-3.1 C
Sofia
Sunday, January 23, 2022

No Hope For Student Loan Forgiveness; Crypto Taxes

LOS ANGELES, CA – NOVEMBER 19: University of California Los Angeles (UCLA) students Andrea Flores … [+] (L) and Kendall Brown (R) and other UCLA students and supporters demonstrate outside the UC Board of Regents meeting where members voted to approve a 32 percent tuition hike next year on November 19, 2009 in Los Angeles, California. Undergraduate fees for students at the California university system would be increasing by about $2,500. It is the second day that demonstrators, including students from other UC campuses, have gathered to try to dissuade the board from approving the proposed increase. Massive cuts to balance the state budget have squeezed education funds in California. (Photo by David McNew/Getty Images)


Getty Images

This is a preview of Sound Money, Forbes’ free weekly newsletter about pressing issues that matter to your financial well-being: personal finance, investing, taxes and retirement. Click here to get it delivered to your inbox on Thursdays.

Hope Is Lost For Student Loan Forgiveness, Not For Warren

Hope springs eternal, but it shouldn’t. White House Press Secretary Jen Psaki confirmed to reporters during a press briefing that the Biden administration won’t extend student loan relief—and the student loan payment pause will end January 31, 2022. Here are some of the highlights from her comments. But former presidential candidate Elizabeth Warren is continuing her crusadeto slash Americans’ student loan debt. “Through the decades, the cost of higher ed has increasingly been shifted away from taxpayers and on to families,” she said in an interview with the publication Inside Higher Ed. “Families that can afford to send their kid to college—and that kid can graduate debt free—have moved their next generation forward faster and further than families that don’t have those resources.”

Crypto Taxation

Congress and the IRS hope to scoop up enormous tax dollars with the new crypto reporting requirements. Two new sets of rules are scheduled to take effect December 31, 2023. One set requires brokers reporting on Form 1099-B, and the other involves a form—similar to the one required for cash transactions in excess of $10,000—that has potential criminal liability. Here are the details of these new rules and how they’ll be enforced.

Not all is grim when it comes to crypto tax planning. While recognizing a gain might seem like the only option available to crypto investors, a unique tax planning opportunity is available: the ability to use your crypto holdings to donate to charity. As crypto becomes commonplace in investment portfolios, more donor advised funds (DAFs) and charities are accepting these holdings.

There are some new developments this year surrounding the tax deduction of hobby losses—meaning any loss incurred while a taxpayer conducts a business that the IRS considers a hobby. If you’re planning for a potential hobby loss audit or facing one, here’s what you need to know.

Alternative Bank In Brazil Mints New Billionaires

Uber has left investors underwhelmed, to say the least. Two years since its public debut the stock is still below its IPO price of $45 but a turnaround could be on the horizon. CEO, Dara Khosrowshahi (who previously led Expedia

EXPE
) has big plans for the ride share company that could send the stock 50% higher.

Brazil’s Nubank went public last week and minted a new female billionaire in the process. Shares of the digital bank rose 15% in their debut, making cofounder Cristina Junqueira’s stake worth $1.3 billion. “In a country like Brazil, where there’s so much pain in accessing financial services, we’re like kids in a candy store. We want [to offer] everything,” she told Forbes. The bank isn’t profitable just yet but investors are betting it’s just a matter of time.

Unsure how to get into the cryptocurrency game? You don’t need to own bitcoin to get started but you should understand the basics of the universe of crypto assets. In case you missed last week’s letter, please check out our primer for new investors and some important questions to ask before making your first crypto investment.

Novel Graphic: More Price Hikes Coming To An Aisle Near You

Inflation


Bank of America

Source: Bank of America Global Research

Plan For Long-Term Care Now…

Self-directed IRAs are becoming more popular. In general, custodians of IRAs limit investments to publicly listed stocks, bonds, mutual funds and exchange-traded funds. However, IRAs can also hold real estate, mortgages, small business interests, hedge funds and more, which is where so-called self-directed IRAs come in. Check out the benefits and risks around this type of retirement account.

Long-term care may seem like a far-off problem you don’t have to worry about now. But it’s best to start planning ahead for senior care and to think where you would receive help if you need it and how much it would cost you. A new study by Seniorly ranked the states in order of assisted living affordability. Based on an average savings rate of 7.5% and each state’s median income, it found that it could take up to 13.6 years for a New Mexico resident to save enough to pay for just one year of assisted living, but only 7.2 years for a Utah resident to save for that care. ”

Helping Caregivers Boost The Economy

Rate hikes are imminent. The Federal Reserve is speeding up its bond-buying program and will likely initiate the first hike soon after. Fed chair Jerome Powell has been criticized for being behind on the inflation curve but he expects surging prices to pull back by the end of 2022.

The Senate on Tuesday passed a measure to raise the debt ceiling by $2.5 trillion, authorizing enough additional borrowing to fund critical government services for at least another year and clearing the way for Democrats to work on passing their nearly $2 trillion climate change and social spending package (the Build Back Better bill), which faces an uncertain fate in Congress given opposition from a few moderate Senate Democrats.

A substantial number of working-age women either quit their jobs or scale back hours to care for parents, spouses or other family members. The congressional proposal to increase federal funding for Medicaid’s home and community-based (HCBS) long-term care program, which is part of the House-passed BBB bill, would likely benefit the U.S. economy, by freeing these caregivers up to return to paid work. Republicans say BBB would be a drag on the economy. But independent analysis suggests the home care provisions, at least, would produce an overall benefit. ”

Sign up here for Sound Money.

Michael Maren
Former marine biologist who likes to spend as much time in the tropics as possible, due to a horrible time I once had in Alaska. Brrrr.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles