Tag Archives: tax planning

October 2020 Podcast Video, Financial Planning and Capital Market Update – By John Kvale …

Hello and Welcome to our October 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!

Newbies –

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

Hope you enjoy!

October Video


Financial Planning Tip (s)  –

Social Security COLA Increase 1.3%

Social Security, one of the few Pension Like Benefits that has a Cost of Living Adjustment (COLA) announced an annual increase – there is not always an increase … which we discussed here in this post with links to the announcement for those wanting more detail!

Possible Realizing of Capital Gains

With year end tax planning in mind, here in this post we discuss the possibility of realizing Capital Gains if your are on the fence and may be thinking of pushing gains out to next year…. this with approval and knowledge of your tax professional – let’s not get reckless!

Capital Market Comments

Election Outcomes and Market Reactions

Here in this post we carefully tip toe into the Election outcomes and possible market outcomes ….

Hanging Chads – No one is elected and a lengthy battle ensues – In our minds, most Market disruptive – Participants dislike uncertainty

Clean Sweep Either Direction – This may surprise you, but participants generally favor a partial party political holding

Partial Party Holding = Inferred from the points above – Partial party holding in either direction is likely least market disruptive

Have a Great October Update!

Talk to you at the end of November!

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 Planning Thoughts – Realized Asset Tax Gains, If you’re on the Edge You Might Want to Take Them Now

With a couple of weeks of the final quarter under our belt we thought it a good time to talk about year end tax planning.

Once again much of this has come as a result of questions from you guys in the field, so thank you very much for the idea!

If you’re on the edge of taking gains on assets, strongly consider taking some this year!

Given the current level of tax rates, no matter what the political outcomes it’s likely we are at a lowest tax rate for sometime to come.

The much-needed stimulus and in our opinion perfectly OK to use, will eventually need to be chipped away at in some form or fashion,

It is very likely that we may all see higher taxes in the not too distant future both from a Federal Income Tax Level and an Asset Capital Gains level as well.

If you’re planning on selling a business, stock, asset or anything that may realize any taxable event certainly consider doing it sooner as in possibly this year, rather than later.

We are by no means making a tax statement forecast but simply looking at the odds and attempting to give ourselves the best possible longer term outcome. Please don’t recklessly go realize gains and certainly check with your Tax professional before making moves!

Have a Great “Realized Tax Gains” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.




January 2017 Podcast Video, Financial Planning Tip and Economic Review- By John Kvale

How Many times have you entered something with the date of 2016 ? If you are like me, SEVERAL…

Here is your January 2017… yes, new Month and new Year, Monthly review!

As a reminder, last month we started with an Audio Podcast format for those that are unable to SEE the video or just prefer to listen to the audio… this makes the review slightly longer, but more descriptive.


January 2017 Video


Financial Planning Tip –

Job Change/Retirement Checklist

Thanks to all of the fantastic comments, shares, views and thank you’s .. here is a brief summary of the actual super popular post:

  • Grab that Last paycheck– .
  • RSU -Options- Grants – Don’t let them expire
  • Employee Stock Purchase Plan-Make sure you have control
  • Deferred Comp–May be a taxable event, find out when
  • Pension – Be Knowledgeable
  • Health Coverage– Don’t go a day without
  • 401k– Old take control
  • New 401k– Be aggressive
  • Severance– Understand it
  • Social Security Withholding – Watch the double withholding

The underlying theme is making sure you know where everything is and any time deadlines you may now have due to the change… Your Vault is a great place for all this information !

Capital Market Movement

Rate Watch Still

Interest Rates have moved smartly higher and seem to be holding… signaling higher growth? This is the 10 year treasury rate, the benchmark in many cases for length of rates.


Happy 2017!

