Category Archives: Tax Related

Medicare Part B Means Testing New Thresholds/ Surcharges for 2018

In our coming Q1 Newsletter we have a terrific detailed review of the background of Medicare, the newer means testing and what to expect in 2018.

In timely fashion, thanks to the nice work of a noted studious professional in our industry, Michael Kitces … the following chart shows the income thresholds and surcharges to take effect in 2018.

 

img_0967

These resource thresholds have been lowered dramatically, scooping in more families than in past years. Again, full discussion coming in our Q1 Newsletter.

If you are on Medicare, take a moment to scan these numbers, it worth our time!

Bottom line, a higher income year for a joint couple could result in a $503 (A means surcharge of $369) monthly Part B premium EACH … eeek !

We will discuss planning ideas to help alleviate this and also what to do if you incorrectly may have been targeted for this type of surcharge premium!

All about timing and control of income!

Have a great “Medicare Controlled Surcharge” Day!

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
www.street-cents.com

Tax Talk – Newsletter Medicare Article Preview – ITF Orange Bowl Tennis!

So we had a pretty busy week of tax talk.

As mentioned in our posts this week as we near the end of the year, we focused heavily on taxes because the path is short for our April of next year settle up of 2017 taxes.

Expect more tax time, reminders, and tax planning posts as we finish 2017 out. We are still held hostage by the possible changes of tax system, but we have hope since Congress is out of session in a week or so, we will have a plan that we can begin scrutinizing.

In all likelihood any plan will likely begin at the earliest in January of next year making this year end tax planning the same as the last few years.

Medicare preview Article

We are beginning our Q1 2018 Newsletter and will have a detailed Medicare article as it relates to income limitations and the premium adjustments along with super neat ideas to help you save money. We hope you will find it very interesting as we have had continuous questions and confusion over the last several years. We plan on bringing a few small condensed nuggets of information over the next few weeks as we close out the year since Medicare costs and reform, relate to our tax planning for next year.

ITF Orange Bowl TournamentOrange Bowl Logo

Sophia has been accepted to  her first ITF (International Tennis Federation) Orange Bowl tennis Tournament which starts play on Sunday. In true Pro format, one loss and you are outta there!

This will leave me out of town the first couple days of next week at least … hopefully longer. Fingers crossed and thank goodness for our best friend “Technology” !

Have a Great Friday!

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
www.street-cents.com

 

Harvesting Tax Losses/Gains (Clients)

Can you tell it is tax time? 

Lot’s of tax posts from now until the end of the year … just as a heads up!

As the year nears end, tax harvesting begins.

Tax Losses/Gainstax-468440__340

Good tax planning most of the time means neither showing big losses or certainly big gains. While never an exact science, appropriate planning helps surprises in April!

Losses, under current tax laws are restricted to $3k deductions on investments such as stocks and bonds (Active investments.) Larger losses are suspended and then pulled forward in future years.

Sales and an immediate repurchase are a neat way to realize/step up in basis gains and offset losses.

Sales of a loss and careful re-investment will realize a loss (Wash sales rules prevent the immediate repurchase of the same security for loss realization – Gains are not held captive to this rule for obvious reasons.)

Capital Gains are distributed by many packaged products such as indexes and funds near the end of the year in most cases. Many of these gains are available in advance due to a November year end for many packaged investments, helping with planning now.

Bottom line … you may see a few transactions as Donald “The Brain” does his tax magic!

Have a Great “Tax Harvesting” Day!

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
www.street-cents.com

To clump or not to clump …. Property tax double payments in one year! Possible New Tax Plan Update

Tis the season for property tax payments for many across the country and most certainly here in the south, Texas. Wait just a second before paying that tax payment!

Break In – Possible New Tax Plan

We are very aware of the new tax plan being talked about and candidly the doubling of the standard deduction, and possible property tax cap deduction ($10k annual max) if actually passed may make this strategy less efficient. Our problem is time is running out to make our decision and we have no formal tax plan.

