by Charles Amodio, CPA,CFF, MAFF, MBA
Partner at FAZ Forensics

Loss of earning capacity damages are typical damages in a personal injury claim involving severe injury. If an injury affects the Plaintiff’s future career advancement, they may seek loss of earning capacity damages. Due to the speculative nature of a lost earning capacity claim, the Plaintiff must prove the value of the damages with reasonable certainty in litigation. This burden of proof makes the services of forensic accounting experts vital. FAZ Forensics works with attorneys and litigation firms nationwide to provide calculations and expert witness testimony for damages such as loss of earning capacity.

What is Loss of Future Earning Capacity?

Lost earning capacity is a general damage category that compensates for the Plaintiff’s ability to earn money in the future. Lost earning capacity considers what a Plaintiff could have earned had their injury never occurred. A severe injury can drastically impact a Plaintiff’s lifetime earning potential. Severe injuries can alter a career, cause lost opportunities for pay raises, promotions, and new job offers.

The Difference Between Lost Earning Capacity and Lost Earnings

It’s important to clarify the distinction between “lost earning capacity” and “lost earnings” in the context of an economic damages assessment. Lost earning capacity is the reduction in a person’s ability to receive future earnings over their lifetime due to an injury or wrongful act. The concept is forward-looking and speculative, considering the potential future earnings that the individual could have made if not for the incident. The assessment involves analyzing the individual’s skills, education, experience, and the impact of the injury on their future work life. Factors such as potential promotions, career advancements, and inflation are also considered.

Lost earnings pertain to the actual lost income due to an injury or wrongful act. This is a historical calculation, focusing on the income the individual would have earned had the incident not occurred. Lost earnings are calculated from the time of the incident to the present and include wages, salaries, bonuses, and other forms of compensation that the individual would have received. This calculation is more concrete and is based on the individual’s past earnings history, without speculation about future potential income.

Formula for Calculating Loss of Earning Capacity

The speculative nature of lost earning capacity damages means they are not measurable in exact dollar figures. The court requires a plaintiff to provide evidence proving the reasonable value of their lost earning capacity.

A forensic accounting expert calculates this reasonable value using the claimant’s work-life expectancy, projected future earnings, cost of living, and other data. A vocational expert can then support these assumptions. They will offer professional opinions about the person’s ability to continue their career and other work they may or may not be able to perform.

Lost Earning Capacity Claim

Consider Nick, a 40-year-old human resources director earning $100,000 annually with a work-life expectancy of 25 more years. As a result of a severe injury, his earning capacity is diminished, and he is now expected to earn $60,000 annually. Inserting the lost annual income of $40,000 into the formula above, the expert forensic accountant hired by Nick’s personal injury attorney determines that his lost earning capacity due to the injury should permit him to recover past and future lost earnings worth $1,000,000.

Factors Involved in Calculating Earning Capacity

A forensic accounting expert must consider several influencing factors that affect earning capacity. These considerations include:

• Profession & Career
• Current wages
• Market value
• Historical career performance
• Skills, Talents, & Abilities
• Education, Licenses, Certifications
• Work history
• Location

Profession & Career

Understanding the claimant’s profession and career is essential as each profession has a unique growth curve with specific compensation levels. Additionally, the forensic accountant must consider the projected industry performance over the claimant’s work-life.  For Nick, his profession as a human resource director has a moderate growth curve with potential for increased earnings. 

Current Wages

Current wages include any actual earnings the claimant was receiving before the accident. These are the same figures used to calculate lost wages, including the plaintiff’s salary and benefits.  Nick’s current wages of $100,000 are the baseline for calculating his lost earnings and factor significantly into the lost earning capacity. The $40,000 annual difference in earnings post-injury directly impacts the loss of earning capacity calculation.

Market Value

Forensic accountants must also consider the market value of the profession which includes future income and benefits throughout the plaintiff’s work life. The forensic accountant will determine the market value of the claimant’s career using The Department of Labor’s Bureau of Labor Statistics. The market value of a human resource director like Nick is expected to increase over time. 

Historic Career Performance

Evaluating historic career performance is crucial. The expert forensic can use past raises, bonuses, and promotions data to accurately predict future lost earnings. If Nick had a history of receiving a 5% annual raise or annual bonuses, this would be factored into the calculation.    

