A Subtle Tax Increase, “The Phase Out”

Each year as we arrive in the latter stages of tax season, we are hit with a theme of the year. While the disruptive cost basis transition continues, this year has it’s own unique theme.

Phase Outs, Subtle Tax IncreasesIncome Tax

This tax season we are spying a new sneaky theme that first slowly came into sights last year, but is more prominent this year, The Phase Out. A phase out is the loss of a deduction or at least a partial loss. This year we are seeing slightly higher taxes through not an increase of our tax rates, but a lowering of some of our deductions, aka the phase out.

If you are seeing a deduction you have normally taken in years past become partially unavailable, or restricted in some way, check it twice, but most likely you are seeing a Phase Out, a not so subtle tax increase if it has you in it’s crosshairs.

Have a Great Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

 

One response to “A Subtle Tax Increase, “The Phase Out”

  1. Pingback: Year end Last Minute Tax Ideas … Tick tock … Only a few days left | $treet-¢ents

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