Category Archives: Tax Related

A Much Forgotten But Fast Growing Expense Reminder: Personal Property Taxes!

With multiple inner circle friends and clients expressing fatigue at the escalating Property Tax bill… we set off to do some research. Our most interesting findings are when we feel like we are on an island, and no one else is discussing a subject …

With very little public information on the subject of Personal Property Taxes (think Home/Car) in just a step for steppers like fashion, we turned to our investment resources for some possible clarity –

It took us a lot longer than we thought to find sources that would connect the dots of the puzzle of escalating Property Taxes, but here is what we found!

Total US Property Tax Collections 1987 to Present

US State Local Property Taxes 1988 to 2018

Total Property Tax Percentage Change Year Over Year 1987 to 2018

US State and Local Property Tax Percentage Increase 1987 to 2018

The average annual increase since 1987 is 4.8%%  Why?

Case Shiller National Home Price Index 1987 to 2018

Case Shiller Average Home Price 1987 to 2019

Oh no ….

This is an annual 3.9% growth from 1987 to present –

So asset prices have increased at a 3.9% pace over the last 30 years but taxes at 4.8%?

May not seem like much, but over time IT IS….

3.9 V 4.8 House Growth Versus Tax Growth

We do not want you to think conspiracy or other… just be aware that tax rates are growing faster than assets rates…. oddly, per our Social Security Retirement discussion, wage growth is growing much faster than inflation…leading to a better standard of living, which tax rates are more correlated with…. additionally there are certain municipalities across the country that have struggling finances and are taking more aggressive measures to shore up the coffers.

Bottom line: Property Taxes are growing at a rate MUCH faster than our assets … if you are buying an asset, especially a house, keep an eye on the Property Tax Amount!

Have a Great “Tax Growth versus Asset Growth Rate” Day!

John A. Kvale CFA, CFP

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

Q 3 2019 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 3 2019 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.

Click Here for direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page

Let’s get going!

Q 3 2019 Newsletter

Click for PDF/printable version of Newsletter

And here is your review!

Why We Write!

Here we are again:20190630_133340742_iOS

We had planned on leaving this out due to repeated appearances here in our blog and in the Newsletter – but in true “Break In” like format, as this post is completed and the video – hopefully the local wifi is strong enough for uploading … the time is spent in Austin Texas at this moment in another rain delay- the same exact place the original article was written!

Tax Talk/Review

Change Likely the New Normal

After two decades of only minor changes in the Tax Law… it was overhauled and many changes were made that were reflected in our 2018 tax returns.

This neat chart is a nice reminder of the current brackets and can be helpful in income distribution tax bracket management.
Tax Bracket Graph

Inverted Yield Curve Update

This chart featured in our Newsletter is a slightly different term comparison of the 2 year (we like the 90 day) versus the 10 year, but a wonderful historical view of inversions and recessions. We have fully inverted for over a month now and if we use this historic guide as our yardstick a recession would be in the cards mid year 2020!

JPMorgan Inverted Yield Curve History

Social Security Update3-20-19 - Invitatation to SS Info Event with Tom Clark_Page_2

We have begun a detailed review of the late spring event and it is going great. Weekly we dissect a section of Social Security Expert, Tom Clark’s presentation and give handy links to greater details and explain in bullet fashion the main points. Here is a link to the Audio on a special page here at our blog and you can also click here for a link that will pull up each complete post!

There are tons of nuances regarding Social Security, Disability, Death Benefit and Medicare decisions…we look forward to discussing many more with you as the summer weeks occur!

We hope you enjoy … talk to you near the end of Summer!