Skills, Talents, Abilities

The claimant’s skills, talents, and abilities significantly influence their future earning capacity. The more skills, talent, and abilities a claimant has, the more likely they will have a successful career. That success correlates to a higher potential future earning capacity. Nick’s skills and talents in human resource management increase his potential for higher future earnings. 

Education, Licenses, Certifications

A claimant’s education and professional qualifications also play an essential role. Education, professional training, and opportunities for career growth all share a strong correlation. Therefore, the expert forensic must consider these when calculating lost earning capacity damages.  Nick’s advanced degree and certifications in human resources further enhance his earning capacity. 

Work History

The consistency of the claimant’s work history is vital for understanding their future earning potential. Higher levels of consistency correlate to higher earning potential. The number of past jobs, the time gaps between them, and the amount of time in their current position are critical indicators of consistency.  Nick’s stable work history, with long tenures at each job, supports a higher future earning capacity.

Location

The claimant’s geographical location also plays a significant role in the calculations. If the claimant lives in an urban location with a booming economy, they have a high opportunity cost. Conversely, their exposure to opportunities is much lower if they live in a rural area or an area with less economic opportunities. On top of that, specific industries perform better in one location compared to another. 

Loss of Earning Capacity for a Self-Employed Person

Proving lost earning capacity for a self-employed claimant can be difficult. The primary determining factor is the age and earnings of the claimant’s business. Suppose they provide financial records to prove a history of steady revenues. In that case, a vocational expert can evaluate the claimant’s reduced earning capacity after the injury. With that information, the forensic accountant can calculate lost earning capacity. If the company is new or revenues are inconsistent, proving lost income and loss of earning capacity becomes more complex. However, that does not mean lost earning capacity cannot be proven.

Loss of Earning Capacity for a Person with No Work History

The fact that a plaintiff has no work history doesn’t stop them from claiming lost earning capacity damages. This scenario is common in children and people under the age of 20. Working with a vocational expert, economic experts can survey the labor market to determine the employment opportunities available to the injured claimant. They can compare this data to the claimant’s pre-injury education and career aspirations. This allows them to determine a reasonable figure for loss of earning capacity damages.

Hire a Forensic Accountant to Calculate Loss of Earnings Capacity

When determining a reasonable value for loss of earning capacity damages, the services provided by forensic accountants are crucial. FAZ Forensics has provided forensic accounting, valuation and litigation support services to attorneys for more than 25 years. In addition, we have provided expert witness testimony in multiple state and federal courtrooms.   

By: Amanda Blanton, ARCC Vice President, Marketing & Communications

Photos Provided

It was a jam-packed room at The Queensbury Hotel as almost 250 guests gathered to celebrate 44 nominees in 7 categories and learn of the winners at the annual ARCC Business Awards in early October. Held annually, the ARCC Business Awards are a culmination of months of hard work, completed by a group of volunteers and the ARCC staff. The result is a beautiful breakfast ceremony, celebrating the many accomplishments of our business community.

The nomination period began in early May of this year, resulting in 44 businesses & nonprofits receiving nominations.

“This was definitely a record year for nominations,” said ARCC President & CEO Tricia Rogers. “It just warms my heart to see this type of response from our community.”

Throughout the entire summer the Business Awards Nomination Committee, a group of volunteers, met with and interviewed each nominee. After all interviews were completed, they met to discuss highlights from each interview and then score the nominees. 

“We are so grateful for this committee and the time and care they put into the process,” said Rogers. “Plus, it is so incredible to take a deeper dive into what these businesses and nonprofits accomplish day-to-day.”

One of the benefits to attending the breakfast ceremony is getting to hear a brief synopsis focused on what each business and nonprofit nominee does. This snapshot often features little known facts, or interesting accomplishments of the nominated businesses. The winners are then announced for each respective category. The ARCC, along with almost 250 attendees, were thrilled to celebrate the winners of the 2024 Business Awards:

Large Nonprofit of the Year: Behavioral Health Services North (BHSN), celebrating 150 years of service, focuses on bringing treatment, rehabilitation and support to families experiencing mental health challenges in the North Country.

Small Nonprofit of the Year: Alliance180, whose founder just received a Congressional Gold Medal for his service in Vietnam, is an organization helping Veterans, first responders, and frontline healthcare workers heal from trauma through a truly unique equine experience.

Steven M. Sutton Small Business of the Year: Hunt Companies, Inc., a second-generation family-run general contracting business that persevered through trials and setbacks, and continued investing in their employees resulting in a strong, successful small business.