John A. Kvale CFA, CFP

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


December 2016 Podcast Video, Financial Planning Tip and Economic Review- By John Kvale

The year is over… Wow, was that fast or what? As regular readers know we do a monthly review. Starting with this video we are going to also have an emphasis on describing our updates for those Podcast listeners. So if you do not have the ability to watch the video, the Audio Podcast of this review will bring you up to date and fill you in well.

Let’s finish 2016 with our December Financial Planning Tip and Economic Review.. Here we go!

December 2016 Video


Financial Planning Tip –

Tax Tips and more

The best part of these tips are they can be done now in the year 2017 and help our 2016 tax pain….

  • SEP – Offsets 1099/Non W-2 Income
  • HSA – Deductions for high deductible Health plans
  • IRA – Oldie but a goodie-
  • Roth – Special purpose retirement vehicle
  • Itemize those Sales Taxes

Capital Market Movement

Everybody is happy?

We have spoken about the consumer and her role in pushing GDP (Gross Domestic Production) forward when happy… now take a look at investor confidence, again from our friends at Gallup…


Triple digits here we come ?  Time will tell!

Have a Great start to 2017!

John A. Kvale CFA, CFP

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


Corrected Tax Statement Update…..Time to start on Personal Taxes…..Thanks Team, On the road home

We are happy to report another round of corrected 1099’s has been completed and this time we have none. As we had cautiously stated earlier, when we received only two corrections in the first run, we felt pretty good about the next six, as each run usually has a diminishing head count….but there are still five remaining.2012 1099

Time to start working on the personal taxes for 2012 due April 15, 2013!

If you have not started your personal return data gathering and organization, let this be a gentle push…time to start moving on this, April 15th will be here before you know it. All financial reporting centers are clogged near mid April as duplicate lost requests fill their airwaves. If something is missing, it is much easier to get now rather than later.  Again…green light for gathering but light red light for filing ….just a little longer and we will give you the ok to file.

Exciting information next week..”Mini-Me” Options and A True story: $14,500 Reasons to review your return…

  • On Monday a new mini option contract begins trading…we will speak about it in greater detail as we are interested to see market acceptance.
  • $14,500 Reasons to review your return…we have been waiting for the right time to catch your attention on this true money-saving story….next week this will hit your in-box

On the way back home…thanks team

Today marks a travel day back home and preparation for the regular saddle on Monday. A special thanks to Cathy, Donald, Rich, Kathy, Team 16, technology and my family (early AM patience as I worked each morning) as well as my new-found friends in Starbucks. This week was a happily unusually busy one, and not a beat was missed.  You guys are great!

Have a Great Weekend!


PS Newsletter is coming along nicely….

PSS Yes I am sore…yikes !

8222 Douglas Ave # 590
Dallas, TX 75225

Not Finished with Your Taxes? Meet IRS Form 4868, Automatic Six Month Extension

It’s ok, and there is nothing to be ashamed of if you didn’t finish your taxes!

Tuesday, April 17th, 2012 is the official deadline for regular tax filing. If you have not completed your taxes for whatever reason, meet IRS Form 4868.

By simply downloading this form and filing in the one small area, you will be granted an automatic six month extension, no questions asked. Do remember that if you owe taxes and you do not send in enough funds to cover your shortfall, you may be subject to penalties.

This tax season has been the toughest for us in the last 10 years. The new tax basis rules and adjustments have made for a confusing season, and we are not even CPA’s!

So if you ended up running out of time, be sure to send in Form 4868 along with any possible shortage in taxes you may owe. Now if we are up against the wall again in six months, then we have an issue, but that is a full six months away. Just because we have six extra months, does not mean we have to use all six months.

Happy Tax Filing Eve Day, and start to another great week!




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!




Not a Patriotic Duty to Overpay Taxes…

Over the weekend I ran into this quote by Judge Hand, a famous US Judge. Given the current time of year, I thought his quote very timely.

By Judge Learned Hand

Judge 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.
Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands.”

Have a Great Monday!


PS We will release everyone to file their taxes shortly. Corrected 1099’s are minimal so far this year !!