John A. Kvale CFA, CFP

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

Quarterly Estimated Tax Reminder … Payment Due Next Monday – Travels Next Week – Happy Fathers Day Weekend

For those of you that need to pay in estimated taxes, this is your friendly reminder…

Payment Due Dates
You can pay all of your estimated tax by April 15, 2019, or
in four equal amounts by the dates shown below.
1st payment …………….. April 15, 2019
2nd payment ……………. June 17, 2019
3rd payment …………….. Sept. 16, 2019
4th payment …………….. Jan. 15, 2020*

Quarterly Estimated Tax Payment Reminder

Here is the link to IRS Publication 1040 ES  – which has EVERYTHING you need to file your ES payment!

Here is the ES payment coupon due Monday June 17, 2019:

2019 Payment Voucher 2 due June 17 2019

Here is where to send the ES Payments:

2019 Where to File ES Payments


State Income Tax filers, you may also need to file a similar report as the above is for Federal Only Income Tax filers…

Break In:

At 10:40, about ten minutes after this post hits your in box, the fourteen year old will play in the Consolation Finals (5th or 6th place) see next note – Nice Father’s Day Gift!

Happy Father’s Day Weekend!


Post Tennis Travels

This week, the largest Texas Tennis Tournament of the Year occurred in a small and people-crushed into, West Texas Town (with VERY bad internet- I digress) … 984 players (not including parents) squashing themselves on courts, grocery stores, restaurants, and any place that was available… EVERYONE … present party included, GLAD TO BE THERE AS LONG AS POSSIBLE … AS IT IS WIN OR GO HOME …. next week, the family is happily off for a quick break in a quiet place before the next tournament which is more normal … a long Weekend  (summer brings the most tournaments of the year).

Always lightly tethered electronically!

Talk to you next week – thanks for your time!

Have a Great “Quarterly ES 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.


Sharpening the Saw at the Financial Planning Association Annual Convention …. Getting Closer to POOL time …

Thursday and Friday of this week were dates for the annual convention of our local Dallas/Fort Worth Financial Planning Association (FPA), the organization that makes up the Certified Financial Planning (CFP) designation….

We make great efforts to always make the event, and we did so this year …

Sharpening the Saw

Sometimes it can seem that we end up in a bubble of our own thoughts unless we get out and hear what others are saying, especially the so called “Experts” in our field….

It is nice to learn new ideas and especially nice when we hear of other “Trending Techniques” in the industry that we are already using…

Here is a neat chart from Thursday’s session that reminds us of the current income tax rates….

Tax Bracket Chart

There were over an hours worth of techniques around managing these rates … WAY more than can be explained here …. but all useful in certain situations….

With a fairly heavy week of information, we will ease your eyes and let you ride into the sunset of the weekend without further complication… we WILL bring some of this information to the forefront in the not too distant future… so your not off the hook completely…haha

Pool Time ? ALMOST!!!!

Having a totally outdoor family … and no Pool, the opening of local Pools is exciting….

It’s not here yet, but just one more week … Can’t wait !

Have a Great “Almost Pool Time” Weekend!

John A. Kvale CFA, CFP

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



Confusing Tax Form 5498 Coming to Your Mailbox if any Qualified/IRA Activities

So we all trudged through the two decades of changed tax laws, and for the most part put them behind us … at least until extension filing deadline for some….

Just as we are forgetting about Forms, notifications, and tax documents, here comes one more!

Not to worry!

Form 5498 Reminder2019 Form 5498

The late arriving Tax Form 5498 can be confusing as it arrives seemingly late, but not to worry, its’ purpose is settlement …. Here at the Form 5498 IRS website it is noted as “An Info Copy Only” meaning this form is for our information only and no action is required.

So why does this form arrive so late?

Form 5498 captures movement into IRA/Qualified accounts and since we can contribute to IRA’s until the filing date of this year, they have chosen to have the form reported to them AFTER the regular April filing date to capture as many as possible this year contributions for last year….

Getting into the weeds for a moment as an example, if you roll over a 401k into your IRA Rollover… a Form 5498 will find its way to your mailbox …. not to worry, this seemingly late form settles up with the IRS in crazy accurate fashion one year later…showing them that you did NOT take the funds personally and absolving you of any tax burden.