Large Business of the Year: Arnoff Moving & Storage, celebrating 100 years as a multi-generational run and operated business, began with one moving truck and has since expanded to nearly 200 trucks and vans, and more than 650,000 square feet of versatile storage space.

Professional Business of the Year: Irongate Family Practice, a private, physician-owned, full-service family practice that was established in 1966 in Glens Falls. Their team of physicians and support staff exemplify the highest standards of professionalism, compassion and dedication to their patients and community.

Rookie Business of the Year: Kopf Property Management began with a pickup truck and a bag of tools and has impressively grown in three years into a property management company with an office location, 5 employees, and a portfolio of 157+ units in four counties.

Community Champion: The Sagamore Resort, giving back to their community in ways that may not be obvious, from providing free use of their rec center to students and donating to Bolton Central School functions, to making considerable donations to the Bolton Landing Heat your Neighbor program assisting with heating costs for their neighbors.

The community really showed up for the 2024 ARCC Business Awards, as you could feel a sense of gratitude and unity in the Adirondack Ballroom of The Queensbury Hotel that morning. A big thank you to the community for coming out to show their support for these businesses. And we look forward to next year’s celebration!

By: Amanda Graves

Photos Provided

Robert (Bob) Bullock’s classroom is painted in school colors, inspirational quotes line the walls, and, today, it’s filled with students eager to learn. This all sounds pretty conventional of a college classroom— the only difference is his long walk through security and the corrections officers who are always present. As an adjunct business professor for SUNY Adirondack (ADK), Bob teaches classes to people serving time in the Washington Correctional Facility. Despite the unusual circumstances of his students, his classes are the same as those taught at any other school, and his students excel in their studies. 

Bob studied economic geography at SUNY Potsdam, earning his bachelor’s degree. After graduating, he started to think about a career and the military was extremely appealing to him. “Every generation of my family going back to the war of 1812 had been a commissioned military officer either in the British Army or in the United States Army,” Bob shared, “So being in the military going back to the war of 1812 was an important part of my family legacy.” His father and grandfather had both graduated from West Point, and Bob decided he wanted to continue his family’s history of service. After making his decision to join, he talked with some recruiters and decided that the Air Force was the right fit for him. “It really sounded like something that was tailor made for me and they weren’t wrong,” Bob explained, “I was looking for a career that was going to give me a great deal of responsibility and an opportunity to lead or to command.” 

In 1979, Bob graduated as a lieutenant from the Air Force Officers Training School in San Antonio, Texas. After graduating, he worked as a public affairs officer; working with reporters, government officials, and community officials to help them understand the missions of his organizations. He was first stationed at Hill Air Force Base in Ogden, Utah where he worked on the 388th Fighter Wing for two years. He was then transferred to Sumter, South Carolina where he was assigned to a 363rd tactical fighter wing. He also spent time in Saudi Arabia where he was assigned to the Airborne Warning and Control Systems Program (AWACS). This program provided military support to the government of Saudi Arabia during the Iran-Iraq War, protecting the oil refineries. When he returned to America, he went into the Individual Ready Reserve (IRR), meaning he was no longer in active duty, but could be called upon in the future should the military need him. Every year, he went to the 109th Airlift Wing to register for the IRR. On one of these occasions, he found himself talking to a few officials that were looking for a public affairs officer. Missing service, Bob returned in 1994 and was commissioned as a Captain. He was assigned to the U.S. Arctic research program. He also worked as the public affairs officer for the New York Air National Guard, the largest state Air National Guard program. After his 20 years of service, Bob retired as a lieutenant colonel. “I had the most amazing career and I think that the greatest testimony to the quality of one’s service is your interest and belief in the mission of the military after you leave it and also the friendships that you’ve made along the way,” he said. 

During his civilian career, Bob had several jobs, the first being the Director of Institutional Advancement at the Franklin D. Roosevelt Presidential Library. He then became the President of the NYS Archives Partnership Trust. A few years later, he became the Deputy Director for the Nelson A. Rockefeller Institute of Government. He has also worked as the Chief Operating Officer for the Make-A-Wish foundation. After his civilian career, Bob found himself in the position to retire. But a call from John Jablonski, the vice president of academic affairs for SUNY Adirondack, would change that. John asked if he would be interested in teaching a few classes. Bob initially began teaching two classes, one of which was at Washington Correctional Facility. “I loved that program because I had done teaching at McGregor Correctional Facility,” explained Bob, “I enjoyed my work at McGregor so I kind of became a prison specialist and now teach six separate courses over the course of the year in our associate degree program.” His work and experience earned him the title of prison education coordinator for SUNY ADK, where he continues to help lead and educate those behind bars. His courses cover a variety of different topics including management, marketing, consumer behavior, human resources management, small business management, social media, advertising, and promotion. He also manages the freshman seminar which is designed to help those just beginning their academic career adjust to the school environment. 

