Happy Masters Weekend … Who Returns to Glory First?

One of our favorite weekends … This one … because we get to watch the top professionals work their way around the finest manicured grounds of the August Georgia area.

Return to Glory

We are interested to see who makes a better return, the Capital Markets as they try to return to their glory … or Tiger Woods … trying to do the same.


Coming soon we have tons of neat stuff to talk about, and remind of a few tax items …

Have a Great “Return to Glory” weekend!

John A. Kvale CFA, CFP

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


The Six Letter Word – T A R I F F

Un-like the three letter word that is most prevalent on OUR minds currently … TAX …

Capital Markets have concerns of a six letter word ….

TariffTariff Wine

It’s such a little word, it almost needs to be bigger to show its’ importance…

Just in case you have not seen some of the rhetoric blowing capital markets around, the US and China are talking trade war, which is putting fear on everyone’s mind one day, then relief and rejoice the very next day … depending on the sound bite coming from each government official.

The reality is this will likely settle out some where in the middle.  Most will be happy … and we go along our collective merry ways. Until then, expect extra spicy headlines followed by more volatile Capital Markets.

It even could be just another excuse to find our footing after we got ahead of ourselves ….hmmm

Maybe a glass of Tariff Wine is just the ticket….

Patience is the key here!

Ok … back to Tax stuff !

Have a Great “Less Tariff Worry” Day!

John A. Kvale CFA, CFP

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

March 2018 Podcast Video, Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our March 2018 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 format.

March 2018 Video

Financial Planning Tip (s) –

Final of FIVE Tax Savings Ideas you can do NOW for LAST Year’s (2017) TaxesUncle Sam

We completed the five part series … Three were let out of the box last month …. Let’s quickly review them and then the two final parts from this month!

HSA or Health Savings Account

Our post here, speaks of the terrific opportunity to set aside Pre-Tax dollars to use now or later for medical expenses.

SEP – Simplified Employee Pension

As mentioned in our Post Here, there are very high limits of contribution, and the SEP can be done during mandated RMD’s, as well as in tangent with a 401k program, as long as the upper limits collectively of contribution are not violated.

Pre-Tax Deductible IRA

As the one of the original retirement vehicles and so vintage many forget (We Don’t!) we want to remind here in our post about the IRA – Individual Retirement Account.

Tax Savings reach back reminders from THIS month/March

Maximizing the Sales Tax Deduction

Here in our post this month, we remind everyone to be sure and maximize your Sales Tax Deduction.

From the post …

Here are a few items that may make your standard sales tax deduction drastically inaccurate and woefully low- thereby costing you tax dollars:

  • Bought a large Asset – Think Car or other similar item
  • Had more then normal personal taxed expenses – for whatever reason
  • Large Taxable Asset of any kind purchased
  • Major expense where you paid sales tax – Think Wedding, Large Party

Be sure to maximize this deduction as it looks like the new tax rules will greatly mitigate it’s use moving forward.

Medical Expense Deduction

We all some type of medical expenses each year. What is a challenge if determining what is and is not deductible.

The IRS does a terrific job with their Publication 502 of reminding and outlining what may be a deduction. In our post here, we remind of a few favorites that we find are frequently missed …

  • Capital Expenses for home improvements
  • Transportation Cost
  • Television
  • Telephone

Are possible (check to make sure) deductions we find interesting and easily forgotten.


Capital Market Comments

Finding our Footing After Getting Ahead of Ourselves


Another month and our thoughts are the exact same…so much we did not even have to change the title of this part of the review from last month… the chart is updated … looks about the same…

We think patience is needed as this will take time to digest and again find our footing.

Patience will be needed!

Here is where we are now —

3-31-18 SPX w JK Trendline and 200 DMA

For those wondering …. for now, it looks like the 200 Day Moving Average (line below our trend line) is the lower level of support … It may break, which is fine, but for now, looks like someone wants it to hold.

We will keep watch and keep you updated!

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

John A. Kvale CFA, CFP

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

Happy Retirement to Cathy after 11 Years! Good Friday Holiday Office Hours

Seems like only yesterday Cathy Kitzman known in the office as “CK” was making her way to the office for the first day. Fast forward to what seems like only a minute in time … 11 years later … and tomorrow is the last day for “CK”…..

Retirement in a smaller town outside the bands of Dallas and concrete sidewalks awaits CK … With a freshly built new home overlooking a lake and huge back yard, we likely will not have to worry about her accidentally coming to the office out of repetition.

