Hello and Welcome to our January 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!

Break In: Dog Blooper at 2:55 for those wanting a chuckle!

Newbies –

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

January – 2020 Video

Financial Planning Tip (s) –

Handy New Tax Rates and Table

Early in the month, here in this post, we review the new contribution levels, rates and maximums.

As suspected, we have reviewed this ourselves a ton of times already as 2019 and 2020 levels blur during conversations…

Homesteading Reminder

In our article here, we remind all of those who may have changed primary residence last year to check their homesteading provisions as this can be a significant saving, depending on your situation.

Examples

• California exempts the first $7,000 of residential homestead from property taxes.
• Colorado allows a 50% deduction for up to the first $200,000 (equivalent to a $100,000 exemption if the property is valued at $200,000 or above) for seniors (over age 65) who have lived in their property for ten consecutive years.
• Georgia allows a 1% HEST only in a few counties.
• Florida‘s homestead exemption allows an exemption of 160 acres outside of a municipality and one-half an acre inside a municipality.^[5]
• Kentucky, for 2013 and 2014, the exemption has been set at $36,000. Once it is approved, homeowners who are 65 or older do not need to reapply for the homestead exemption each year.^[6]
• Louisiana exempts the first $75,000 of residential homestead from local property taxes.^[7]
• Michigan exempts the homeowner from paying the operating millage of local school districts.
• Mississippi exemption from all ad valorem taxes assessed to property; this is limited to the first $7,500 of the assessed value or $300 of the actual exempted tax dollars.^[8]
• New York‘s School Tax Relief (STAR) program exempts the first $30,000 of a primary home’s assessed value from school district taxes; the exemption is limited to owners with incomes under $500,000. Additional exemptions are available for people over 65 with a limited income. The STAR program applies only to school taxes; no homestead exemption exists for taxes levied by other municipal entities. New York prevents a New York resident claiming this exemption if the New York resident owns property in another state and claims a similar exemption in that other state.
• Oklahoma allows a $1000 deduction of the assessed valuation, about $75 to $125 of savings per year, if owners file for homestead exemption with the local county clerk.
• Rhode Island exempts the first 20% of the home value from property taxes.
• Texas allows a deduction, with additional exemptions available for county taxes, people over 65 and people who are disabled. It also requires school districts to offer a $25,000 exemption (but not other taxing districts, such as cities and counties).^[9] Texas further limits the assessment increase on a homestead to 10% of the prior year’s value.

Helping Close Relatives or Others

During the month, we had multiple Financial Planning questions for close relatives and friends, which were asked, but some what hesitantly…

Wanting to reinforce the fact that we are glad to help, in this article we remind everyone we are not only flattered by the question, but VERY happy to help!

Tax Forms and Information Reminders

In another handy reference post, here, we discuss the tax form alphabet and more importantly, note the due dates and expected delivery times of the most common tax forms….

1099- R and 1099 Miscellaneous cover 95% of most folks reporting!

We know, it’s tax season again…not everyone’s fav…but we are trying to help make it easier.

Capital Market Comments

The markets finally took notice of the CoronaVirus. As scary as the virus is, modern day medicine and the actual fast spreading of the event and comprehension, unlike SARS which we remember well will likely help stem the fears and spread of the virus.

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

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

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