They may have pushed tax due dates out… but the line in the sand still stands… and it is next Wednesday….
We are feeling the heat, which is excellent…so glad to help!
On Monday a more direct reminder and details….
After two longer posts this week, we will leave your eyes less strained..haha
Ahhhh… today is a Friday, heading into a mid summer weekend…
Be Safe, Have a Good Friday, and a Super Weekend!
John A. Kvale CFA, CFP
Posted in Investing/Financial Planning, Tax Related
Tagged Tax Due Date, Tax Reminder, taxes
Not sure about you guys, but in several conversations this week, as well as a few reflection times, it was super hard to believe January is almost gone… Wow!
Speaking of Fast January, how about already another Friday… with a short week and turn around travels next week, looks like we are in full stride….
Given the mailbox (and inbox) is likely beginning to fill with those pesky tax forms, we have a few neat stats on Tax/Audits/IRS reviews to share soon… We actually attempted to get them into the Q1 2020 Newsletter to no avail… a good problem (too much content) … We think you may find some of the statistics very interesting, but of course never push the gray when dealing with Uncle Sam!
Here is a Teaser:
Regular readers know sports … and especially Tennis (Australian Open) is big at the homestead…. between a 17 hour + time zone change and the 15 year old deciding to do 6 am — YES … 6 am tennis practice, the candle has been burning a bit at both ends…. maybe the reason for the Fast January… all good!
Ahhh….but as mentioned early, today is a Friday…maybe a Fast Friday in January, but still a Friday … enjoy your weekend and get ready for some fun Tax Facts Next Week!
Have a Great “Fast Friday” Day!
John A. Kvale CFA, CFP
Posted in Investing/Financial Planning, John Kvale, Personal, Tax Related
Tagged Audit, Australian Open, tax, 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!
The average annual increase since 1987 is 4.8%% Why?
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….
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
In our continued pursuit of Tax Research and Planning ideas, we wanted to show you these items …
More on this in the coming Newsletter-
Broadly – the bottom line, across the board, taxes will be lower.
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
Posted in Investing/Financial Planning, Tax Related
Tagged dinkytown, Tax Calculator, Tax Rates, taxes
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.
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
Posted in Investing/Financial Planning, Tax Related
Tagged Holiday Schedule, Tax Reform, taxes
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 !
From our friend Michael Kitces…
Have a super Less Taxing Friday!
John A. Kvale CFA, CFP
Posted in Investing/Financial Planning, Tax Related
Tagged 2017 Tax Rates, Federal Income Taxes, MIchael Kitces, 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).
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
Each year we FINALLY say goodbye to tax season.
Taxes are extended or done.
The pain or pleasure has been experienced.
Money has moved one direction or the other.
The lost, but finally found forms are filed safely.
Then you gasp as one last form hits your mailbox.
Straggling surprising and pesky Tax Form 5498 is a form mandated by the IRS that matches your Pre-Tax contributions to your tax return.
Contributions for the prior year, made in the current year may show in this form…do not worry, the IRS will match these with your return NEXT year.
This form comes out AFTER tax filing season to make it easier to catch the contributions for the IRS.
File it in your 2017 tax files… No other action is necessary… Blood pressure back down..haha
Today is Friday… Have a wonderful weekend !
John A. Kvale CFA, CFP
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.
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
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Posted in Economy, Interest Rates, Investing/Financial Planning, Market Comments, Newsletters, Video, World Political
Tagged China, David Cameron, Economic Cycle, Economy, Interest Rates, Russia, taxes