Tag Archives: Property Tax

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

 

October 2015 Year End Tax and Financial Planning Tips, Capital Market Review (Video by John Kvale)

Welcome to our monthly Economic, Capital Market, and Financial Planning tip of the month.

This months Special Tax Financial Planning Tip of the month is not one, but two tips that may save you tax dollars before year end !

For those new to our writings, we touch on the most pertinent Financial “stuff” along with a video of my mug that has even more specialized details of the latest month as well as this post.

Ok…let’s go!

VIDEO

YouTube Direct Link 

 

Clump or Push those property taxes

  • If you are just under the standard deduction for itemizing, consider clumping your property taxes
  • If you had a very big year of income and may have phase outs of deductions, consider pushing those property taxes into another yearProperty Tax

In our clumping or pushing post, here we discussed in great detail a neat technique to maximize your property tax itemization write offs. Now is a good time to pull out last year’s tax return and review your options — we will be glad to help if you have any questions!

Roth Conversion to Offset Active Losses

  1. Flatten your loss – not lose it
  2. Possibly freely convert your taxable IRA into a Roth
  3. Future appreciation in your Roth will be without taxes – tax-free withdrawals tooRoth Conversion

In our Roth Conversion post we discussed in great detail a possible flattening of your income and losses should you find yourself in this situation – this is a complicated, but rewarding technique – if applicable!

Give us a call if you have any confusion/questions! Do not try any of these techniques without first visiting with you professional advisor!

The Bounce back

Never go all in or all out !

This graph from our Monthly video last month:

9-30-15 Vanguard Total World Equity

Seemed silly to just watch our hard earned funds slip — and slip !

Fast forward to the end of October — The Great Bounce !

10-30-15 Total World Index

Just another reason to NOT watch this on a monthly or even quarterly time frame — decades is more appropriate!

Have a Great Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225JK Street Cents Logo

Year End Tax Tips – Clumping or Pushing Property Taxes

From now until near the end of the year we will be highlighting very special tax tips to help maximize your tax savings. Property Tax

Here is the first in a special tax savings series heading into year-end.

Clumping Your Property Taxes

If you have limited deductions, review your property taxes and see if it makes sense to clump two years into one

If you have been using standard deductions (not itemizing) see if clumping two property tax payments into one year will get you over the standard deduction – if it does, any extra dollars over your standard deduction will be a tax savings you otherwise would not have received.

Pushing Your Property Taxes Out a Year

If you have had a super year and may face a phase out in deductions due to a high income this year (at certain income levels you lose your deductions) you may want to consider pushing your property taxes into another year. If your deductions are partially or completely phased out, you may receive minimal tax benefit with ANY deductions.

There are a lot of moving parts in these situations, if you have a question give us a call — these are certainly not a recommendation to do either without further review.

Have a Great Tax Savings Wednesday!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225


 

 

 

November 2014 Super Cool “Tax Saving” End of the Year Financial Planning Tip, Capital Market and Economic Review (Video)

Welcome to our monthly Economic, Capital Market, and Financial Planning tip of the month.

This months Financial Planning Tip of the month, like last months, may save you valuable tax dollars!

Once again a special thanks to all of  YOU … the best clients and friends as your experiences have again given us the subject matter for our Financial Planning Tip of the Month.

For those new to our writings, we touch on the most pertinent Financial “stuff” along with a video of my mug that has even more specialized details of the latest month as well as this post.

Ok…let’s go!

VIDEO

You Tube Direct Link   or   Vimeo Direct Link

 

Another special Tax saving Financial Planning Tip: consider clumping of those property taxes

Pull out your tax return from last year, and the prior if you have it.Uncle Sam $

If you are not itemizing (or just barely over the standard deduction) you MAY be a candidate for clumping your property taxes.

Now pull out your tax bill that you most likely just received. If multiplying it times two throws you well over your standard deduction, consider clumping two of our tax payments into one year i.e. Pay January and December of the same year and then skip the next year, especially if you are not itemizing or just barely over the standard itemized amount.

IRS Standard deductions for 2014:

  • *Married filing jointly or surviving spouse $12,400
  • *Head of household $9,100
  • *Unmarried $6,200
  • *Married filing separately $6,200

 

Confused? Give us a call, we will explain!

cO-aNCHOR Sirius sATELlITE RADIO SHOW

Early this month (Nov 4) I had the honor to be asked to co-chair a financial planning Sirius radio show, presented by Wharton Business School and a finance professor at the university.Sirius Logo

After the intro and background of myself and our firm, the phones immediately rang from across the United States with multiple single individuals, many of them women, matching much of our client base.

After a full hour of spontaneous questions and answers, the show was on to the next segment. What a fun experience and a super way to give back.

Have a Great dash to the end of the year!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225