Category Archives: Tax Related

Reminder… No mandatory RMD’s- (Required Minimum Distributions) this year … Finally, Our Most Popular Video EVER, that also is a Family Blooper – HAPPY THANKSGIVING!

After fielding several calls in the last week or so about Required Minimum Distributions (RMD’s) We wanted to remind everyone that due to our current situation all required minimum distributions have been waived for this year.

That does not mean that you cannot take funds out if you have a need or a want. This also does not cause us to have a double distribution next year, pretty much the best of both worlds, elective distribution if desired not mandatory if not wanted!

HAPPY THANKSGIVING Blooper

The most popular video ever was one that was literally almost a comedic uncut repeat attempt when the kids were much younger

Here is what they look like today…

Here is what they look like then, with your authors best attempts of trying to do a serious video – What eventually happened is an upload of all of the attempts much like you would see at the end of a movie or blooper!

Hope you enjoy likely the last year that we will show this, but we’ve said that for the last two or three years just too much fun especially given my seriousness and their lack of seriousness!

HAPPY THANKSGIVING

John A. Kvale CFA, CFP

Year End Tax Planning Thoughts – Realized Asset Tax Gains, If you’re on the Edge You Might Want to Take Them Now

With a couple of weeks of the final quarter under our belt we thought it a good time to talk about year end tax planning.

Once again much of this has come as a result of questions from you guys in the field, so thank you very much for the idea!

If you’re on the edge of taking gains on assets, strongly consider taking some this year!

Given the current level of tax rates, no matter what the political outcomes it’s likely we are at a lowest tax rate for sometime to come.

The much-needed stimulus and in our opinion perfectly OK to use, will eventually need to be chipped away at in some form or fashion,

It is very likely that we may all see higher taxes in the not too distant future both from a Federal Income Tax Level and an Asset Capital Gains level as well.

If you’re planning on selling a business, stock, asset or anything that may realize any taxable event certainly consider doing it sooner as in possibly this year, rather than later.

We are by no means making a tax statement forecast but simply looking at the odds and attempting to give ourselves the best possible longer term outcome. Please don’t recklessly go realize gains and certainly check with your Tax professional before making moves!

Have a Great “Realized Tax Gains” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

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2020 Q3 Estimated Quarterly Tax Reminder … Newsletter Pre-View …. Friday

Reminder … especially pertinent given all the changes in due dates !

ES Q 3 Quarterly Tax Estimated Payments Due

Next Tuesday, September 15, 2020 is the Due Date of Quarterly ES Payments … here is a direct link to the IRS pamphlet where you can find the coupon, instructions and of course where to mail the payment!

Newsletter Preview

With fingers crossed that current events don’t destroy the third Newsletter in a row, we are trepidly wading into a review of the events so far this year, our thoughts … and some really neat charts that we think you will like…

Here is a sample of a couple of our favorites so far:

This second chart is amazing to us …just how much horsepower is being thrown at the Global Markets!

Friday

Ahhhh… today is a Friday, heading into a big pro sports filled weekend ….

Enjoy, be safe and have a Great Friday and Weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Mysterious Tax Form Coming … The Extra Late Arriving Form 5498 !

During normal tax reporting years, just after the final push for regular Mid April filings is complete … along comes the late arriving Form 5498 in May …

This year with the extended regular filings, this mysterious tax form is making it’s way to us even later than normal!

Form 5498 – Who Get’s One and What it’s For

Form 5498 arriving any day now is the settle up for the IRS for most types of Rollovers …. it notifies the IRS that a distribution made in 2019 (yes way back in 2019) has been reinvested and is not taxable.

This form also notifies the IRS of other personal retirement plan contributions such as the SEP – Simplified Employee Pension Plan among others.

File it with you regular tax files but don’t worry that you have missed something… its for Uncle Sams use mostly!

Have a Great “Form 5498” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Congrats to the Tennis Player … Post Tax Relaxation … Friday from the Road

Long time followers know the 15 year old is serious about her tennis….

Five months of no tournaments meant lots of training (Fitness, weights, hitting, hours of coaching) but not competition…

What would it be like competing again? Any rust? Did she work hard enough during the down time? Would she be nervous? YEP on this for sure…

Monday of this week finished the first official USTA Girls age 16 state of Texas tournament in Five months …

That’s a Blue Ribbon on that First Place Finish …

Well done Sophia!

Post Tax Relaxation

The twelve year old and present party are grabbing a few days together .. in state …. in a continuation of a New Year’s Resolution of spending more time with, due to the aforementioned Tennis players dominating of time travel schedule…

We are happy the longest regular tax preparation season is behind us…

Ahhhh….today is a Friday… from the Road for a Few Days !!

Have a Great Friday and Weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

 

Fun Tax Day Animated Stats on …… Taxes by Rate and Country –

It’s finally here…

Tax Day is Today !!

The busiest wiring $$ day of the year – for obvious reasons.

The longest lines day of the year at the post office – postage must be stamped today in order not to miss the deadline!