We are sending this post out under current tax laws, but acknowledge major tax overhaul MAY change the effectiveness.

To Clump or not to ClumpUncle Sam

Each year near the end of the tax year we like to remind folks that one of the few tax bills (and deductions for that matter) that we have total control of still is our property tax payments …. By paying two property tax payments in the same year, there may be more productive uses of funds.

  • Just under the standard deduction? – Check if doubling the payment in one year would move into a deductibility mode
  • Higher/Lower Income across major thresholds – If you have a HUGE income year your property tax payment will likely be phased out. If Uncle Sam is going to see little or none of you this year, it may be wise to hold that property tax payment until next year
  • High/Low Charitable/Donations year – Much the same as above –
  • Expecting something different in the next year – Think it out, you have control for once with this payment/deduction!

Reach out to us if you need help brainstorming…. that’s our job!

We expect to continue our tax related reminders as the year nears end, but we are being held hostage by the possible changes … December 15th marks the end of session for congress … a last minute passage will really hold our feet to the fire for analysis ! Bring it on, better late than never!

Have a Great “More Productive Write Off” 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.
www.jkfinancialinc.com
www.street-cents.com

 

November 2017 Podcast Video, Financial Planning and Capital Market Update- By John Kvale

Here is our November 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.

Enjoy!

November 2017 Video

 Thank You Holiday Party Goers!

arboretum-after-hours-800x800

Financial Planning Tip(s)-

RMD – Required Minimum Distribution Reminder

In our post here this month, we reminded all of those with birthdays between 7-1-46 and 6-30-47 that have the unique option of deferring their first mandatory RMD taxable distribution to next year, but if you do that will mean you need to take two distributions in the same year.

Considerations:

  • Higher/Lower Income
  • Bigger/Smaller Expenses
  • More/Less Donations

The first year is the only time we get this option, all the future years are mandatory with not option.

Capital Market Comments

A lot of positive indicators – Markets taking notice

It appears the US and Global Economies are finally making a synched recovery. Capital Markets are taking notice.

As we mentioned here, Unemployment rate hit a very low 4.1%

11-1-17 Unemployment rate 10 year trailing

This time, International Markets have wind in their sails as well….

MSCI Global Index

11-30-17 EFA Global

See you on the other side of a New Year !

Happy Fall Season!

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
www.street-cents.com

Is Your Birthday between 7-1-46 and 6-30-47? If so you have an important decision! RMD – Required Minimum Distribution – Delay or Not?

According to current law, the IRS mandates RMD’s (Required Minimum Distributions) from your qualified account by April 1 of the year following age 70.5.

RMD Delay First YearUncle Sam

Given the above IRS requirement, it is possible to delay your first RMD until April 1 of the following year, once you reach the 70.5 threshold.

If your Birthday as of the year 2017 is between 7-1-46 and 6-30-47 YOU CAN delay your initial mandated RMD, however by doing this, you will have two RMD’s in 2018 tax year.

  • Higher/Lower Income
  • Bigger/Smaller Expenses
  • More/Less Donations

These are a few items to consider when delaying or taking that initial RMD.

Feel free to reach out to us if you have any questions!

After this decision … the IRS makes it easy, each year take your RMD and pay the taxes, only on the first RMD, is the delay allowed!

Have a great “Smart Tax Delay” Day!

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
www.street-cents.com

Tax Reform Comments from the Road …

As mentioned last week, the road is calling and this time the internet connections are struggling due to the location. Returning mid-next week so short posts until.

Hold the Horses on Tax Reform TalkUncle Sam

Even from a weak internet, cell, and wifi location, much of the tax reform talk was received.

While there will certainly be headlines today, before making any rash judgments, let’s see what actually comes of the current talk and final compromise. It’s a 400 page document (scribd link, if you want a peek-we did of course-nerds) that is certain to look much different when completed.

Enjoy your Friday and your weekend!

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
www.street-cents.com