Two Big New Changes Could Completely Change Your Finances In 2024

Blog December 7, 2023 By Tim

With the government targeting both unrealized losses, and unrealized gains, many Long Island property owners could find they are thrust into a dramatically different financial situation in the new year. 


You’d think that addressing both ends of this spectrum would fairly balance out for taxpayers, right? Instead, most may find that they are simply pinched even further with rising costs, and less access to credit to keep afloat. 


It is already becoming very clear that Americans are quickly running out of money. With expectations that the convergence of recent trends and policies will snowball into a new financial crisis in the new year. 


Unrealized Losses And Squeezing The Banks


New regulations aim to force banks to increase the amounts of capital they are holding, as well as making them account for unrealized losses on investments. 


If banks have to hold more of their money in capital reserves, then they have less to lend. They may have to cut back on things like mortgage lending, consumer credit card accounts, and other loans and credit. 


This means many might find their emergency lines of credit are not there to bail them out when they need them. 


Unrealized Gains: New Income Taxes To Squeeze Consumers


Another landmark supreme court case centers on the government taxing Americans on unrealized gains. Even on foreign investments. 


Normally we have historically only paid income taxes when we actually make real money and retrieve the income. 


Now imagine that this opens up the door to being taxed on things like how much the price of your home and investment properties have gone up in paper value, even if you don’t sell them. 


Even aside from these changes the overall environment appears to be setting up a year in which taxes are much higher, and income, jobs, and credit is far more scarce. This is the time to get ahead of the curve.