Despite their situation, Bob’s students receive the same high quality education, and are given the opportunity to earn a degree like any other college student. “The different part is just where you are,” explained Bob, “I have to go through four different gates to actually get onto the facility and at the same time I’m surrounded by corrections officers who are there to ensure my safety.” However, SUNY ADK’s program focuses on providing the necessary classroom environment and resources to create a typical college setting. “What we endeavor to do is make this as normal a college experience as it can possibly be,” explained Bob. With a collaborative teaching style, Bob enjoys hearing what his students think about different topics, and encourages them to participate in discussions about what they are learning. “For me, it’s having that class where all of a sudden you are getting as much back from the students as you’re giving them,” he shared. Recently, he earned the President’s Award for Excellence in Teaching based on feedback that the chair of the business division had received from Bob’s students and how much he cares about what he teaches.

Outside of the classroom Bob works part-time as a polo announcer for the Farmington Polo Club in Farmington, Connecticut. He also loves reading business books and staying up to date on what is occurring in the world and how he can incorporate it into his classes. Continuing with his passion for business, Bob heads SUNY ADK’s program Start-Up ADK. This program provides training to entrepreneurs looking to start their own business. He also enjoys activities like golf, bilking, and tennis. “I just try to stay in good shape because I would like to be teaching for many years to come,” said Bob. 

Desperate and despairing pet parents turn to Alfie’s Rescue when their dog goes missing.

By: Megin Potter

Photos Provided

Jen Atchinson is on a mission to locate lost dogs. After joining in the community-wide search for Alfie, a miniature Australian shepherd who went missing from Glens Falls two years ago, she got to know the dog’s owners, who were visiting from Pennsylvania, and, when Alfie was finally found, experience the joy of a family reunited. 

Since then, Jen, a retired State of New York employee, and Stacy Berry, co-founders of Alfie’s Rescue, have located 40 missing dogs. 

“I go out as necessary. Sometimes there are no lost dogs in the area, but sometimes, I’m kept pretty busy,” said Jen, who, while searching for a missing dog named Scooby, drove the more than two and a half hours to Malone, near the Canadian border, to help find him. “If I know a dog is in danger or has been lost for a long time, I am willing to travel,” she said. 

Lost and Alone

Alfie’s Rescue does everything they can to recover a lost dog. While sometimes dogs are found within hours, it has also taken Jen more than 45 days to locate a missing dog.  Rising at 6 am, and out searching all day (with only brief breaks) until well after dark, she is doing what local agencies and rescue organizations don’t have the time and resources to do, and what pet parents often can’t. 

When they can’t find their beloved dog and are left on their own, the dog’s family sometimes exacerbates the situation. Franticly yelling the dog’s name, or moving toward a skittish dog, often scares him, causing him to run. 

“If the owner is out there, screaming, the dog is going to automatically think, ‘I’m in trouble’,” said Jen. “That’s why it’s extremely important to kneel down on the ground and talk to a lost dog like you would to a child,” she said.

Hiding in Plain Sight

Stray dogs are nomadic animals, moving to find the human food sources they rely on and the small animals that eat it, so, in addition to a perimeter search for prints, Jen looks for signs, like a garbage bag that has been ripped into, indicating that a dog may have recently visited an area. 

When Loki, a boxer from Broad Albin, ran away from home, his Mom and Dad were heartbroken, said Jen. After trying to help the distraught parents over the phone, there was an agonizing month of no sightings. That’s when Jen and Jill, a tracker from Bethlehem, scoured aerial maps, and picked up his trail. After five days with no luck, the team finally caught sight of him.

“He was the most emaciated dog I’ve ever seen,” said Jen. Although boxers have a strong jaw and powerful bite, their flat, square muzzle makes it difficult for them to pick up scents and find food. 

“When we went out to look, Jill and I almost walked right over him. He was extremely thin, exhausted, and sound asleep. I thought, this poor dog is going to die right in front of us, but then he picked up his head and ran away. I felt awful,” she said. 

