By Jill Nagy
Get your life in order, think about possible tax changes and, above all, don’t panic. That is the advice of area financial advisors for surviving in the age of COVID-19.
“It’s never been more important to attend to your estate plan,” said Jeff Vahanian of Vahanian & Associates in Saratoga Springs. “We are very aggressive about this. People have had to adjust their behavior in many ways. I hope they refocus on things that matter.”
He urges his clients to have a health care proxy, naming someone to make medical decisions if they are unable to; a living will, to indicate their preferences in connection with medical care; and a power of attorney, appointing someone to make decisions in non-medical matters if they are unable to do so.
“In times like these, they are very critical. Nobody should be without them,” he said.
Vahanian said people with young children to should decide who they want to raise them if they are unable to do so.
Business Report: When Are Meals, Entertainment Deductible?

By Joanna Piscitella, CPA
The Internal Revenue Service has issued final regulations on the business expense deduction for meals and entertainment following changes made by the 2017 Tax Cuts and Jobs Act (TCJA).
The Treasury Department and the IRS did not receive any requests to speak at a public hearing on the proposed regulations but they had received written and electronic comments in response to the proposed regulations.
These written comments were incorporated into the new regulations.
As a reminder, the 2017 TCJA generally eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. However, taxpayers may still deduct business expenses related to food and beverages if certain requirements are met (Typically limited to 50 percent of the expenditure).
Business Report: Focus On What You Can Control

BY Mickey Orta
The top two questions that financial professionals have been hearing from customers are: “What’s going to happen to my investments and financial plans depending on the results of the presidential election?” and “When will things get back to normal post-COVID?”
While these questions can’t be answered directly, that doesn’t mean we have to sit tight without taking any action.
It’s probably safe to say that 2020 has not unfolded in a way that any of us could have predicted. The COVID-19 pandemic upended everyone’s plans—financially, and in general—starting in March. A busy and heavily contested election season added to the feeling of heading into the unknown.
Whether you’re looking at financial planning for 2021 from the perspective of a business or as an individual, the pandemic isn’t going away and so uncertainty is likely to continue.
To help reduce some stress, take a look at what is in your control and focus on those elements. Financial planning has many components that are squarely within your control.
Business Report: Your Lease Amid COVID-19 Pandemic

BY Jessica M. Blanchette
Commercial tenants: Remember that extensive and wholly uninteresting document entitled “lease agreement” that you scanned, signed, then shoved into a file folder and never thought of again?
Well, it’s making a comeback.
If you are one of the many businesses struggling to pay your rent due to the economic effects of the COVID-19 pandemic, your lease agreement should be one of the first resources to which you turn for guidance.
Like all contracts, commercial leases typically include the standard who, what, where, when, and why provisions of an agreement between a landlord and tenant. But they generally go beyond that as well and many leases, especially long-term ones, also contain lengthy provisions outlining the rights, obligations, and, perhaps most importantly, protections for both landlords and tenants.
Business Report: Businesses Should Take To The Offensive

By John Flory III
It is time for businesses to play offense against cyber criminals: For the last 200 days the business world has faced unimaginable challenges. These challenges have forced us to stray from our comfort zone, modify our existing tried and true policies as we fought to survive. Going forward we have to anticipate the unexpected and be prepared for anything.
The strength of the American Economy comes from the resilient nature of its’ businesses. Solving for these challenges just makes them stronger.
The speed at which a “work from home” adaptation occurred and the laxing of policies to account for the transition, while closing the doors, has opened an enormous number of windows. While we have been learning how to be “operable”, cyber criminals have been ramping up their capabilities to exploit this new opportunity exposed to them. Where email phishing is still the primary way criminals are stealing from us, their tactics are changing, and we need to take an offensive approach to defending our livelihoods and our homes.
Companies That Pay Estimated Taxes Can Find Ways To Avoid Penalties, Limit Exposure

