Asset Planning, Inc Blog

The latest from the team.

Time for a Financial Checkup

After the hustle and bustle of the holidays and the start of a new year, most people start to look ahead and like the idea of a fresh start. Take advantage of this motivation by applying it to your finances as well and giving yourself a financial checkup.  Yes, I know that taking a good hard look at your finances is not always something that you look forward to. But being realistic about your current financial situation, making some goals and putting an action plan together will put you on the right track to having a successful retirement with less to worry about and more time to enjoy yourself.

I found an article in the December 2017/January 2018 edition of AARP magazine written by Michelle V. Rafter, that outlines some steps to get you started on your financial check up journey. Check it out by clicking the link below.

https://www.aarp.org/money/credit-loans-debt/info-2017/financial-checkup.html

May 2018 be your most financially fit year ever!

Samantha

Continue reading
  474 Hits
474 Hits

Tax Reform: Summary of Changes

President Trump signed the tax reform bill this morning. Most provisions are set to take effect in 2018, but many of those are also set to expire or sunset in 2025. Here's a summary of what we think are the major changes that will affect our clients. We will have a more in-depth analysis and summary in our year end newsletter.

1. Reductions in individual tax rates. The bill retains the current structure of seven investor tax brackets, but lowers five of them. It also includes the sunset provision, meaning it's a temporary arrangement from 2018 to 2025.
Here's the breakdown of the new vs. current marginal tax rates:

Current Marginal Tax Rate

Proposed Marginal Tax Rate

Income Level (Single Filers)

Income Level (Couples Filing Jointly)

10%

10%

$0 -- $9,525

$0 -- $19,050

15%

12%

$9,525 -- $38,700

$19,050 -- $77,400

25%

22%

$38,700 -- $82,500

$77,400 -- $165,000

28%

24%

$82,500 -- $157,500

$165,000 -- $315,000

33%

32%

$157,500 -- $200,000

$315,000 -- $400,000

35%

35%

$200,000 -- $500,000

$400,000 -- $600,000

39.60%

37%

$500,000 and up

$600,000 and up

2. Reduction in corporate tax rate to a maximum rate of 21% (a reduction from 35%). Also, corporate income earned abroad and brought back to the United States will be taxed between 8 and 15.5%, instead of the current 35%. These are permanent reductions.

3. Standard Deductions increasing nearly 90%. For married couples filing jointly, the standard deduction rises to $24,000 from $12,700; for single filers, it moves to $12,000 from $6,350.

4. Additional changes to Itemized Deductions. These vary, and some might be more impactful than others.

  • Personal exemption ending, but child tax credit increasing. The bill ends the personal exemption of $4,050 for you, your spouse, and your dependents; it doubles the child tax credit to $2,000 per dependent child under age 17.
  • Limits to state and local taxes ("SALT"). Under the bill, you may only deduct up to $10,000 in state and local taxes, including sales, income, and property taxes. This deduction was not previously subject to limitation.
  • Caps on mortgage interest. The bill allows mortgage interest deductions for current homeowners, but caps the interest deduction at $750,000 in mortgage debt for homes bought in 2018 and beyond, down from the $1 million limit in place now. It eliminates deductions for interest on home-equity loans, as well as deductions for moving expenses and employer-provided expense reimbursements (except for members of the military).
  • Expands medical deductions. Current law allows for deduction of medical expenses over 10% of adjusted gross income (AGI). The bill lowers the threshold to 7.5%.

5. Changes to estate planning.  The bill doubles the estate tax exemption to $10 million, but it's also indexed for inflation after 2011. The bill also calls for doubling the value threshold on the 40% levy on estates worth nearly $11 million for individuals and $22 million for couples. The estate tax exemption also has the sunset provision, meaning that the bill calls for a reversion back to current exemption amounts in 2026.

6. Charitable deductions. Although the current tax deductions stay in place, the doubling of the standard deduction to $24,000 essentially raises the threshold on deductibility. Taxpayers will have to itemize donations to get the benefit.

      From all of us at Asset Planning, Inc. we wish you a wonderful Holiday Season!


*Asset Planning, Inc. does not provide tax advice. We suggest clients consult with a tax-planning professional with regards to their personal circumstances.

Continue reading
  349 Hits
349 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
credit monitoring service account numbers Orange County Superior Court EEChecklist-Kits.pdf stockpilingchecklist.pdf check lists house sitter Mobile Banking Security Tips 23 andme Retirement Contribution Limits cell phone service provider tax season Legal robocalls Fox News story pet industry April 15 clone counterfeits earthquake app insurance policy offering insurance https ://seekingalpha Kraig Mathias credit score Medicare question 70 1/2. clients show support tax deadline National Ice Cream month identity theft April 11 July 4 insurance policies opt-out emergency kits president Trump April 18 2017. fun atmosphere team members Ice Cream Social estate planning direction 2017 IRA contributions 2018 IRA contributions paperwork clutter Orange County Kiplinger Letter IRS deadline asset Planning emergency kit Federal Trade Commission website home break-ins Facebook profile Financial Planning Magazine summer CERTIFIED FINANCIAL PLANNER exam phone official certification 2017 Equifax breach phishing scams retirement plans interest rates ice cream spam phone Medicare cell phone carriers operations manager Affordable Care Act Social Security estate planning home pet supplies investment statements flash drive Roth IRA hurricane Dorian D premiums cell phone SIM swap scam information Facebook IRA accounts contribution limit pets cell phone carriers offer banking Puerto Rico retirement accounts Shred paperwork notary services padlock fun facts FSA pet Amazon Supplemental Security Income 4 pm -8pm Wells Fargo customers life saver https :// toilet paper 20 year anniversary client portal credit card fraud June 29 cell phone provider self-help topics credit freeze credit card company app car loans home mortgages identity thieves trust Erin Nelsen debt ID card Healthcare settlement options Open Enrollment home security documents blog post portal Independence Day partner /owner spring cleaning Wells Fargo employees estate vacation card reader credit cards clients news coverage scams parking spots home emergency kit 2017 TD Ameritrade National LINC Conference birth certificates disaster areas privacy notices Joey Gonzales Asset Planning phishing sites company borrowing money memorial Day weekend vision screening breach chip-enabled EMV cards bottom line Victor Dergunov gap insurance checklists privacy settings policy VOIP landline phones Treasury Department CFP ® Medicare Part B premiums “ skimmer ”. phone companies information health care costs driver license Medicare plan Part D premiums . Medicare Part B home emergency preparedness kits Flexible Spending Account FEMA website text messages trustee increase executive order assets October 1 2020. relief efforts integral member Brexit vote Part B Notary Public non-prescripstion sunglasses retirement fees Social Security Administration emergency folder Open House rescue organizations consumer spending web address health care services California Lions Friends money prescription eyeglasses wells Fargo DNA test kits retirement planning family members cell phones Auto insurance media accounts drive /usb Medicare Advantage Two-Step Verification email notifications 401K illiegal robocallers ice cream event jury duty 900 number