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
  303 Hits
303 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
  214 Hits
214 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
Notary Public IRA accounts relief efforts Fox News story tax season portal Social Security insurance policies fun facts home security Facebook profile 70 1/2. investment statements Orange County prescription eyeglasses Supplemental Security Income wells Fargo parking spots driver license drive /usb California Lions Friends credit card company Wells Fargo employees bottom line 20 year anniversary increase paperwork clutter money earthquake app Medicare question house sitter April 18 2017. Affordable Care Act interest rates Brexit vote 2017 TD Ameritrade National LINC Conference home borrowing money pet retirement accounts documents privacy notices Puerto Rico ice cream event banking privacy settings 4 pm -8pm president Trump insurance policy Open Enrollment pet industry April 11 asset Planning Wells Fargo customers estate card reader trustee birth certificates rescue organizations Healthcare Kraig Mathias home break-ins identity thieves vacation Medicare Part B fees estate planning Treasury Department CERTIFIED FINANCIAL PLANNER exam Victor Dergunov Medicare summer debt pets “ skimmer ”. pet supplies gap insurance credit card fraud ID card Roth IRA jury duty notary services home mortgages Independence Day credit score 2017 IRA contributions Mobile Banking Security Tips emergency folder opt-out October 1 2020. policy client portal DNA test kits Open House memorial Day weekend flash drive clients retirement consumer spending VOIP landline phones information Facebook June 29 account numbers credit cards 401K Legal robocalls clients show support Social Security Administration vision screening contribution limit chip-enabled EMV cards illiegal robocallers disaster areas July 4 official certification Shred paperwork credit freeze Two-Step Verification identity theft Auto insurance emergency kit Orange County Superior Court phishing scams spring cleaning 23 andme executive order https ://seekingalpha FEMA website non-prescripstion sunglasses car loans trust assets D premiums National Ice Cream month retirement planning clone counterfeits IRS deadline