Our Weekend Word

Buy or Lease

Ah, the age-old question. For years I’ve gone back and forth over this and, finally, having done both now, feel like I have a decent sense of when each option is appropriate.

Use Test

With all the home selling that’s been going on there is a little-known tax rule to help you figure out if you’ll owe any capital gains on your house that may have massively appreciated in the past 2 years.

This particular rule is especially helpful to know for people who may be moving to a second property or may have moved in somewhere else for a while before selling their home.

The Long and Short of Gains and Losses

When markets get crazy it can be comforting to find certainty, and for this we look to… taxes? Yep, that’s right, the most certain thing in our whole financial system.

401(k) Loan Pitfalls

Taking a loan from your 401(k) can be tempting. You put all this money in it, and it’s just sitting there staring at you while you struggle through affording your house, car and maybe a vacation every once in a while. Then you find out you can take a loan from your retirement plan, and hey, by the way, you pay yourself the interest. That doesn’t sound so bad. Certainly, better than taking out a personal loan or putting something on a credit card and paying the bank right, especially at only 4.25% interest right now. Well, not always.

Recession or Not

Yesterday first quarter GDP numbers surprised many when they posed a -1.4% mark, indicating that the economy had actually contracted instead of expanding. This was pretty far off from consensus views that the economy would grow by 1.5% that quarter.

Does this mean that we’re going into a recession? Not necessarily.

Lost and Found

In the course of our hectic lives, it’s not all that unusual for people to lose track of some things. Sometimes it’s their car keys, other times important dates, and still other times it can be an old stock position or small bank account.

Fortunately for us, our kind state of Pennsylvania has a system to keep track of any wayward assets that may have gotten buried in the file cabinet. Those unattended accounts can fall into the jurisdiction of Unclaimed Property laws.

Enhancing Security

It is no secret that over the past week Russian businesses have been hit with stiff international sanctions to cripple the Russian economy and dissuade further aggression towards Ukraine. Russia has made threats of its own in response that you have undoubtedly seen on the news.

We want you to know that Commonwealth is taking steps to help us stay protected from possible security threats and any exposure to sanctioned Russian companies.

Behind the Curtain

It’s the day after Russia launched a full-scale invasion of Ukraine and the Dow Is up almost 2%. Confused? We don’t blame you.

Be Prepared for 2022!

Here is the updated information you should take note of for 2022!

Tax Documents

It is 2022 and we all know what that means… tax time!  So we wanted to take the opportunity to detail 2021’s tax documents and their disbursement dates.