Bottom line – This seemingly alarmingly late form needs to be tossed in your 2019 Tax File and kept for this years taxes, when we file in April of 2020!

Have a Great “No Alarming Tax Form” Day!

John A. Kvale CFA, CFP

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

Tax Findings and thoughts from the 2018 Tax Season as we cross the finish line, finally!

Frequently our posts here act as a diary, for clarification, look back, and for possible reference in the future.

With tax season officially ending today – thank goodness – we felt like no better time than the present to pin our thoughts on what we saw this tax season.

So here we go…

2018 New Tax Law Review and thoughtsUncle Sam

Initially as we entered the tax year, we heard rumors and complaints of higher taxes – which on our first few returns, we found inaccurate.

As we carried through tax season we found that there were winners and losers and we will try to explain in greater detail for future reference for this time next year and for possible planning… for the record it way generally very hard to anticipate the winners from losers in advance as each situation seemed to have it’s own twist.

This is in general and very broad terms – as there are always exceptions, especially when dealing with taxes..

First the losers:

Single Taxpayers – With many deductions no longer allowed, simple standard deduction caused lower write offs in many cases.

Folks with heavy real estate right offs – SALT -State and Local Tax – deduction limited many – For the record clumping did not work as well as we had hoped.

Folks and heavy tax state residences – Again due to SALT deduction, we saw limits being reached frequently.

Folks that just fell under the itemized deductions due to limitations from the new tax laws – Limited deductions held many under the standard deduction.

Charitable donors – but not heavily charitable donors – standard deduction comes in play.

And the winners:

Large Families – Child credit in play here – $2k credit per child helped.

Married couples – especially those that had been filing non-itemized returns in the past-higher deduction in play here – a net gain in the higher standard deduction.

Non Itemizers – Those filing regular standard tax returns, usually found meaningful benefit.

Business owners with qualified pass  through taxes – lower tax rate at work here.

Real estate holdings that were not high property tax but possibly had meaningful interest expense – Although SALT limited much, interest expense was not limited in many cases.

So what have we learned?

Given the lower marginal tax rates in certain situation it likely makes sense to accelerate IRA distributions if one is in the appropriate asset position.

Heavy property tax real estate holdings may have limits, the SALT limit will greatly affect the deductions of such holdings.

While salt clumping – The clumping the property taxes-may not work as well, charitable deduction clumping will work very effectively but needs planning. Clumping years of charity gifting to get over the standard deductions may provide greater benefit.

In closing, the thing we learned the most –

The new tax forms and all of their crazy schedules are horrible!

The effort to go to a simplified tax return was nice, however it over complicated the details of any non-simple tax return.

We hope that in the future many of the schedules are enlarged or pulled to the front as it is very difficult to reconcile and reconcile tax returns with the current forms.

Have a Great “Last Unofficial” 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.


Tax Update – Reminder busiest wire day of the year – Friday

With a full girth of tax returns under our belt now, the general gist is there are winners and losers – but it is very difficult to pin the success or the lack of success on any one reason.

Thanks for the Thanks – Happy to Do Our JobUncle Sam

A special shout out and thank you to all of those who have thanked us for getting their tax information to them or their tax professional in an expedited manner – Our theory on this is if someone’s working on your return we want it to stay at the top of the pile, hence we try and get the documents in lightning fast fashion!

Again you are all welcome but happy to do our job and hopefully cut down on the inevitable start and stop mistake!

Wire Reminder

Speaking of taxes – the busiest wire day of the year is tax day – Certainly understand the desire to wait to the last minute – weight that option with something going wrong on the busiest day of the year!

Spring Has Sprung

Today is a Friday and it’s finally getting warm at least here in the south.

Enjoy your weekend, we will stay alert for tax questions through our electronica tether.

Don’t forget to spend time with those special in your life!

John A. Kvale CFA, CFP

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