Courtesy Hedley & Co. Certified Public Accountants.
By Christine Graf
As 2019 draws to a close, local tax professionals advise individuals who pay estimated quarterly taxes to review their annual income in order to determine if they will owe a penalty to the IRS.
Estimated tax payments are paid by business owners who operate partnerships, LLCs, sole proprietorships, and S corporations. Business income from these pass-through tax entities passes through to business owners on their personal income tax returns.
Those who operate pass-through tax entities are required to make estimated quarterly tax payments to pay income tax and self-employment tax on income that is not subject to withholding.
The IRS requires estimated quarterly tax payment to be filed by anyone who expects to owe at least $1,000 in federal income taxes. This year’s fourth quarter estimated tax payments are due on Jan. 15. Estimated taxes must also be paid quarterly to New York state.
According to Kevin Hedley, CPA, of Hedley & Co. CPA’s in Clifton Park, business owners who are in an underpayment penalty situation should consider making contributions to a retirement plan.
Business Report: Diversified Approach To Retirement Savings

Provided By Sherry Finkel MurphY Associate Wealth Management Advisor
For most people, saving for retirement means making steady contributions to a 401(k) until they hit a specific goal. However, a broader approach to saving and investing offers more options for building that nest egg.
Keep in mind that where you put your money is as important as how much you save. That’s because each savings strategy has tax considerations that can impact how much you’ll have when it’s time to take the money out. By keeping a mix of tax-free and tax-deferred sources of income, you’ll have the flexibility to withdraw funds strategically during retirement, based on tax and market implications.
While tax-qualified retirement plans like 401(k)s and 403(b)s are the most common retirement savings plans, they shouldn’t be your only option. These plans give you the ability to make pretax contributions that reduce your taxable income today. However, you’ll have to pay taxes on those dollars when you make withdrawals. This can greatly reduce the amount of money you’ll have to spend when you’re retired.
Business Report: End-Of-Year Financial Moves

By Robert Snell
We’ve still got a couple of months until 2019 draws to a close, but it’s not too early to make some end-of-the-year financial moves. In fact, it may be a good idea to take some of these steps sooner rather than later.
Here are a few suggestions:
• Boost your 401(k) contributions. Like many people, you might not usually contribute the maximum amount to your 401(k), which, in 2019 is $19,000, or $25,000 if you’re 50 or older. Ask your employer if you can increase your 401(k) contributions in 2019, and if you receive a bonus before the year ends, you may be able to use that toward your 401(k), too.
• Add to your IRA. You have until April 15, 2020, to contribute to your IRA for the 2019 tax year, but the more you can put in now and over the next few months, the less you’ll have to come up with in a hurry at the filing deadline. For 2019, you can put up to $6,000 in your IRA, or $7,000 if you’re 50 or older.
Business Report: Qualified Opportunity Zones

By Scott D. Shimick
As part of the 2017 Tax Cuts and Jobs Act, Congress added Sections 1400Z-1 and 1400Z-2 to the Internal Revenue Code, creating the Qualified Opportunity Zone tax benefits. Owing in part to confusion over the provisions, the Qualified Opportunity Zone tax benefits have not been as widely publicized and discussed as most of the other provisions of the TCJA.
However, the IRS has recently issued proposed regulations and a Revenue Ruling that have brought clarity and interest to the Qualified Opportunity Zones.
Qualified opportunity zone benefits.
Congress’s purpose in creating the Qualified Opportunity Zone tax incentives was to promote private sector investment in economically distressed communities. Investors in the opportunity zones are eligible for the deferral of capital gains and possible reductions in total tax liability.
Investors in a Qualified Opportunity Zone Fund (QOZ Fund) can defer an unlimited amount of their capital gains. This deferral allows the investor to push back the recognition of capital gains to the earlier of (1) Dec. 31, 2026 and (2) the sale or exchange of the QOZ Fund investment.
Advisers Say Investors Should Not Panic Even When Stock Market Shows Signs Of Dropping

©2018 Saratoga Photographer.com
By Jill Nagy
Sit still. Hold tight. Don’t panic. That sums up the advice of some financial advisors to investors feeling a bit seasick in a volatile market.
From 1980 to the late October 2018 market drop, there have been 36 corrections in which the market fell 10 percent or more, said Jeff Vahanian of Vahanian & Associates in Saratoga Springs. In each case, the market recovered and continued moving upward.
The worst thing an investor can do is to sell when the market drops and then miss the upswing that is likely to follow, he said.
Tim Pehl of Luther Forest Wealth Advisors agreed.
“We try to keep our clients on the straight and narrow,” Pehl said. His advice to nervous clients: “Stick to your plan.”
“People with good rules, good discipline, and good habits do well,” noted Vahanian.