A Dozen Common Tax Mistakes That May Cost You Money (Part Two)

As a follow up to our earlier post of A Dozen Common Tax Mistakes, today we get to the top six that we have experienced with clients over the last two decades.

As a quick review of from number 12 to 7, are:

  • Missing Extension
  • Incorrect Basis
  • Not Filing when needed
  • Medical Deductions
  • Rounding Deductions
  • Missing Duplicate Social Security Withholding

Now on to our experienced top six, again in Letterman like format:

6.  Under Withholding: Very frequent and costly, under withholding sometimes occurs with very little tax payer changes; If you are uncertain on your amount owed, attempt to confirm you have at least paid in 110% of your prior years taxes as this will help you avoid penalties

5.  Not Filing Soon After Extension: While an extension is easy to file and recommended, if you owe taxes the extension does not stop penalties, so it is always a good idea to file soon after your extension in order to lessen penalties, if any

4. Stock Option Exercise data incorrectly entered: After executing a sale of stock options, SRO, or even restricted stock, you will receive a company related tax form; We have found due to the variety of reporting methods by various different public companies this information is often miss entered on tax returns. It is not usually a tough fix, but is easiest if entered correctly with the primary return

3. Loss Carry Over: We often times see losses from prior years, left out and therefore not receiving full benefit; Be sure to carry those losses forward, either passive or active

2. Filing too Quickly: For many of us, it is hard to believe, but indeed some do file too soon and then receive a corrected statement of some type. Completing your taxes in late February is fine, but we recommend holding your personal/1040 until late March in order to hopefully wait out any corrected tax statements

And Finally, the one item we see the most, that has caused many grief, including our own personal situations:

1. Missing Interest: The most frequent item we see causing tax payer grief is the missing interest on a tax payers return. It could be an incorrect address change, forgotten account, or even a closed account that generated tax reporting early in the prior tax year, but missing interest reporting ranks as our number one problem for tax payers. Again an easy fix, but most times results in tax penalties and additional payments

We hope you enjoyed our Dirty Dozen Tax Mistakes and thank you for your time. Also a  couple of useful tax related sites are as follows, the IRS Forms site, and a great site for estimating your taxes.

Thanks again for your time and Have a Great Day!


Estate Tax Exemption Legislation, Ball In Senate’s Court–Keeping Close Watch

The race is on to hammer out a new Estate Tax Exemption amount prior to the end of the year, 12-31-09.

As a refresher on this tax; Estate Tax is the tax owed the Federal Government when the last heir of a generation is deceased, i.e. Husband and Wife (Taxes generally due as remaining assets move down in the family legacy, to kids/next generation.)  Also known as a “Death Tax”, the purpose of this tax is to tax wealth as it travels down to the next generation. 

Currently the Estate tax level is $3.5 Million, with a 45% tax on amounts over this level. The level and rate have changed due to various laws over the past several years and are due to be eliminated as of 12-31-09, only to return at much lower levels and historically higher rates as of 1-1-2011, such the urgency for passing some type of law prior to the end of this year.

Estates can be defined broadly by all owned assets, minus liabilities. This definition brings into the equation, raw land, minority ownership interests, royalties, and any assets that may have value, regardless of their liquidity OR cash flow. (It is not uncommon for someone to have a very high estate value, yet low-income, often times tripping unsuspecting heirs as their parents/relatives had no idea of the estimated value of their estate.)

While many applaud the repeal of the Estate/Death Tax as of 12-31-09, we think it unwise to expect this tax to permanently go away.  In our opinion we would much rather have a level that can be planned for today, with some stability in level and rate, rather than the possible roller-coaster (down and up of level and rate) that will occur over the next year.  Let’s keep our fingers crossed, and we will keep you updated. 

See related Bloomberg story Estate Tax Is Extended by U.S. House With Exemption for First $7 Million  

Have a Good Day!