Just in Case it Matters to You
- PANDEMIC LOCKDOWNS HAVE FOSTERED THE COURAGE TO BEGIN MANY NEW BUSINESSES, either by necessity or in response to stir-craziness. Be aware that for tax-purposes: (1) HOBBY activities can generate taxable revenue without deduction for any related expenses. The primary test to distinguish ‘business’ nature of the activity is whether it was “conducted with continuity, regularity, ‘good faith’ objective, and the primary purpose of realizing income or profit… particularly managing & operating the activity in a business-like manner”; Given that criteria, (2) launching a qualifying BUSINESS involves initial expenses that are also limited for ‘write-off’ deductibility in the first year – up to $5K each for ‘Start Up’ expenses and for ‘Organization’ costs, along with other limitations. If you began a business this year, or contemplate doing so next year, call DCG to best structure and optimize your income tax benefits. [KIPLINGER LTR – 3/6/20]
- ANOTHER CALIFORNIA BRILLIANT PLAN: The San Diego school system has taken the lead “in this era of woke nonsense pretend-systemic racism and prostration before the BLM alter,” with its school Board having adopted “proactive anti-racist policies: (1) to no longer consider non-material factors in student grading – things like turning work in on time and classroom behavior counting instead towards a ‘Citizenship’ grade; (2) with the Academic grade focusing only on ‘Mastery of the Material,’ versus a yearly average which might penalize students who get a slow start or struggle at points during the year.” So, accountability measures no longer will define a kid’s understanding of Knowledge, any grade ‘inflation’ will apparently not interfere with real-world competition (in college or life) against other kids measured by true academic performance, while “tweaking grading scales, admission standards, and anything else to affect a pre-desired outcome – based solely on race – is not considered racial discrimination.” Wow. [RED STATE – 10/18/20]
- ‘BAILOUT’ FOR FISCALLY MISMANAGED STATES is a major issue in the congressional deadlock over another Stimulus package. The fact is, that state lawmakers “don’t typically assess the necessity or effectiveness of discretionary spending, because that’s not how the process was designed. In most states the Appropriation process resembles a negotiation between the legislature and government agencies about how much to increase the prior year’s budget – rather than making a systematic effort to determine what the state needs to do and how those priorities could be achieved efficiently… Those who claim that spending less will cause service cutbacks are like kidnappers making ransom demands. Too many elected officials would rather have taxpayers submit to a tax increase now, or pay off bailout debt later, than do the hard work of eliminating unnecessary spending… While policy makers have a responsibility to make the most effective use of taxpayer money,” that’s contradictory to their desire for power. Unsurprisingly, the 41 states which collect income tax from their residents spent 44% more per resident in 2018 than the 9 states without an income tax. “Bailing out the profligate state & local governments will only ensure more of this bad behavior in the future.” [WALL STREET JRNL – 10/16/20]
- DEMENTIA IS THE CONDITION WHERE MEMORY & THINKING ABILITIES OF SENIORS LAPSE, a result of “tangles & plaque buildup of countless cells & neurons on the brain.” Newest research at Northwestern University found this condition most susceptible to people who are “anxious, moody, impulsive, and who generally worry more… Reviewing psychosocial surveys of patients before their brains were donated to science, researchers found that individuals with a greater tendency for self-discipline, organization, diligence, high-achievement & motivation fought off the causes of dementia better, and could function at a high level despite the neuropathology of cognitive decline.” [LBN EXAMINER – 10/18/20]
- THOUGHTS FOR THE WEEK:
According to the Center for Immigration Studies, some 61 million immigrants & families comprise nearly one in five U.S. Residents, 53% of whom live in four states (California, Texas, Florida, New York), and materially impacting the apportionment of seats and power in the House of Representatives & Electoral College. The 2020 census forecast, which ostensibly included all persons residing in America, shows that immigration will be responsible for a cumulative shift of 26 House seats, of which eleven benefit California, two attributable solely to Illegal Aliens.