Like any long term relationship, there were ups and downs (long forgotten) but over all, a wonderful journey … now on to the next chapter …. RELAX !!!!!!!

Happy Retirement “CK” We will Miss You!

CK Picture

Good Friday Abbreviated Market/Office Hours

Friday is a Capital Market Holiday and tomorrow, Thursday, actually has early closing on a few of the exchanges.

Our office will be closed as well.

Have a Great “CK Retirement” Day!

John A. Kvale CFA, CFP

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


Second Half Dozen of IRS Annual Dirty Dozen Tax Scams

Earlier in the month we covered the IRS’s first half dozen of the annual Dirty Dozen Tax Scams here, in this post.

Without trying to be too redundant … here are a few reminders with regards to the IRS and the methods of communication, which is frequently violated by scammers, making it easier to spot them!

How Do the Scams Work?

Con artists make unsolicited calls claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They convince the victim to send cash, usually through a wire transfer or a prepaid debit card or gift card. They may also leave “urgent” callback requests through phone “robo-calls,” or send a phishing email.

The IRS Will Never:thief

Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.

  • Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
  • Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
  • Ask for credit or debit card numbers over the phone.
  • Call you about an unexpected refund.


IRS Dirty Dozen Tax Scams – The Second Half Dozen

Inflated Refund Promises

The IRS is warning tax payers not to sign a blank return on the promise of a big refund. Not only is it a bad idea to sign a blank return for obvious reasons, but not knowing what is on that return could create more problems than a tax payer can imagine.

Don’t do it, warns the IRS.

2018 Padding/Inflating of Deductions

Not only is the IRS warning tax filers to stay straight and not over inflate their deductions, but this year they are also warning Tax preparers NOT to falsely inflate deductions. Of course mistakes occasionally happen, but the tax code is actually pretty liberal, let’s all stay on the straight and narrow.

Don’t Make Up Income – What your kidding? We explain

Making up, or falsifying income sounds like a crazy thing to do … who in their right mind would do such a thing. Well it turns out this is a problem that occurs in order to get Earned Income Tax Credits.

The last thing you want to do is show MORE income than you earned … let’s not be silly here!

Don’t get talked into Frivolous Arguments

If it sounds too good to be true, do not go there. We do not have to look too far to see a fallen celebrity that bought into one of these cult like groups that says you do not have to pay taxes, and you should argue such. ALL and we mean ALL, of those partaking have found that YES, we do have to pay taxes, and rightly so.

Again, as crazy as it seems, according to the IRS, this is still occurring. Don’t bite!

Abusive Tax Shelters

Several decades ago there were a rash of invest one dollar and right off three on your taxes on various weird investments. If the only reason you are making an investment is to save taxes, turn your hat back around frontwards and ask yourself “What the heck am I doing?” Investments should be made for profit … let’s not lose sight of the forest for the trees.

If it sounds too good to be true, it is. Again, the code is relatively liberal in what we are allowed, no need to push the envelope!

Offshore Tax Cheating

Certainly we live in a more global, small, quick money moving world. This may lend itself to a thought of and Offshore Tax account. Again, not worth the trouble for the vast majority of the population.

If you do not have a need for an offshore account, savings taxes by opening one, is likely not a good idea. Earnings carry a tax liability, just the way it is.

Judge Learned Hand Closing ThoughtsJudge Learned Hand

“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. public duty to pay more than the law demands.”

Given all the above, it is not our duty to pay one cent more in taxes than we owe, as can be gleamed from the judge.

We make every effort to pay as little taxes as possible, always between the line though!

Have a Great “Less Tax Scam” 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 2 2018 Newsletter (Early Release) Video Audio Podcast Review By John Kvale

Early Release Special Q 2 2018 Newsletter

This Newsletter was so full of tax related information, especially reach back to last year NOW savings ideas, that we published and sent paper copies early in the Quarter to beat the regular tax filing deadline.

Welcome to our Video and Audio Podcast Review of our Q 2 2018 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 2 2018 Newsletter

And here is your review!

Five Reach Back NOW Tax Savings Techniques

In this hugely in depth article was originally run in abbreviated form, her on street-cents.com

HSA – The Health Savings Account

In this part of the Newsletter Article we discuss why we like the HSA so much. Here are a few…

  • No phase outs
  • No mandatory end of year usage – use it or lose it
  • Investment Options
  • Pre-Tax contributions
  • Tax Deferred Growth
  • Tax Free Withdrawals for qualified medical costs

Here is the concise post, here on street-cents.

