,730. That’s up 13% since we looked two years ago. (Inflation bites.) The index may not be completely accurate—for example, the ten lords-a-leaping are valued using the cost of male ballet dancers rather than card-carrying British lords. As for those eight maids-a-milking, well, “cows not included.” But still, we always wonder what sort of taxes we’re looking at on the whole affair.
This Honorable Court Is Now in Session
The U.S. Supreme Court rarely hears tax cases. Last week, however in Moore v. United States, they heard one such dispute that could blow a massive hole in the federal budget. Very briefly (because a deep dive would make your head hurt), it involves whether the government can tax income before a taxpayer actually “realizes” it. Specifically, the plaintiffs, Charles and Kathleen Moore, are challenging a section of the Tax Cuts and Jobs Act of 2017, which imposed a one-time tax on income that U.S. corporations’ shelter in overseas subsidiaries. If the Court rules for the plaintiffs, it could cost the Treasury $340 billion in tax and topple key pillars of the current code.
Tik Tok Tax Tips
Does the tax code really say you can rent your house to your own business? Well, it doesn’t say you can’t. So, for years, the Augusta Rule has been one of those strategies with no explicit IRS support. However, two recent Tax Court decisions affirm that it’s kosher, so long as you dot your i’s and cross your t’s.