Tag Archives: Tax Deductions

Last Minute Tax Deductions you MUST complete by 12/31 to receive on THIS Year’s tax return!

April Settle up for 2017 taxes is just around the corner. While there a many items that have reach back ability (Contributions can be made next year – 2018 and still help 2017 taxes) what follows are reminders that you MUST make before year end 12/31 to receive a current year (2017) deduction.

Due by 12/31 to Receive 2017 Tax ReliefUncle Sam

  1. Donations to charity – Must be completed this year as it is a same fiscal year deduction
  2. 401k Maxing – Remember to get your maximum deduction for your 401k that you desire – Maximums are currently $18k regular plus $6k over age 50 years young catch up
  3. Medical Expenses – While possibly late for a procedure, supplies, equipment or other medical expenses claimed for 2017 must be completed by 12/31
  4. Gifting of Money – While not a deduction, recall that an annual limit of $14k to each person is available and resets on 1-1 of the following year (Greater gifts will require a gift tax return)
  5. Accelerate Expenses- Never buy just to buy, but if something is needed and it is flexible enough in timing to pull forward, review your expected income this year versus next and see if it makes sense to make that purchase now

Have a Great “Less Taxable April 2018” Day!

John A. Kvale CFA, CFP

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



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

8222 Douglas Ave # 590
Dallas, TX 75225




A Dozen Common Tax Mistakes You Do Not Want to Make!

As we near the end of the tax season, we wanted to point you (click here) to our blog page that highlights our most common found tax mistakes. An important item to note, many of these are forgotten items made by us, the tax payer, not our professionals. There is also a handy link to the tax forms and a good tax estimator page.

Finalization of the big event on April 28th at 2pm is upon us, we will be notifying you shortly of the complete details.

Have a Great Day!




Clumping Deductions to Maximize Tax Benefit

The IRS gives each of us a standard deduction for Federal Income Tax purposes. According to the IRS Website, the standard deduction is a dollar amount which reduces the income in which you are taxed. This amount is adjusted for inflation and also increases at certain age levels.

Don't Let Taxes Drag You Down!

This deduction is certainly generous from and IRS standpoint, and acts as a floor for many of your deductions.  (The ultimate result of this deduction is a simplification of many tax returns for the IRS as a great number of returns only qualify for the standard deduction.)

If you are only qualifying for the standard deductions, here is a strategy for possibly maximizing your deductions every other year.

Clump your deductions: (Primarily your property taxes)

Once your mortgage is paid off, many times a tax payers biggest deduction, we have found individuals personal deductions often fall just under the floor of the standard deduction. A clever technique to maximize your deductions in alternating years, is to pay (“clump”) your property taxes in the same year, skipping the next year completely. This technique may push you over the standard deduction in alternating years and thereby give you a greater tax benefit.

In the clumping years, it may also help to maximize your discretionary donations, gifts, and charity activities, further maximizing your tax benefit.

We are not a CPA firm, and as such recommend you see your tax advisor for confirmation of your specific situation, but this technique may work for you!

Have a Good Day!