As we wipe our brow and say goodbye to the longest regular filing season we have experienced…. a fun animated chart was in the cards from a new source, Anima Stats

Top 20 Highest Income Tax Rates by Countries (1960-2017)

These guys even got the background music perfect!

Have a Great “Tax Day”!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

It’s Finally Here … Regular Delayed Tax Day Filing this Wednesday – What is Due? Extension Form and Extended Dates

As mentioned Friday, we are almost to the regular filing tax day which has been pushed back due to our current situation…

This is your gentle reminder!

Tax Day and Items Duetax-1351881_1280

Two days from now, Wednesday July 15, 2020 most regular scheduled tax items are due –

  • Individual 1040
  • Form 1041
  • Most Trust Accounts
  • Q 1 2020 ES Estimated Taxes
  • Q 2 2020 ES Estimated Taxes
  • Non Extended SEP Filings – If you extend your return – October 15, 2020
  • IRA Contributions for 2019
  • Roth IRA Contributions for 2019
  • HSA for 2019

Note the last three items especially … this is your last chance … so be sure to double check…

If you punt and extend, remember to pay an estimated due amount or penalties may apply – and note only the SEP above will allow later contributions – NOT IRA !

Didn’t see you filing item or form?

Here is an excellent FAQ from the IRS!

No need to get too fancy … mail or pay today is fine – waiting until the VERY last minute can sometimes create problems.

Have a Great “Tax Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

 

Tax Reminder Preview … Taxes Due Next Wednesday… Friday

They may have pushed tax due dates out… but the line in the sand still stands… and it is next Wednesday….

We are feeling the heat, which is excellent…so glad to help!Uncle Sam

On Monday a more direct reminder and details….

After two longer posts this week, we will leave your eyes less strained..haha

Ahhhh… today is a Friday, heading into a mid summer weekend…

Be Safe, Have a Good Friday, and a Super Weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

April 2020 Podcast Video, Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our April 2020 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

April – 2020 Video (YouTube)

 

 

Financial Planning Tip  –

Care Act and More Care Act

Thank you all for reading and sharing Posts… we deviated from the usual M-W-F schedule due to the massive amount of information and changes associated with the Care Act… again, thanks for your kind words, sharing and your time!

April Posts

Capital Market Comments – SAME AS LAST MONTH

Unknown that will eventually be Known

Unique to this slowdown is that it is needed and self designed.

In the prior two slow downs, the economy was stretching the limits of the system and slowed with many other outside items adding to the decrease.

This event, while unknown at the moment, will be very measurable, likely more than any recent slowdown.

The speed of the slowdown may lead to the speed of the recovery.

The stimulus being put into the system is large by any measure and will eventually gain traction.

Have a Great Day – Talk to you at the end of May!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
street-cents

Federal Income Tax Filing Reminder – Tax Delay Q and A – State Income Taxes With Complications

Today was the scheduled regular Tax filing date. Thankfully the Federal Government, on March 21, 2020 announced we all have received a 90 day delay on our REGULAR Federal Income tax…

From the IRS announcement

“Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.”

If you have a refund and made less or the same in 2018 as 2019, then you can file. As a planning reminder… about 90% of the population is to receive a Recovery Rebate of $1200 + $500 per child under age 17… BUT those are phased out…

The applicable AGI phase out threshold amounts are as follows:

  • Married Joint: $150,000
  • Head of Household: $112,500
  • All Other Filers: $75,000

CARES-Act-Economic-Relief-Proposed-Taxpayers-Refundable-Tax-Credits

If you are in the phase out range and if you have not filed your 2019 return, check to see which is lower, your 2018 or 2019, and if your 2018 is lower, do not file your 2019. Conversely, if your 2019 is lower file it immediately! You likely will not have to pay until the extended deadline of July 15, 2020 (Double check with your Tax Professional!)

Back to the Regular Extension Update

This nice Q and A from Turbo Tax

  • Do I need to file an extension to file past April 15?  No, you do not need to take any action. The July 15 extension applies to all taxpayers automatically.
  • Will the extension of the tax deadline delay my tax refund? No, the IRS expects to continue to process refunds as normal but encourages all taxpayers to file now.
  • Do I have more time to contribute to my IRA? Yes, you now have until July 15, to make a 2019 contribution to your IRA.
  • Will the deadline for my state taxes also be extended? A majority of states are conforming to the new July 15 tax deadline. However, some states have different deadlines and guidance. To find out the deadline in your state, click here

States with Challenging Time Frames at this time

Most all states but the following are either non state income tax states or are following the same extension date ….(no idea why any state would not follow the rest of the country … digressing)

Hawaii July 20
Idaho June 15
Iowa July 31
Mississippi May 15
New Hampshire June 15
Virginia May 1 to file; June 1 to pay

From AICPA for more exact information.

Again … especially when dealing with the state information, this is changing quickly and may change again, so please check your respective state taxing authority.

Bottom line most have some type of relief, although the calendar complicates in certain states!

Have a Great “Updated Tax Extension Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents