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Tax Planning Archives | Page 3 of 4 | Wealthspire Advisors

tax law changes

What You Need to Know About the New AMT

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The AMT remains in-force following the Tax Cuts and Jobs Act (TCJA), but it will impact far fewer taxpayers beginning this year. This is welcome news for many households that are concerned about the $10,000 cap on state and local tax deductions. The alternative minimum tax was enacted in 1969 as a parallel tax system to ensure a small group of high income earners paid some federal tax. The idea was to disallow certain types of tax-free income that millionaires were privy too. However, by last year, approximately five million households were affected – many of them had annual incomes…
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tax law changes

Tax Reform Brings Changes to Popular Deductions

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Mortgage Interest and Charitable Contributions With 2017 taxes complete for most families, we can turn our attention to the changes in store for 2018. The Tax Cuts and Jobs Act of 2017, passed into law in December, represents significant new changes that will affect many families. We plan to explore a number of issues related to this new tax law in future blogs.  Here I’d like to look at two significant changes to the deductions many people take on their tax return – mortgage interest and charitable gifts.  Please note that though we as a firm have a policy to…
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early 401(k) withdrawals

Early 401(k) Withdrawals: What You Need to Know

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401(k) plans are designated as tax-efficient retirement savings vehicles, with the idea that funds contributed will be used only to fund retirement. Following the rules of your 401(k) means you can enjoy pre-tax contributions and tax-deferred growth that maximize your assets later in life. That said, instances can come up where you may wonder how easily you could access those funds in a pinch. Individuals thinking about early withdrawals from their 401(k) accounts should know that this process can severely limit the growth of your portfolio and subjects you to penalties. Here we examine what those penalties are and under…
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tax law changes

After Tax Reform: What Will Your 1040 Look Like?

By and Blog
One of the most extensive tax code overhauls in decades is now law. Below is a brief outline of some of the major changes you may see on your Form 1040 for 2018 due to this tax reform (remember these changes have almost no impact on your 2017 return): Income Tax Rates and Brackets: The number of income tax brackets remains steady at seven, although some income shifted into lower brackets. Click here for a breakdown of the new brackets. Below are a few examples of how the tax reform would impact your 2018 return: For example, for a married…
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A Look at the New 20% Pass-Through Income Deduction in Action

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Imagine a successful paper sales company, Dunder Mifflin, Inc. (a C corporation). In 2017, Dunder Mifflin had taxable income of $3MM, resulting in an effective federal corporate tax rate of 34%. In addition, since corporations are double-taxed, distributions will be subject to another layer of tax in the hands of individual shareholders. Dunder Mifflin’s local competitor, Prince Paper LLC, is a family business owned equally by Mr. and Mrs. Prince and their adult son, Junior. Prince Paper also employs one receptionist and two warehouse workers. Prince Paper is treated as a pass-through entity for tax purposes, with each of the…
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tax law changes

Tax Reform Update – Considerations Before Year End

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On December 15th, the House and Senate Conference Committee released a Conference Agreement that lays out the final terms of the tax reform bill. The Senate passed a final version of the bill on December 19th, and the House is expected to approve the updated terms sometime today. Once the bill has been finalized, President Trump will sign the bill into law – a move that is expected to happen before year-end. If passed, however, several key pieces of the legislation will expire by January 1, 2026. Below are some of the bill’s highlights, as well as items to take…
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Creating A Better Future: Gifting Strategies for Your Wealth

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Ensuring your money is passed on in the manner you desire is important for individuals who have amassed considerable assets during their lifetime. In addition to establishing a financial foundation for future generations, creating an informed plan to pass on your wealth can greatly reduce your overall income tax burden and save on estate taxes in the future. A financial advisor is prepared to walk you through the strategies that will maximize the continuity of your wealth while minimizing your tax burden. Here are a few strategies for passing on your wealth. Utilize Annual Exclusion Gifts to Transfer Smaller Amounts…
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year-end tax

2017 Year-End Tax Planning and Reporting Call

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During our 2017 year-end tax planning call, Michael Delgass, Managing Director, and Nicole Hart, Senior Vice President of Trusts & Estates, cover a number of important topics, including: Income tax planning, specifically noting that this year so far has presented fewer opportunities for tax-loss harvesting than 2016 Retirement planning, including Required Minimum Distributions (RMDs), Roth IRA conversions, and the establishment of other qualified plans Charitable giving strategies and donor-advised fund deadlines Estate and gift tax planning A recording of the call is below.  
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Investing Tax Efficiently

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There are many investment strategies that offer ways to grow your income and wealth over a long period. Between stocks, bonds, real estate, and countless other investment choices, portfolios can be created that are tailored to specific preferences and goals. At the same time, these options are all united by one common thread: at one point or another, these investments will likely become a source of income, and therefore subject to Uncle Sam’s tax code. Benjamin Franklin famously pointed out that life’s only certainties were death and taxes, and while this still holds true, today’s tax code does offer some…
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