Tag Archives: taxes

A Much Forgotten But Fast Growing Expense Reminder: Personal Property Taxes!

With multiple inner circle friends and clients expressing fatigue at the escalating Property Tax bill… we set off to do some research. Our most interesting findings are when we feel like we are on an island, and no one else is discussing a subject …

With very little public information on the subject of Personal Property Taxes (think Home/Car) in just a step for steppers like fashion, we turned to our investment resources for some possible clarity –

It took us a lot longer than we thought to find sources that would connect the dots of the puzzle of escalating Property Taxes, but here is what we found!

Total US Property Tax Collections 1987 to Present

US State Local Property Taxes 1988 to 2018

Total Property Tax Percentage Change Year Over Year 1987 to 2018

US State and Local Property Tax Percentage Increase 1987 to 2018

The average annual increase since 1987 is 4.8%%  Why?

Case Shiller National Home Price Index 1987 to 2018

Case Shiller Average Home Price 1987 to 2019

Oh no ….

This is an annual 3.9% growth from 1987 to present –

So asset prices have increased at a 3.9% pace over the last 30 years but taxes at 4.8%?

May not seem like much, but over time IT IS….

3.9 V 4.8 House Growth Versus Tax Growth

We do not want you to think conspiracy or other… just be aware that tax rates are growing faster than assets rates…. oddly, per our Social Security Retirement discussion, wage growth is growing much faster than inflation…leading to a better standard of living, which tax rates are more correlated with…. additionally there are certain municipalities across the country that have struggling finances and are taking more aggressive measures to shore up the coffers.

Bottom line: Property Taxes are growing at a rate MUCH faster than our assets … if you are buying an asset, especially a house, keep an eye on the Property Tax Amount!

Have a Great “Tax Growth versus Asset Growth Rate” 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

Tax Comparison Chart – Link to 2018 Tax Estimator

In our continued pursuit of Tax Research and Planning ideas, we wanted to show you these items …

More on this in the coming Newsletter-

Here is a neat graphic comparing 18 and 17 Taxes

TAX Comparison 18 to 17 FINAL-TCJA-Filers-Chart

Broadly – the bottom line, across the board, taxes will be lower.

Favorite Detailed Tax Analyzer

After scrolling the net for a good tax estimator, we came back to our old favorite site, Dinkytown….

Here is our 2018 Dinkytown favorite 2018 Tax Estimator.

This link is to the more detailed version as there is a basic version that did not give us enough comfort in doing estimates….

Have a Great “Less Taxing” Day!

Happy Friday!

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

Tax Reform Act Update – Holiday Schedule Reminder

You may have noticed we have been stealth as it relates to the 48 hour old Tax Reform Act.

There have been many already speaking of the new tax law changes … with multiple last minute adjustments and it being one of the largest tax reforms in several decades, we want to get educated before discussing our thoughts in too much detail.

We do know that as of April 2018 the old laws will apply for 2017 settle up. In a “Lets not get the cart before the horse way!“, we will be speaking of both tax planning ideas over the next few months.

Holiday ScheduleHolidays christmas-3026690__340

Physically, we will be in and out over the holidays, including the week AFTER New Year’s due to a weird kids schedule this year.

Always tethered electronically, we will not be far!

Happy Holiday Season!

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

Q2 2017 Newsletter Podcast and Audio Review By John Kvale

Here are a few of the topics discussed in our new Podcast, Audio Video review.

  • David Cameron Speaks at length
  • University of Michigan Sentiment Indicators
  • Updated Price Earnings Multiple
  • Three Travel Tips to save you aggravation and time

Q2 2017 Newsletter Podcast and Video Review

 

Have a Great 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

 

Ever wonder why your Federal Income taxes are so tricky? 2017 Tax Rates…..Friday

As we close in on tax season there will be excitement (refunds) and disappointments (amounts due) …. as a side note it seems there are more of the latter than the former, but I digress.

Being HUGE proponents of tax planning and deep dive tax analysis, here are the tax rates we wade through to get the best possible result on your tax returns !

2017 Tax Rates

From our friend Michael Kitces…

img_0707

Have a super Less Taxing Friday!

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

 

 

Q1 2017 Newsletter Podcast and Audio Review By John Kvale

Here are just a few of the topics discussed in our new Podcast, Audio Video review. Due to the podcast format it is longer, but we think well worth the listen/view !

  • Taxes, Tax Deadlines, New Tax Dates, Tax Savings Ideas, Possible New Tax Rates
  • Economic Cycle Length
  • Interest Rates
  • Two cool Apps of the Quarter
  • 2016 Review
  • Managing your 401k, contribution reminders and matching stategies

Q1 2017 Newsletter Podcast and Video Review

Have a Great 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

 

One of the few tax choices left … Clump or Pay those Property Taxes?

This is the time of year that most municipalities ask for their property tax payment… In many cases you have the option to pay in the current year (December 2016) or next year (January 2017).

To Clump or Not to Clumpirs

Big or Small Income Year

Before just paying those property taxes as you usually do, think for a moment if you have had an extremely good (high income) or low income year. If either of these fit your situation it may make sense to defer your property taxes and clump them into one year.

Standard Deduction

If your standard deduction is greater than your tax write offs, check to see if pushing two property tax payments into one year will get you over the standard deduction.

Heavy or Light Charitable Year

Just as a high or low income year, some years we may find that we have given more to charity than others. Step back a moment and see how your property tax payment will affect your total tax write offs. It may make sense to clump.

This is by no means a recommendation to clump or not as there are a lot of moving parts with this strategy. We are only asking you to think about your situation and if any may apply. See your tax professional before making a move!

Contact us if you have any questions!

Have a Great Friday and weekend… sorry for the heavy post on a Friday but the year is almost gone and we wanted to get our tax strategies to you!

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