Tag Archives: Tax Clump

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

Posted on January 7, 2019 by | Leave a comment

Hello and Welcome to our December 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 as well as Video!

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

December – 2018 Video

Financial Planning Tip (s) –

Staying Invisible on the Internet

With concerns of our personal information being constantly delivered/sold to others, we found this really neat chart, here in our post as a great guide on staying invisible on the internet.

The chart is HUGE, noting the many ways we are being tracked this day and age… lots of neat, stop tracking me techniques included…

Capital Market Comments –

Good News – Such Fast Movements May Not  Last as Long

One time when being fast may be to our benefit …

Markets that throw a quick hissy fit frequently get their feet under themselves …

1-6-19 spx -

Using the Great Recession of 07-09 as a guide (below)  – BTW we DO NOT think this is what we are experiencing… it took years for the drop to occur, not days…

1-6-19 spx 07-10

We may be experiencing a slow motion 87, 91 or 99 like drop, which were faster, briefer, caused by outside worry and forces, but certainly concerning at the time!

Let’ all buckle up and be thankful we NEVER drive fast – time will tell!

 

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

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
street-cents

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Posted in Economy, General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Video

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

Posted on December 3, 2018 by | Leave a comment

Hello and Welcome to our November 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 as well as Video!

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

November – 2018 Video

Financial Planning Tip (s) –

Clump – Maximizing the new standard deduction

With a $12k individual standard deduction and double that for joint filers it takes work to maximize the standard deduction threshold… Add the fact that SALT State and Local Tax deductions are now limited to $10k annually, clumping expenses into one year as mentioned here in our post and visually below may be the only way to get above the standard deductions for many …

Clumping Taxes

Capital Market Comments –

Powell Signals a Slower Rate Increase

Current FOMC (Federal Open Market Committee) chairman Jerome Powell signaled the rate increases may be closer to over than just was stated just a month earlier… where a December increase, which is still almost certain, but three additional increases were promised in 2019 – not any more.

Given the long/lower rates of the last decade, it is not a surprise that the new normal may be lower –

Market Participants cheered this statement!

10-31-18 Fed Funds Rate

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

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
street-cents

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Posted in General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Video

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Clumping Property Tax and Deductions Reminder – Standard Deduction Maximization Strategy

Posted on November 26, 2018 by | Leave a comment

Over the Thanksgiving Holiday’s several family members were surprised to find out that there are still tax law changes – well clarifications, that are going on at this time…

It is possible that there will be changes/clarifications occurring right up and through this first “New” Tax season…

Now is reminder time for taxes — but given the above — we have more of a butter knife than a tax scalpel for our surgical tax techniques — No matter …. Let’s go!

Clumping Property Tax

A joint family will receive a $24k – yes … Twenty Four Thousand Dollar STANDARD deduction – add on to this that the new limited – state and local sales tax (SALT) deduction (read property tax) of $10k annually,  planning is needed to maximize deductions.

The easiest and most common way to POSSIBLY maximize deductions is to clump your property taxes as well as other elective expenses. As you can easily tell, clumping your SALT deductions will get you to $20k so we are still not there…

Mortgages interest up to $1million in loan value prior to 2018 and $750k after is still deductible.

Bad Deduction Planning

All of this fancy acceleration and delayed of tax deductible expenses is to avoid the following –

Every year coming up with just under the standard deduction! I.e. $23k of deductions annually is likely not as tax efficient as possible…

A better solution would look like this:

Clumping Taxes

Skip years = Standard/no itemization/simple tax return

According to this AARP report earlier in 2018 the approximate 30% of tax payers who formerly itemized will drop to about 10% –

Bottom Line do not feel bad if you do not itemize, BUT you may still be able to itemize every other year, under an appropriate standard deduction tax max strategy.

Reach out with questions before year’s end – We can help you calculate what the best strategy may be!

Have a Great “Standard Deduction Maximization” Day!

John A. Kvale CFA, CFP

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

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Posted in Investing/Financial Planning, Tax Related

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

Posted on December 4, 2017 by | Leave a comment

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

 

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Posted in Investing/Financial Planning, Tax Related

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