Welcome to our monthly Economic, Capital Market, and Financial Planning tip of the month.
This months Special Tax Financial Planning Tip of the month is not one, but two tips that may save you tax dollars before year end !
For those new to our writings, we touch on the most pertinent Financial “stuff” along with a video of my mug that has even more specialized details of the latest month as well as this post.
Ok…let’s go!
VIDEO
YouTube Direct Link
Clump or Push those property taxes
- If you are just under the standard deduction for itemizing, consider clumping your property taxes
- If you had a very big year of income and may have phase outs of deductions, consider pushing those property taxes into another year
In our clumping or pushing post, here we discussed in great detail a neat technique to maximize your property tax itemization write offs. Now is a good time to pull out last year’s tax return and review your options — we will be glad to help if you have any questions!
Roth Conversion to Offset Active Losses
- Flatten your loss – not lose it
- Possibly freely convert your taxable IRA into a Roth
- Future appreciation in your Roth will be without taxes – tax-free withdrawals too
In our Roth Conversion post we discussed in great detail a possible flattening of your income and losses should you find yourself in this situation – this is a complicated, but rewarding technique – if applicable!
Give us a call if you have any confusion/questions! Do not try any of these techniques without first visiting with you professional advisor!
The Bounce back
Never go all in or all out !
This graph from our Monthly video last month:
Seemed silly to just watch our hard earned funds slip — and slip !
Fast forward to the end of October — The Great Bounce !
Just another reason to NOT watch this on a monthly or even quarterly time frame — decades is more appropriate!
Have a Great Day!
John A. Kvale CFA, CFP
