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