Finance
G-7 finance chiefs to discuss bank woes, Ukraine, emerging risks
Finance chiefs from the Group of Seven will meet Thursday for three-day talks in Niigata Prefecture, central Japan, as they aim to boost confidence in the banking sector, coordinate more closely in seeking an end to Russia’s invasion of Ukraine and tackle risks to global supply chains.
The gathering of the finance ministers and central bank governors comes at a precarious time for the global economy, as a series of U.S. regional bank failures have added to market jitters over aggressive monetary tightening by major central banks and created worries about a recession.
Japan, which holds the rotating G-7 presidency this year, is hoping that the group displays a united front in the face of challenges posed by Russia and China.
In a rare move, non-members Brazil, India, Indonesia, South Korea, Singapore and Comoro, the chair of the African Union, have been invited to join part of the G-7 meeting to discuss global challenges, including debt issues affecting low- and middle-income nations.
The COVID-19 pandemic and Russia’s unprovoked invasion of Ukraine have strengthened G-7 unity in recent years.
As the G-7, Britain, Canada, Germany, France, Italy, Japan and the United States plus the European Union are expected to underscore the need to continue depleting Moscow’s war chest through sanctions, including a price cap on Russian oil, officials said.
Sergii Marchenko, Ukraine’s Finance Minister, is expected to attend a session virtually to demonstrate the G-7’s “unwavering” support for the nation.
Following disruptions to global supply chains of critical components like semiconductors, another key G-7 topic is to make them more resilient to future risks, amid building momentum toward decarbonization to tackle climate change with green technology.
The G-7 finance chiefs will also discuss ways to ensure financial stability in the aftermath of the multiple bank failures in the United States that have roiled financial markets.
The widespread use of online banking, as well as the rise of social messaging platforms that have enabled information to spread instantly, are prompting a rethink by financial regulators.
Concerns about a potential U.S. default have left financial markets on edge, with few signs of an end to the recent deadlock over raising the country’s debt ceiling. U.S. Treasury Secretary Janet Yellen is among the participants in the G-7 talks.
The finance chiefs’ gathering will be among the last ministerial talks arranged in the lead-up to next week’s summit in Hiroshima Prefecture, western Japan. A joint statement to wrap up the three days of talks is expected on Saturday.
Finance Minister Shunichi Suzuki and new Bank of Japan Governor Kazuo Ueda will represent Japan, the summit’s host.
The G-7 has taken the view that global growth remains resilient, despite increased inflation, and is on guard against developments in the financial markets contributing to an uncertain economic outlook.
Among the G-7 nations’ central banks, the BOJ is a dovish outlier, with no immediate tightening of monetary policy in sight under the new governor. The U.S. Federal Reserve and the European Central Bank, among others, have been aggressively raising interest rates to rein in soaring inflation.
Related coverage:
Biden hints at attending G-7 summit virtually if debt issue drags on
G-7 leaders to hold 3 expanded sessions at Hiroshima summit
Japan eyes Hiroshima peace museum visit by G-7 spouses during summit
Finance
Taxes and Finance: Understanding the home gain exclusion
When is a tax planning session essential?
One of the biggest tax benefits available today is the exclusion of gains when you sell your qualified home. Here is what you need to know.
The tax benefit explained
For those who qualify, a married couple can exclude up to $500,000 ($250,000 for unmarried taxpayers) in capital gains from the sale of your principal residence. This exclusion can be taken once every two years as long as you pass two tests; a two-years out of five residency test and an ownership test before you sell the property.
Special situations can cause complications
Often tax planning is required to ensure you maximize this tax benefit. Here are some situations that require a review prior to selling your home.
Ownership and principal residency tests met using different years. As long as the two-year requirement is met for both tests you can take the deduction. It does not matter that you use different years for each test. The most common example of this occurs when you rent a home or condo and then buy it later.
Life events complicate things
Marriage, divorce, and death are common life-events that require planning to maximize the gain exclusion tax benefit. For example, you can take advantage of the full $500,000 gain exclusion after the death of a spouse, but usually only during the time you are able to file a joint tax return.