When Patience Pairs with Cunning 

Next, Jen and Jill sprayed food with liquid smoke and grilled bacon in the middle of the woods to try to lure him in. 

“Dogs’ noses are 40 times more sensitive than ours, so we rely on that to be the guiding light to bring them to the food bowl,” she said. After strategically placing food and a trap (out of the reach of neighborhood cats and other wildlife) Jen and Jill set up their cellular-enabled trail cameras and went to a nearby restaurant to wait. 

The atmosphere was tense and quiet. 

Finally, Loki emerged, attracted to the food in the trap, and they knew this was it, he’d soon be going home. “It was incredible!” said Jen. 

Rescue from a Crazy World

Dogs go missing for a variety of different reasons, but a stray dog wandering the streets on his own can be more than just a nuisance. Without a pack helping them to hunt, on their own, lost dogs won’t last long. Traffic has increased tremendously since the days when dogs were left to run free. Today, we expect dog owners to be responsible for their pets. Stray dogs can contract a contagious disease, like mange (which is common in foxes), or develop aggressive behavior and bite a child. 

When a dog is dumped, Jen works with local sheriff’s offices and animal control to get the abandoned animal to a shelter and rehomed. The increasing value of certain dog breeds has led to them being stolen (even right off a front porch!) Dogs are also taken to be used as bait animals for dog fighting, which is still a huge problem in Albany, said Jen. 

Posting a reward for your missing dog can also be problematic because if someone is holding the dog and sees a reward offered, they may be incentivized to keep the dog longer (waiting to return the animal until the reward is raised). 

“You just don’t know. It’s a crazy world out there, nowadays. In a matter of minutes, your dog can be lost, taken, or something worse,” said Jen. 

Where a little goes a long way…

The community is very good at posting on social media, said Jen, but when a pet goes missing, it can cost Alfie’s Rescue more than $1,000 per dog in food, gas, and travel expenses to recover them.  

All of these services are provided to pet owners for FREE, leaving Alfie’s Rescue to pay for all of their expenses out-of-pocket The subscription to the handful of trail cameras they use is $200/month. They’d like to upgrade to a thermal imaging drone to help aid in the search and become a certified non-profit organization.

Alfie’s Rescue has started a Go Fund Me page. They have raised $718 toward their goal of $10,000. To donate, go to  https://www.gofundme.com/f/alfies-rescue

To find out more, follow Alfie’s Rescue on Facebook and go to https://alfiesrescue.com

A farm survival guide for perilous times

By: Megin Potter

Photos by Michael Nelson

The last century has focused on controlling and streamlining food systems. The result? Today, fewer farms, producing higher yields, and earning increased profits. 

Shifting production away from small farms nurturing natural, complex ecosystems however, has come at a cost. The lack of diversification makes the whole system vulnerable to problems. 

Fifty years ago, in the fall of 1974, Dan Wilson was just entering his freshman year at Granville Central School. His family had just purchased a 350-acre farm in Upstate New York, and moving here was a bit of a shock, he said. 

“It felt exciting, adventurous. My dad was a corporate executive, so it was a complete change of pace for us.” 

Before moving to Washington County, Dan’s family lived in Southern Connecticut and his dad was the head of Research and Development at industry giant, General Foods Corporation. 

The farm’s previous owners, the Hicks family, were very welcoming however, and had already established a successful U-pick farm on the property (the oldest of its kind in New York State). 

Surviving Unpredictable Circumstances 

In the 119 years that Hicks Orchard has been providing families with the opportunity to pick their own produce, they have learned how to capitalize on diversity. 

“Northern Washington County is hilly, so you have these very small farms, and the only way for them to survive is to do something unique by creating value-added products and processes that create a brand experience. That’s the way to ensure the survivability of small farms,” said Dan. 

Since he began running Hicks Orchard in 1990, it has attracted an average of 30,000 people annually, primarily from late summer to early November. 

Sometimes, that season is even shorter, like last year, when a late spring freeze resulted in Hicks Orchard losing 60% of their apple crop. 

Keeping it Fresh

To survive, farming, like other industries, must weather recessions, pandemics, and a changing climate. Agritourism across the country has experienced significant revenue growth in the last 30 years, but relies on luring urbanites and families out to the country for a wholesome experience. 

