April 2020
The Great Toilet Paper Wipeout of 2020

Coronavirus has turned millions of Americans who used to laugh at the doomsday preppers on National Geographic into converts. Your neighborhood supermarket is working overtime to keep shelves stocked as panicked shoppers rush to settle in for stay-at-home orders. And the first item to disappear was...(checks notes)...toilet paper. Your grocery store aisle is probably still bare, and even Amazon ran out. But why? Is it because, as some psychologists say, bringing home the sheer bulk of a jumbo pack gives shoppers a sense of control in uncertain times? Or something more nefarious?

The answer will be a disappointment to conspiracy theory fans. (Speaking of which, Epstein didn’t kill himself.) The toilet paper market is divided into two parts. There’s residential paper — the soft, plush stuff those smarmy bears advertise on TV. (Apparently, they don’t all do it in the woods.) And there’s commercial paper — scratchy rolls the size of truck tires or, even worse, those uselessly tiny folded squares you find in disgusting gas station “rest” rooms. With all the “business” we’re doing at home, we’ve simply upset the usual balance of supply and demand.

Now, if you were to sit down and draw a Venn diagram with circles representing “toilet paper” and “taxes,” you probably wouldn’t expect there to be much overlap. But there is, and it has to do with the trees that the toilet paper (and tax forms, for that matter) come from.

It turns out trees don’t just grow on trees. You have to plant them, manage them, protect them, and harvest them. That process takes at least 10-20 years, and sometimes 40-50. So the tax code gives you plenty of breaks to encourage such long-term investment. Naturally, you can deduct your day-to-day operating expenses. Your sales will be taxed at lower long-term capital gain rates so long as you own your stand for more than one year. And you can take a special “depletion deduction” for standing timber you buy or inherit that breaks out a “basis” in the trees from the rest of the property.

Toilet paper farmers (OK, “timber producers”) can also profit from going green. Trees sequester carbon, which helps combat climate change. Growing trees can help you earn and sell carbon credits. These are especially valuable for new forests, sustainably-managed forests, and timber for long-lived wood products like houses and furniture (as opposed to cheap pulpwood for paper or pallets). You can also donate land-use rights for valuable charitable deductions, including “working forest conservation easements” that let you keep profiting from harvesting timber on your land.

Timber producers get one final break that uses the time value of money to shrink tax bills. It’s an advanced strategy, sometimes called a “monetized installment sale,” that lets you sell a capital asset like a business or appreciated real estate and defer the tax for 30 years. Ordinarily, if the accumulated balance of payments owed to you tops $5 million, you have to pay interest on the unpaid tax. But that doesn’t apply to agricultural products. So timber producers, including giants like Office Max, have used it to defer tax on sales of up to $1.47 billion.

Here’s hoping you have plenty of toilet paper stocked up to carry you through this crisis. But this is no time to flush your long-term tax plan down the toilet. In fact, tax planning, as part of your financial defense, is more important now than it was just a few short months ago. So count on us to serve as your financial first responder!
Taxpayers and the Stimulus Check
 
The majority of Americans will receive an economic impact payment that’s based on their income and the filing status on their 2019 tax return. If you haven’t filed your 2019 taxes, your 2018 return will be used to calculate the amount you’ll receive.

Single or married filing separate
  • If your adjusted gross income is below $75,000, you’ll receive the full $1,200. You will also receive $500 for each child under the age of 17 you claim on your taxes.
  • If your adjusted gross income is above $75,000, you’ll receive an amount that will be reduced by $5 for every $100 in adjusted gross income above $75,000.
  • If your adjusted gross income is more than $99,000 and you don’t claim any children under the age of 17, you won’t receive an economic impact payment.

Head of household
  • If your adjusted gross income is below $112,500, you’ll receive the full $1,200. You will also receive $500 for each child under the age of 17 you claim on your taxes.
  • If your adjusted gross income is between $112,500 and $136,500, you’ll receive an amount that will be reduced by $5 for every $100 in adjusted gross income above $112,500.
  • If your adjusted gross income is more than $136,500 and you don’t claim any children under the age of 17, you won’t receive an economic impact payment.

Married filing jointly
  • If your adjusted gross income is less than $150,000, you’ll receive the full $2,400. You will also receive $500 for each child under the age of 17 you claim on your taxes.
  • If your adjusted gross income is above $150,000, you’ll receive an amount that will be reduced $5 for every $100 in adjusted gross income above $150,000
  • If your adjusted gross income is more than $198,000 and you don’t claim any children under the age of 17, you won’t receive an economic impact payment.

If you don’t typically file taxes because you’re not required to based on your income level, the IRS launched a web portal where Americans who did not file a tax return in 2018 or 2019 can submit
basic personal information to the IRS so that they can receive payments.

Also, if your 2019 adjusted gross income was less than $69,000, you may be able to find one or more online tools to file your taxes for free. Review each company's offer to make sure you qualify for a free federal return. Some companies offer free state tax returns, but others may charge a fee.

There are a few additional cases in which you may not receive an economic impact payment, including if someone claims you as a dependent on their taxes, you have a non-resident alien status,
or you’re filing on behalf of estates or trusts.

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Powered by Plants

Plant-based meals have increased in popularity over the years, but for those who might be skeptical about how to meet their daily nutritional needs, especially protein, read on to learn more. But one quick note before you do: this information isn't a substitute for medical advice. Be sure to consult your health provider and registered dietitian before making alterations to your diet.
 
 Some of the best options for plant-based protein include:

  • Soy products. Tofu, tempeh, soy milk, and edamame are all great options, and they're rich in unsaturated fats, vitamins, and minerals.
  • Legumes. Beans, chickpeas, lentils, and peanuts are packed with protein, high in magnesium and other micronutrients, and full of fiber.
  • Nuts and seeds. Almonds, pumpkin seeds, chia seeds - just to name a few.
  • Some whole grains. Quinoa, amaranth, and teff are all good choices.
  • Wheat gluten. If you can tolerate gluten, seitan can be a fantastic substitute for meat. 

Now that you have the raw ingredients, look for recipe ideas on sites like Pinterest. You might even discover your next favorite meal. 

Tip adapted from MedicalNewsToday.com
Seared Scallops

Ingredients: 

  • 2 Tbsp. extra virgin olive oil
  • 1¼ lbs. scallops, fresh
  • 3 Tbsp. unsalted butter, cubed
  • 1½ Tbsp garlic, minced
  • Salt and pepper, to taste
  • ¼ cup broth or dry sherry
  • 2 Tbsp. lemon juice
  • ¼ cup parsley, chopped

Directions: 

  1. Remove side muscle from scallops, if attached.
  2. Pat dry with paper towels.
  3. Heat oil over medium-high heat until sizzling.
  4. Add scallops in batches without overcrowding.
  5. Season with salt and pepper and cook until lightly browned on each side, about 2 to 3 minutes. 
  6. Transfer seared scallops to plate.
  7. In the same pan, melt 2 Tbsp. of butter, mixing with browned leftovers from scallops.
  8. Add garlic and cook for one minute.
  9. Pour in broth/sherry and simmer for 2 minutes.
  10. Add remaining butter and lemon juice, then stir.
  11. Remove pan from heat, return the scallops and gently toss in butter mixture.
  12. Garnish with parsley and serve over rice, pasta, or steamed vegetables.

Recipe adapted from cafedelites.com
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