In this post we want to cover some brief ideas that can give you some ideas for you and your business. Here you will find some ideas that can help you with your taxes, retirement, and give you a brief economic outlook. At Bay Area Mastermind our members always benefit from these insights and you can too by taking advantage of our “Test Drive“.
On January 1 2010, high incomers will get access to Roth IRA’s. As the income limit on converting a regular IRA to a Roth IRA is set to disappear after this year. Upper bracket filers can get a head start this year on creating a Roth by setting up a regular IRA during 2009 and making nondeductible contributions to it. Then in 2010, they can convert it to a Roth IRA, paying tax only on any earnings. Check with you own financial adviser to see if this is something you can take advantage of.
Carry Back Losses
Time to take advantage of expanded loss carry back rules is running out. Companies have until Oct 15 2009 to elect to carry back a 2008 net operating loss for up to five years instead of two. If you have already filed for 2008 you can file an amended return to claim the longer carry back.
A Potential Additional Deduction
If you took out a 2nd mortgage to buy business equipment you can elect to treat the loan as if it is not mortgage debt and deduct the interest paid on it as a business interest. You make the election by attaching a statement to your income tax return. However, filling a late election will not work even if you relied on your preparer.
Buying Term Insurance
Now may be the best time to begin shopping for term life insurance as it appears that premiums have hit bottom. You may be able to lock in rock bottom rates if you act soon. One place to check is AccuQuote.com. There you can get quotes from dozens of insurers.
Recent reports are suggesting that retail space won’t top out until mid 2010 at the earlier.It appears that even strip malls that have traditionally weather economic downturns are feeling the pinch. Nationwide 2/5’s are suffering with vacancy rates of 50%.
When we look at retail
space on a per capita basis in isn’t likely to grow much further. One reason is that the appeal of recreational shopping is going away as Americans boost savings and cut back on their consumption.
The savings rate is growing from the lows of 1.2% of the last decade.
Some estimates expect the rate to stabilize between 7% to 10% over the next several years. What is effecting the rate is continued concerns over job security and the drop in net worth from stock market losses. Every percentage point increase in savings knocks off $115 billion off consumer spending.