When there’s no pickable produce or unpleasant weather, agritourists might not make the trek out to the farm at all. Unlike other types of farming, the you-pick model includes the added costs of risk management, insurance, and providing customer comfort. Which is why one of the first things Dan did was convert the farm’s bakery building into public restrooms. 

As the old packing barn grew into a vibrant, year-round farm store, the farm hosted numerous parties and a variety of events. In addition to being a farmer preparing for future shocks and stressors, Dan is also akin to a stage manager creating a platform for people to have a memorable experience. 

Expanding Off-Site

To help insulate Hicks Orchard from the variability of the weather, they began making apple cider donuts. Donuts are “weatherproof” and available year-round. They are also the backbone of Hicks Orchard’s sales at their Shirt Factory store in Glens Falls. 

Hicks Orchard became acquainted with The Shirt Factory after appearing as a vendor at their annual Holiday Open House. During the warmer months, they started serving the refreshingly simple fresh apple cider slushies (and other farm fresh delights) at The Shirt Factory’s Thursday Market and Food Truck Corral. Now, the enticing aroma of apples can be found inside the sprawling Shirt Factory building at the Hicks Orchard Farm Store and Slyboro Cider House Tasting Room.

Open there every weekend, they offer the same great apples, donuts, and fresh-pressed cider available at the farm, along with homemade fudge and other foods from local producers. 

“The vast majority of our customers are from the Glens Falls area, so it’s a good opportunity for us and for our customers,” said Dan. 

Extending the Season

Before expanding off-site, in 2007, Dan strengthened the farm’s already solid foundation in tourism with the addition of the Slyboro Cider House and Tasting Room in a beautifully renovated 1935 barn. 

Although Hicks Orchard earns 80% of their revenue in the six weeks from Labor Day to November, the addition of the Slyboro Cider House and product line (which includes sparkling, still, and iced hard ciders as well as an apple brandy) attracts a different demographic and helps buffer the farm from variabilities caused by fluctuating weather. 

One of the earliest modern, licensed hard cider producers in the state, Hicks Orchard began experimenting with which apple varieties would make the best cider in what they called their “mad scientist” barn.  

“it’s a chance to be fun and creative while adding diversity to the farm. It keeps us on people’s radar and it’s an opportunity for us to keep staff members on, year-round,” said Dan. 

Although they hire 55 people during the peak of the season, just seven carry Hicks Orchard through the rest of the year, including retail managers Michelle Wilson and Kim O’Leary.

The Apple Doesn’t Fall Far from the Tree

Working with Cornell Cooperative Extension, Hicks Orchard has implemented diverse plantings, from adding vineyard-like apple trees that reach peak productivity faster in a more compact space, to experimenting with U-pick blueberries, raspberries, and strawberries.

They currently grow 20 varieties of apples, some especially well-suited to cider, like the English Kingston Black, as well as the traditional heritage varieties like Northern Spy, and the new favorite, Honeycrisp.

As the son of a food scientist, Dan said he thinks if his parents could see how far the farm has come in the past 50 years, that it would make them proud.

“I think they’d be thrilled that we’re making and launching new products,” he said. 

For more information on Hicks Orchard events and products, find them on Facebook, Instagram, and at https://www.hicksorchard.com

By: Amanda Graves

Photos by Michael Nelson

After several years of creating the perfect trio, the Greenwood Hoff team is thrilled to launch their own brand. Stemming off of their parent company, Cetera Investors, Matthew Greenwood, Lorissa Hoff, and Dana Cafaro are eager to share their combined 45 years of experience with their clients and help them navigate the world of financial planning. Between their passion for their field and dedication to being an active member within the community, they can’t wait to see where this journey takes them. 

Matthew began his career after graduating from Siena College in 1995 and earning a bachelor’s degree in finance.  Originally, he worked for First Investors that later was changed to Foresters Financial. Throughout his career, he has consistently tried to improve the lives of those around him by setting them up for success. “The idea of always wanting to help families and people plan for their future is where I started my career and still am today,” he shared. In 2008, he decided to shift from working independently to creating a team. Dana joined Matthew as the registered practice operation coordinator. She has a bachelor’s degree in economics and business from the University at Albany, holds Series 6, 63, 66, and 7 licenses, and a life insurance license. Additionally, Dana is a Notary Public in New York State. Her expertise and experience helped grow the company, which expanded to include educational seminars, client appreciation nights, and charitable events. In 2018, the team grew again and became complete with the addition of Lorissa. During her time as a student at SUNY Oneonta, she completed an internship with Foresters Financial where she met Matthew. After earning her bachelor’s degree in economics and finance, she accepted a full-time position with the firm. In 2019, Foresters Financial was acquired by Cetera Investors, and their team was completed. 

