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Naming the New Year: 2023 “Hungry Hummingbird”

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Like many people, I enjoy a good tradition.

Whether it is a familiar tradition like the family vacation or nightly family dinners, One of our favorite Traditions is Naming the New Year.

The New Year Name is chosen before the new year starts and will reflect important plans, challenges, obstacles, etc. ahead in the New Year.

Typically We’ve used a simple nomenclature = action + name

For instance,

  • 2019 – “Riding Tiger”
  • 2020 – “Running Bear”
  • 2021 – “Soaring Eagle”
  • 2022 – “Hanging Man”
  • 2023 – “Hungry Hummingbird”

Why is this important?

In my experience, the tradition of naming the New Year has been at times inspirational, accurate and foreboding.

2022 “Hanging Man”, for example, was pretty accurate when compared to the ferocious reverse of primary trends in Housing and Stock Markets.

As entrepreneurs and business owners, it is important to work IN your business as well as work ON your business. The New Year name helps us associate an idea larger than any 1 person and at the same time focus 100% on the work at hand.

2023 “Hungry Hummingbird” will be a year of restless hovering, extreme territorialism and mass migration. Much like a Hungry Hummingbird, Smart Business will only pursue positive-cash-flow opportunities OR move on to the next flower.

A lot of people probably stopped reading when I said “nightly family dinners”, but for those of you who appreciate a tradition, We wish you a happy and safe New Year and best wishes in 2023.

Info@mrarrachecpa.com

Photo 116469594 / Hanged Man © Vvictori 

Naming the New Year: 2022 “Hanging Man”

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Like many people, I enjoy a good tradition.

Whether it is a familiar tradition like the family summer vacation or something simple like nightly family dinners, the “remember and repeat” activities carry much importance on celebrating the past and planning for the future.

One tradition we enjoy Naming the New Year.

The New Year Name is chosen before the new year starts and will reflect important plans, challenges, obstacles, etc. ahead in the new year.

Typically I’ve used a simple nomenclature = action + name

For instance,

  • 2019 – “Riding Tiger”
  • 2020 – “Running Bear”
  • 2021 – “Soaring Eagle”
  • 2022 – “Hanging Man”

Why is this important?

In my experience the tradition of naming the New Year has been at times inspirational, accurate and foreboding.

2021 “Soaring Eagle”, for example, was pretty accurate for the Housing and Stock Markets that are still continuing to Roar into the New Year.

As entrepreneurs and business owners it is important to work IN your business as well as work ON your business. The New Year name helps me associate an idea larger than any 1 person and at the same time focus 100% on the action in front of me.

2022 will be a year of sacrifice and surrender but prime for contemplation and changing perspective.

A lot of people probably stopped reading when I said “nightly family dinners”, but for those of you who appreciate a tradition, I wish you a happy and safe New Year and best wishes in 2022.

If you have traditions please share in the comments below or email to

Info@mrarrachecpa.com

Photo 116469594 / Hanged Man © Vvictori 

Get ready to apply for PPP second draw loans

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Get ready to apply for PPP second draw loans(12-28-20)

The President has signed the Consolidated Appropriations Act of 2021 (H.R. 133), which, among other things, authorizes a new round of Paycheck Protection Program (PPP) loans called second draw loans. This allows some borrowers to request supplemental funding on their original PPP loans.

Second draw loans

Second draw loans are only available to businesses that employ 300 or fewer employees (part-time and seasonal count), and have at least a 25% reduction in gross receipts.

It is unclear whether applicants must have already received a loan under the first round of available PPP loans in order to qualify for the new second draw loans (we are awaiting guidance from the SBA on this). However, it is clear that if they have received a prior PPP loan they must have used, or will use, the first loan prior to the disbursement of a second draw loan.

Supplemental funding

Borrowers can also submit supplemental PPP loan requests in all cases where their original PPP loan amount would have changed due to new rules that have been released. This applies to partnerships where the original loan did not include the self-employment earnings of the partners. But it also applies to borrowers who returned their original loans, or took reduced loans to qualify for other benefits that are no longer limited for PPP recipients, such as the Employee Retention Credit.

Borrowers must request this additional funding before forgiveness is granted on their original PPP loan.

Deductions allowed

H.R. 133 also clarifies that borrowers who have loans forgiven may claim deductions for expenses even if expense were paid with loan amounts that were forgiven. This applies to all PPP loans.

California does not conform to this federal law, which is amended as part of the stimulus package. Taxpayers will still be required to reduce their deductions on the California return because California enacted AB 1577 (Ch. 20-39), which specifically prohibits taxpayers from claiming any deductions or credits for expenses that are paid with forgiven PPP loan amounts.

Email if you have questions about this article or your business.

Info@mrarrachecpa.com

New Year Nomenclature: 2021 “Soaring Eagle”

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Like many people, I enjoy a good tradition.

Whether it is a grandiose tradition like the annual family vacation or a simple routine like weeknight family dinners, the “remember and repeat” activities carry much importance on celebrating the past and where we are going.

One tradition that is very similar to naming a new pet, car or ship; I name the new years.

The New Year Name is chosen before the new year starts and will reflect important plans, challenges, obstacles, etc. ahead in the new year.

Typically I’ve use a simple nomenclature = action + animal name

For instance,

  • 2019 – “Riding Tiger”
  • 2020 – “Running Bear”
  • 2021 – “Soaring Eagle”

In my experience the tradition of naming the new year has been at times inspirational, accurate and foreboding. 2020 “Running Bear” was right on the money.

Why is this important?

As entrepreneurs and business owners it is important to work in your business and on your business. The New Year Name helps me associate an idea larger than any 1 person and at the same time focus 100% on the action in front of me.

