Blog

Subscribe To Newsletter

Keep up to date on the latest tax and accounting news and updates to our firm.

July 2022

The recent run of inflation is causing many people to rethink how to save and where to spend. In this month’s newsletter, there is a recap of the traditional role of how your bank accounts work together to provide a valued resource to handle your funds. There's also a great article on how to identify and manage against shrinkflation.

Plus there are a couple of timely tax articles including a review of common tax surprises and suggestions on making sure you get the most out of the recently increase standard mileage rates recently announced by the IRS.

Please feel free to forward the information to someone who may be interested in a topic and call with any questions you may have.

Contents

Layering Your Bank Accounts

Time for the classic banking approach to make a comeback?

Layering Your Bank Accounts imageFor years, savings and checking accounts provided very little in the way of interest income. In our current inflationary times, however, interest rates are on the rise. What is also on the rise is the comeback of traditional banking products. Here is a review of how your bank accounts traditionally work together as a team to provide you the best security and value for your money.

The checking account: 30 days of funds

Basic savings account: 2 to 6 months of funds

Higher-interest bank accounts: Lots of choices

When you're trying to decide where to keep your money, there are also tax ramifications to consider. So keep this in mind as you review how your bank accounts work together as a team.


Watch for These Tax Surprises

Our tax code contains plenty of opportunities to cut your taxes. There are also plenty of places in the tax code that could create a surprising tax bill. Here are some of the more common traps.

Please call to schedule a tax planning session so you can be prepared to navigate around any potential tax surprises you may encounter on your 2022 tax return.


Shrinkflation is Upon Us!

Be aware, be prepared

Inflation is upon us, and a hidden gem used by companies to combat price increases is often hidden from the unaware. It's called shrinkflation. Here's what you need to know about this hidden price hike and what you can do to cope with its effects.

Shrinkflation is Upon Us imageDefining shrinkflation

Shrinkflation is the technique of downsizing a product or ingredients to lower costs. In many cases the retail price of something will not change, but the amount of product in the package is lowered. Common techniques include putting less in a package or changing the amount of a high-cost ingredient in the product.

And the changes are often subtle. Would you realize the amount in a box is lowered by 1/2-an-ounce if the box stays the same size? Or that your cereal has fewer raisins in it than a month ago?

Edgar Dworsky, a former assistant attorney general in Massachusetts, recently spoke with the Consumer Federation of America about changes he's been tracking in grocery isles. Here are some recent examples of shrinkflation:

  • Kimberly-Clark's Cottonelle Ultra Clean mega rolls of toilet paper are reduced from 340 sheets to 312
  • Keebler's Chips Deluxe with M&Ms packages are now 9.75 ounces, down from 11.3 ounces
  • Gatorade's 32-ounce bottles are now 28 ounces
  • Cadbury is reducing the size of its popular chocolate bar by 10%

Knowledge is key

While many manufacturers are transparent about these changes as they combat inflation, it is not as apparent to spot when you are shopping. Here some are suggestions to help you identify and combat shrinkflation.

Remember, inflation is here and everyone needs to cope with it, including manufacturers. But by being aware, you can retain some control to reduce inflation's impact on you and your family.


Your Business Mileage Deduction Just Became More Valuable

Your Business Mileage Deduction Just Became More Valuable imageYour business mileage tax deduction just became more valuable for the rest of 2022 after a recent announcement by the IRS.

Starting July 1st, the IRS's business mileage rate is increasing by 4 cents, to 62.5 cents per mile, while the medical and moving mileage is also increasing by 4 cents, to 22 cents per mile. The previous mileage rates still apply through June 30th.

Here are some tips to make the most of your business's vehicle expense deduction.

Please call if you have any questions about maximizing your business’s vehicle expense deduction.



Newsletter Archive

Please note: Some material may be time-sensitive and may no longer apply.
Please contact us with any questions.
  1. Posted on: 2022-09-06
  2. Posted on: 2022-08-02
  3. Posted on: 2022-05-31
  4. Posted on: 2022-05-03
  5. Posted on: 2022-04-05
  6. Posted on: 2022-03-01
  7. Posted on: 2022-02-01
  8. Posted on: 2022-01-04
  9. Posted on: 2021-11-30
  10. Posted on: 2021-11-02
  11. Posted on: 2021-10-05