Each person brings a unique skillset to the group, which has allowed the Greenwood Hoff team to provide the best services to their clients. All three value the people they help and want to see them succeed with their financial goals. Matthew shared that, “It’s not how many can we get this week, it’s how can we help the most this week.” Dana assists Matthew and Lorissa by overseeing daily business operations, and managing both event planning and marketing efforts. Her role is crucial in providing every client with exceptional service and maintaining strong communication between the team. Planning for the future, Lorissa is focused on building relationships with every client, reassuring them that they are set for years to come. “It’s not just a pass off— if and when Matt retires, they already have that relationship,” said Lorissa.  

This commitment to forming a close relationship with their clients is what differentiates Greenwood Hoff from the Cetera brand. All three members of the team wanted their firm to be an active part of the community, and they saw an opportunity when Lorissa got married and changed her name.  “It just gave us the opportunity more than just changing her last name on paperwork to really rebrand and really emphasize who we are within the Cetera structure and that is the Greenwood Hoff Wealth Management. It allowed us to be more personalized, create our own brand, just a refresh,” explained Matthew.  Dana continued to explain how they wanted to emphasize, “Our more personalized approach versus the generic Cetera brand. That’s not us.” Since their start, the Greenwood Hoff team has been working endlessly to not only help their clients, but the community in which they live. They actively participate in countless charities including: Toys for Tots, the Regional Food Bank of Northeastern New York, and the Ronald McDonald House. “Community giveback is an important part of who we are and speaks to what we like to do,” explained Matthew. Overall, Dana, Matthew, and Lorissa have built a hard-working team that is focused on doing right by their clients, and helping their community thrive. For more information about the Greenwood Hoff Wealth Management firm visit their website: https://www.teamgreenwood.ceterainvestors.com/. 

By: Brian Stidd, CPA, CVA, Owner of Stidd CPA

As 2025 approaches, tax planning is more important than ever. With recent changes in tax laws, inflationary pressures, and evolving financial circumstances, being proactive about your taxes can save you significant money. Whether you’re an individual taxpayer or a business owner, adopting smart strategies before year-end can make a big difference when tax season rolls around. Below are some key tax strategies for the balance of 2024 that will help you minimize your tax liability and make the most of the current tax landscape.

1. Maximize Retirement Contributions

Contributing to retirement accounts is one of the most effective ways to reduce taxable income while securing your financial future. Here are the key contribution limits for 2024:

– 401(k) Contributions: The contribution limit for 401(k) plans is $23,000 for 2024, with an additional catch-up contribution of $7,500 for individuals aged 50 or older. Contributions to traditional 401(k) plans are made pre-tax, reducing your taxable income.

– IRA Contributions: For 2024, the maximum contribution to an Individual Retirement Account (IRA) is $7,000, with a $1,000 catch-up contribution for those aged 50 and older. Contributions to a traditional IRA may be tax-deductible, depending on your income and whether you or your spouse is covered by an employer-sponsored retirement plan.

– SEP and SIMPLE IRAs: For self-employed individuals and small business owners, contributing to a Simplified Employee Pension (SEP) IRA or a Savings Incentive Match Plan for Employees (SIMPLE) IRA can significantly reduce taxable income. SEP IRA contributions can be as high as 25% of your compensation, up to a maximum of $69,000.

2. Leverage Health Savings Accounts (HSAs)

If you’re enrolled in a high-deductible health plan (HDHP), contributing to a Health Savings Account (HSA) is a tax-efficient strategy. HSAs offer a triple tax benefit: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

– For 2024, the HSA contribution limit is $4,150 for individuals and $8,300 for families, with an additional $1,000 catch-up contribution for individuals aged 55 or older.

– HSAs are an excellent way to save for future healthcare expenses while lowering your taxable income. Contributions can be made up until the tax-filing deadline (April 15, 2025) to count toward your 2024 taxes.

3. Take Advantage of Capital Gains and Loss Harvesting

Capital gains tax planning is crucial for investors with taxable investment accounts. If you’ve experienced significant gains in your portfolio, consider these strategies:

– Harvest Capital Gains: If your income places you in the 0% capital gains tax bracket (for single filers with income up to $44,625 or married filers with income up to $89,250), consider selling investments with gains to avoid paying federal taxes on those gains.