2021 will be a year of hard work and no short cuts but prime for new and continued growth.

A lot of people probably stopped reading and are hiding in there bedroom when I said “weeknight family dinners”, but for those of you who appreciate a tradition, I wish you a happy and safe New Year and best wishes in 2021.

If you have traditions please share in the comments below or email to

Info@mrarrachecpa.com

Merry Christmas For Sales Tax in California

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Merry Christmas for Sales Tax in California, Covid Style.

CDTFA Announced that Returns due between December 15, 2020, and April 30, 2021, for all but the largest taxpayers, will be extended.

Santa Claus’s CPA is coming to town 🎅

Taxpayers reporting less than $1 million in tax on a return originally due during this time frame are not required to seek an extension from CDTFA; relief will be provided automatically. 

Additionally, for these taxpayers, interest and penalties will not accrue on return amounts due, provided payments are made and returns are filed within three months of the original due date.

In recent press conferences and public announcements, for the first time EVER, the CDTFA is telling taxpayers to use sales tax money for necessary business operating expenses during this state of emergency.

This is dangerous for taxpayers who are not good with managing cash flow.

I strongly advise you to monitor and project your cash flow and PLEASE remember that the TAX is STILL DUE so make sure you communicate with the CDTFA immediately if you are in financial hardship.

You can read the full announcement at the following link.

https://www.cdtfa.ca.gov/services/covid19.htm

Reach out if you have any questions or want to talk more about this article or your business.

info@mrarrachecpa.com

Commercial Real Estate In Seizures. Dems shout back “He Needs Some Milk”

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Commercial real estate is going to be hurt bad in 2021 per expert predictions.

Downtown Los Angeles pictured below is the iconic US Bank building modeled after a Lighthouse tower; once thought to be a beacon for guiding the west, this slab of stone and metal sits like a tombstone looming over boarded up business windows and empty boulevard streets that reak of rot and recession.

Photo by Michael Arrache. Typically this street would be shoulder-to-shoulder with people and beautiful store fronts. Now its eerily empty.

Good news….

Famine for any broker still moving officespace, retail or hotels.

But like Warren Buffet says, when people are fearful get greedy.

For the winners out there who plan to ride it out (or Alamo that shit), the experts say to take advantage of short term swings in what we can only expect to be a very volatile short term market but plan for overall long term growth.

But good news if you’re a self employed CRE Broker. You can quality for free PPP loan money in certain cases. Talk to your bank’s SBA advisor for more information if you have not already but for sure see if you qualify for existing or upcoming government emergency money and freebies.

Reach out if you have any questions about this article or want to talk more about your business.

Info@mrarrachecpa.com

My Notes On 2021 Economic Forecast presented by Chapman University

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I recently attended an Economic Forecast presented by Chapman University via live webinar and here are my notes.

You can view a recording of the presentation here https://economicforecast.chapman.edu/2020-presentation/

  • General Notes
    • Presenters included James Dotti and Fadel Lawandy
    • The Chapman economic forecast has historically been one of the most accurate predictors of economic performance for over 30 years
    • James Dotti and his team have successfully predicted 17 of the last 18 presidential elections.
  • What happened in 2020?
    • Predicted a mild decrease in GDP growth(+2%), but COVID happened and annual GDP decreased by a large amount (-3%.)
    • Government Officials at State Level made exaggeration of an ermergency and unnecessarily shut down the economy
    • Covid Shutdown Cost: California shut down mandate causes loss of 500,000 jobs and countless businesses
    • Covid Shutdown Benefit: California shut down mandate saves 6,600 lives…
    • States with less stringent shut down mandates saw less job loss and stronger economic revovery
  • 2021 is going to be volatile with opportunities for buy in the short-term dips but expect long-term growth.
    • Growing Pent up demand – personal wealth dramatically increased in 2020 by 10%.
    • Housing affordability is at a recent all time high with historic low interest rates. Recent GDP recovery was driven primarily by consumer spending, not housing which is not necessarily good news. Watch housing market closely in 2021
    • Stock Market performance is based on how the economy is predicted to perform. Currently predicted at modest +/- 3% growth. Historically, Dem Pres, Rep Senate and Dem House produce the best results for the market +/- 16%. IF Dems control all 3, then historically market +/- 6%.
    • Government spending good for economy and will drive inflation which is good in short term but overall will cause problem down the road. Due to the coronavirus pandemic, Congress and President Trump enacted the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) on March 18, 2020. The Committee for a Responsible Federal Budget estimated that the budget deficit for fiscal year 2020 would increase to a record $3.8 trillion, or 18.7% GDP.[5] The CBO preliminary estimate for the fiscal year 2020 deficit is $3.1 trillion or 15.2% GDP, the largest since 1945 relative to the size of the economy.[6]
    • Remote life will change the structure of work life, more comparable to women in the workplace during World War II.
    • Expect a lot of commercial real estate properties to change purpose or be elimated all together such as Hotels, Retail, Office Buildings, etc. Estimated 20% of NYC Hotels and Retail will close forever.
  • Innovation regions are a major focus for real estate investors because high paying jobs create local wealth and investment opportunities.
    • Phoenix, Carlsbad, Reno and Salt Lake City are areas of interest for innovation hubs with real estate and tax advantage opportunities.
    • Orange County needs to create more high-paying tech jobs to replace the Hospitality/Leisure employment loss to remove two-tier society.
    • Artificial Inteligence will create a lot high-paying tech jobs.

Thank you to Chapman University, speakers and sponsors for an amazing 2021 economic forecast. Some great takeaways including my favorite Real Estate tip – buy where the son goes in the winter.

Until next year, thank you and take care.

Contact our CPA today if you any questions about this article or want to talk more about your business or taxes.

Info@mrarrachecpa.com