Selling a second home requires planning
While you can use the gain exclusion every two years, you need to be careful with a second home. You may be able to plan your living arrangements to make each home a primary residence during different tax years to meet the two-year requirement for both properties. This means you need to determine your primary residence each year with good record keeping in case you are audited.
Business use of your home
You will need to adjust your home basis (cost) for any business activity and depreciation of your home. This can create a depreciation recapture tax event when you sell your home.
A partial gain exemption is possible
There are exceptions to the two-year tests when certain events occur. The normal exceptions include a required move for work, health reasons, or unforeseen circumstances. Since the IRS definition of each is vague, you should review your options if you are required to move.
Record keeping matters
Be prepared to document the gain on your property and how you meet the residency and ownership tests. Please keep all documents relating to the purchase and sale of your property. Save any receipts that document improvements to your home. Also keep an accurate record to support your claim of principal residence if you own a second home.
Given the potential for tax savings, please ask for help before selling your home or vacation property.
James Angell is a Willits based Certified Public Accountant. His office is located at 461 S. Main St. and he can be reached at 707-459-4205.
Finance
What are the best ways to finance excellent hotel studies? – Part 2
While the hospitality industry is renowned for being a veritable social ladder, where someone without a degree can start out as a dishwasher before working their way up to become a hotel manager, education remains the quickest route to positions of great responsibility. Future talents are turning to the best hotel schools to train and join this rich industry. However, the cost of excellent studies can be daunting for many students. This is a financial barrier that schools, authorities and even the students themselves are trying to overcome through various financing solutions.
To (re)discover part 1 of this analysis, which looks at the cost of student life in 2024, click here. A wide range of funding options Grants, funding and support While such studies may seem out of reach for many students because of their cost, there are many ways of financing them. Whether it’s the…
Finance
Rana Abbasova, Adams aide whose home was raided, is cooperating with feds’ campaign finance probe
An aide to Mayor Adams whose home was raided amid an FBI probe into his 2021 campaign is cooperating with federal authorities, a source with knowledge of the matter said Monday.
The aide, Rana Abbasova, is one of several people whose residence was raided as the feds probe allegations that the Turkish government funneled illegal cash into Adams’ campaign through straw donors.
The mayor has not been accused of any wrongdoing and strongly denies any suggestion of impropriety in connection with the investigation.
It’s unclear what Abbasova may have discussed with the feds, though her cooperation pertains to the general allegation of illegal Turkish government-financed contributions to the mayor’s campaign, according to The New York Times, which first reported her cooperation. Her lawyer Rachel Maimin declined to comment.
Brendan McGuire, the mayor’s former chief counsel at City Hall who now represents him and his 2021 campaign in the FBI investigation, confirmed Abbasova’s cooperation, but said it’s “not a new or meaningful development.”
Abbasova, the director of protocol in Adams’ International Affairs Office and the mayor’s unofficial liaison to the local Turkish community, was put on unpaid leave days after her home was raided in November, according to two sources with knowledge of the matter. She remains on unpaid leave, and her position at City Hall has not been filled, they added.
The sources spoke on condition of anonymity due to the sensitive nature of the Adams campaign probe, which burst into the headlines when the home of the mayor’s chief campaign fundraiser, Brianna Suggs, was raided in November. Days later, Adams had his own electronic devices seized by the feds.
Abbasova received three tickets in New Jersey in January for offenses linked to driving a for-hire vehicle, the Daily News previously reported.
While she’s been on unpaid leave, another Adams aide targeted by the feds in a separate matter went on paid sick leave after her Bronx homes were raided in February. That aide, Winnie Greco, has since returned to work at City Hall, receiving a raise earlier this month.
McGuire noted the mayor’s administration reported to investigators late last year that Abbasova had engaged in “improper conduct.” Sources confirmed at the time that the conduct in question was Abbasova instructing other Adams staffers to delete text messages they’d exchanged with her.
“It is our understanding that Ms. Abbasova has been talking to investigators since her improper conduct was reported by the administration in November,” McGuire said in a Monday night statement.
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