SEP – The Simplified Employee Pension Plan

Here are the high points to this portion of the Newsletter Article …

  • IRA on Steroids
  • Pre-Tax Contribution
  • Super High Income levels if income high enough to offset
  • 1099 Income Offset – even if you have a 401k and if you are in RMD mode
  • Easy to contribute
  • Tons of investment options
  • Procrastinator’s dream with a contribution available upon extension filing

Here is the post, again specific to just to the SEP.

IRA – Vintage original retirement program, but still a goodie

Often forgotten, the good ole IRA makes up the third of our five tax savings techniques.

  • Best for W-2 workers without a retirement plan
  • While maximums are lower, income is not needed to contribute
  • Flexible investments and death benefit options
  • Pre-Tax is best way to fund – not post tax in most cases

Here is our post specific to the IRA.

Sales Tax Deduction

In likely the last year of this deduction due to changing tax laws, this deduction is given to most in a standard amount, but can be further enhanced under the appropriate situations.

If you had a big ticket item of any type that had sales tax, you likely will be above the standard given amount. Think back of when you purchased that car or other item. If it was last year, add all of your sales tax up as there is no limit to this deduction. (Phase outs may limit)

Note: Those in state income tax states are likely not a user of this deduction.

Here is the specific post.

Medical Expense Deduction

Forgotten frequently, we reminded recently in this post of the Medical Expense Deduction. In our Newsletter we really roll up the sleeves and attempt to remind everyone of the possible Medical Expenses you may have forgotten.

Publication 502, located here at the IRS website does a fantastic job of numbering the various deductions.

  • Home Improvements
  • Transportation
  • Television
  • Telephone

These are our favorite possibly forgotten Medical Expense Related Deductions.

If you are in doubt be sure to check the link to Publication 502 as we really can’t emphasize enough just how comprehensive their list is.

VIX and the XIV

In our detailed article in the Newsletter, we gest of the silliness of too aggressive investments.

When you pick up Penny’s in front of a giant steam roller … When the giant awakens …

3-4-18 VIX Cropped

Oops … it looks like this!

3-4-18 XIV

Much of the Volatility in the Capital Markets were sturred up by this event.

It may take some time to clear this completely. Patience!

Roth Versus IRA – AKA Pre-tax or After Tax

This is a super article that speaks to those who wonder if it is better to do a Roth or another type of Pre-Tax plan such as a 401k, IRA or SEP.

The answer to this question as mentioned in great detail in the Newsletter article is actually not that complicated.

The vast majority of people are in a higher tax bracket while working and lower while retired. If you are one of those people, Pre-Tax is better.

If you find yourself in a low income year/early earning, and expect your income to be higher in the future, a Roth might be better.

On word of caution that is included in our Newsletter .. Roth’s are often overused, so be careful.

Hope you enjoyed this slightly longer than normal summary and detailed review of our Newsletter – Podcast – Video, Review !

See Ya next Quarter!

John A. Kvale CFA, CFP

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

Part 5 of our Reach Back NOW to last Year’s Tax savings – The Forgotten Medical Expense (s)

Medical expenses greater than 7.5% of your Adjusted Gross Income (AGI) can be deducted in many cases. This is not new news to most. What is news is just what can be deducted or worse yet, forgotten to be deducted — read on!

The Forgotten Medical ExpenseMedical -checklist-3222079__340

A Qualified Medical expense can be deducted on your income taxes for last year 2017. Our goal on this subject is to remind you just what can be a Qualified Medical expense.

Publication 502 by our friend at the IRS (yes, I said that – friends- check out the publication and you will see why they are our friends) gives you a mind jarring reminder of just what, and what not is a Qualified Medical Expense.

If you have ANY possibilities that you may be above the 7.5% deduction for medical expenses, Publication 502 is worth a read as it has TONS of ideas you may have forgotten or did not even know were a deduction.

  • Capital Expenses for home improvements
  • Transportation Cost
  • Television
  • Telephone

Are possible (check to make sure) deductions we find interesting and easily forgotten.

Don’t let that medical expense deduction go away as it looks like the new tax laws are going to greatly diminish this deductible expense.

Have a Great “Found Medical Expense deduction” Day!

John A. Kvale CFA, CFP

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