🚗 Auto Payment Deliquencies are Bananas!

Hello Everyone,

People aren't just missing their car payments, they are trying to give back the keys.

I'm not taking about a few missed payments. I'm talking about people ghosting their auto payments like a bad Tinder date.

This isn't just a blip, this is a blinking red light on the dashboard of the economy. Business lending has dried up. Credit card debt just hit an all-time high. Housing market? Flatter than a pancake.

Do you know how bad it's got to be for someone to give back their car?

Hint: the last time it was this bad was the "Lehman Brothers" end-of-days.

📉 Auto loan delinquencies are at their highest rate in over a decade.​
📈 Subprime borrowers are defaulting again like it's 2008.​
🚗 Voluntary repossessions are quietly surging (gulp, people are literally giving their cars back.)

On the brighterside, repo men aren't unemployed. But they are eyeing your $7k-underwater Subaru.

IRS wants to let you know what a TIP is

Fo' Realz (because some people are trying to make TIPS out of things that aren't.)

Here are the 5 things you need to know:

💸 You can now deduct up to $25,000 in qualified tips
​ ↳ But only if you work in an occupation that “customarily and regularly receives tips”
↳ Also, no deduction if you make too much $$$.

📋 The IRS released a list of ~68 qualifying occupations​
↳ Servers, bartenders, barbers, nail techs = yes.
↳ Consultants, lawyers, influencers = no.
↳ The greatest CPA on earth = LOL, also no 😡 (I checked the list).

💼 High earners, beware
​ ↳ Deduction phases out starting at $150k (single) or $300k (married).
↳ So, if you’re a tipped 🍾 bottle girl making $250k... congrats, but no deduction.

🚫 Not all tips count​
↳ The TIP must be voluntary, and
↳ Must be paid in cash or cash-equivalent (cash, check, credit card, etc.)
↳ Auto-gratuities = Nope.
↳ Digital assets like crypto? Nope (the ghost of Gensler lives)

🕰️ Effective 2025, but planning starts now​
↳ Track your tips. Know your job classification.
↳ Employers will need to tweak reporting & withholding.

​

🏠 Housing Corner

Interest rates dropped some more, which means "Mr. Transatory" is free-styling.

Here's a quick list of this week housing stats:
​
🏠 Mortgage rates: 6.34% (down another 12 bps)
📈 Inventory: 860,219 homes (up around 14k homes)
📉 Price reductions? Up 41.5% (same)
💰 Median list price? $447,500 (same-ish)
🕰️ Days on market? 110 (same-ish)

But there is one thing that J-Pow did say (when you read between the lines):"I got no idea what's really going on anymore".

I love that for him ❤️.

Market Highlights

Market is mixed this week ~ S&P 500 $6,664 (+0.64%) ~ NASDAQ $22,631(+1.22%) ~ BTC 114,727 (-0.57%) ~ GOLD 3,724 (+0.20%) Yo' Nasdaq, what you doing over there? ​

Gigachad Stock of the Week ~ Intel (19.23%) (NVIDIA invested $5B in the dying chip maker)

Look, I know things have been looking gloomy lately.

But be thankful that you never spent $2.8M for a digital picture of a rock.

(and if you did happen to do that, look at that upside: even though you may now be homeless, at least you still have a one-of-a-kind rock wallpaper for your iphone background.)

❤️

Romeo Razi, CPA ​Taxedright.com​

​

113 Cherry St #92768, Seattle, WA 98104-2205
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