– Harvest Capital Losses: If you’ve experienced losses in your investments, selling those assets can help offset capital gains. This strategy, known as tax-loss harvesting, allows you to offset an unlimited amount of gains and deduct up to $3,000 of excess losses against other income. Losses exceeding this amount can be carried forward to future tax years.

4. Charitable Contributions

Making charitable donations is not only a way to give back but also a powerful tax-saving tool. Under current law, you can deduct charitable donations if you itemize your deductions. However, there are ways to enhance the tax benefits of charitable giving:

-Bunching Donations: If your itemized deductions do not exceed the standard deduction ($14,600 for individuals and $29,200 for married couples in 2024), consider bunching several years’ worth of charitable donations into a single year. This can push your deductions above the standard deduction threshold, allowing you to benefit from itemizing.

– Donor-Advised Funds: If you want to make a large charitable contribution now but spread the donations to specific charities over time, consider contributing to a donor-advised fund (DAF). You can take the tax deduction in the year you contribute to the DAF, even if the money is not distributed to charities until later.

5. Review Tax Credits and Deductions

Certain tax credits and deductions can significantly reduce your tax bill. Make sure you’re taking full advantage of the following:

-Child Tax Credit (CTC): For 2024, the Child Tax Credit is $2,000 per qualifying child under the age of 17. The credit begins to phase out for single filers with income over $200,000 and joint filers with income over $400,000.

-Earned Income Tax Credit (EITC): The EITC is a refundable credit for low- and moderate-income earners. For 2024, the maximum EITC is $7,830 for a family with three or more qualifying children.

-Energy Efficiency Credits: If you plan to make energy-efficient improvements to your home, such as installing solar panels, energy-efficient windows, or insulation, you may be eligible for the Residential Clean Energy Credit. This credit allows you to claim up to 30% of the cost of qualifying home improvements through 2032.

-Education Credits: If you’re paying for higher education expenses, the American Opportunity Tax Credit (AOTC) provides up to $2,500 per student for qualified education expenses. The Lifetime Learning Credit offers up to $2,000 per tax return for education expenses at eligible institutions.

6. Consider Estate and Gift Tax Planning

If you’re concerned about estate taxes or want to pass on wealth to family members, 2024 offers opportunities to gift assets while reducing your taxable estate. The annual gift tax exclusion is $18,000 per recipient. You can gift this amount to as many individuals as you like without triggering any gift tax or affecting your lifetime estate and gift tax exemption (set at $13.61 million in 2024).

7. Use Tax-Deferred Investment Accounts

If you’ve maxed out your 401(k) and IRA contributions, consider tax-deferred investment vehicles, such as 529 Plans for education savings or tax-deferred annuities. These accounts allow your investments to grow without being taxed until funds are withdrawn, potentially lowering your overall tax burden.

8. Roth IRA Conversions

If you expect your income to be lower in 2024 or foresee higher taxes in the future, consider converting a portion of your traditional IRA to a Roth IRA. Although you’ll pay taxes on the amount converted now, future withdrawals from the Roth IRA are tax-free, provided you meet certain conditions. This strategy is particularly useful if you expect to be in a higher tax bracket later or want to leave tax-free income to heirs.

9. Plan for Changes in Tax Laws

While many provisions from the Tax Cuts and Jobs Act (TCJA) are still in effect, some may expire or change in the coming years. It’s essential to stay updated on potential legislative changes that could impact your tax planning. Working closely with a CPA can help you navigate these uncertainties and optimize your tax strategies for future years.

Conclusion

The tax landscape in 2024 presents several opportunities for taxpayers to reduce their liabilities and maximize savings. By strategically contributing to retirement accounts, leveraging tax credits, utilizing charitable giving, and considering capital gains planning, you can minimize the taxes you owe and keep more of your hard-earned money. Consulting with a CPA is the best way to ensure you’re taking full advantage of these tax-saving opportunities and staying compliant with IRS regulations.

If you have any questions or would like personalized advice, contact your CPA to discuss the best tax strategies for your specific situation.

Brian Stidd has nearly 20 years of experience in both public accounting and
the private sector. His experience in both public and private sectors gives
him a unique ability to assist businesses. Brian specializes in business and
individual tax planning, advisory and preparation as well as general business
accounting and advisory.
To learn more or get in touch, visit stiddcpa.com