PNC CENTER FOR FINANCIAL INSIGHT

Size: px
Start display at page:

Download "PNC CENTER FOR FINANCIAL INSIGHT"

Transcription

1 PNC CENTER FOR FINANCIAL INSIGHT Six Year-End Tax and Financial Planning Ideas A Focus on How Sweeping Changes are Affecting Planning. Now is the time to make sure you are taking full advantage of the extensive changes that will affect this year s tax returns. PNC Center for Financial Insight SM builds bridges from thought to action, creating practical, applicable strategies to help benefit you and your family. This article includes items for you to consider with your tax, legal, and accounting advisors. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. This year the wealth planning landscape has been affected not only by significant tax reform, but by the return of market volatility. We believe it is wise to review plans before year end to explore tactics that may reduce this year s taxes and enhance your wealth plans overall. Below we focus on strategies most affected by the events of this year and actions that would need to be taken by year end. Idea 1: Explore Tax-Loss Harvesting Market volatility has returned with a vengeance this year. 1 This sharp rise in volatility may mean you have incurred losses. You may be able to use them to decrease your 2018 tax bill through tax-loss harvesting. Tax-loss harvesting generates capital losses by selling assets that are currently worth less than what you paid for them. These losses are then used to offset capital gains recognized during the year. At some point in the future, the plan may be to repurchase the asset. If you recognize a loss, you must wait at least 31 days to repurchase the same asset or the tax loss will be disallowed. 2 ¾ Planning Point: If your capital losses exceed your capital gains, you can use up to $3,000 of the excess loss to offset other income. Any remaining capital losses can be carried forward to future years. 3 For example, if you sell an asset and recognize a $15,000 capital loss and have $10,000 of capital gains, you can then claim zero gains for the year. Additionally, you can use $3,000 of your remaining $5,000 in capital losses to offset other income in The remaining $2,000 may be used to reduce taxable income in Idea 2: Revisit Deferred Compensation Arrangements Before making 2019 elections to nonqualified deferred compensation arrangements, we believe it is important to have an analysis run to determine the attractiveness of deferring income and if so, the deferral timing. Deferred compensation plans allow highly compensated employees to postpone receiving a portion of their 1 In 2017, the S&P 500 ended the day either up or down 1% or more on eight occasions. This occurred 36 times in the first half of Internal Revenue Code (IRC) 1091(a). 3 IRC 1211(b)(1) and 1212(b)(1).

2 August income to a future year. The idea is to lower income levels during highearning years. The income is then paid out at a future date chosen by the employee, typically at a time when overall income, and its corresponding tax bracket, is lower. Additionally, during the deferral period the income may be invested in a selection of investments set by the plan provider and grow on a tax-deferred basis. If an employee leaves employment, the plan typically returns the participant s vested balance at that time. 4 Under The Tax Cuts and Jobs Act (TCJA) most taxpayers are now in lower tax brackets, but the lower tax rates are scheduled to expire at the end of This means that income deferred to 2026 and beyond may be subject to higher tax rates than would now apply. The decision as to whether to defer income, the timing of deferred compensation distributions, and changing existing election dates, if possible, is complex. It is impossible to know what future tax rates may be, though it is possible to project what income may be at the time the compensation is taken and how deferred compensation fits in with other available planning strategies. The Internal Revenue Service (IRS) requires deferred compensation elections to be completed prior to December 31, Many employers require elections to be finalized earlier. Idea 3: Double-Check Withholding Payments The IRS significantly reduced the withholding tables after the TCJA became law. As a result, the amount of federal tax withheld from your salary may be significantly less than in previous years. This lower withholding may not be enough to satisfy your federal tax liability. This means you may owe taxes, and you may also be subject to interest and penalties. The IRS has published a simplified withholding calculator that can provide a rough estimate of overall withholding and income taxes for ¾ Planning Point: By updating/ changing your W-4, your employer can adjust the amount withheld from your salary to cover any shortfall, negating potential interest and penalties. If you simply cut a check and pay the IRS, you may still be open to interest charges. ¾ Planning Point: If you are subject to taking required minimum distributions (RMDs) from a defined contribution plan, such as a 401(k) or IRA, it may make sense to increase the amount of tax withheld from the RMD to cover any tax payment shortfall. Just as with salary withholding, taxes withheld from RMDs can reduce or negate interest and penalty fees. Idea 4: Maximize the Benefit of Charitable Contributions Tax reform greatly increased the standard deduction and suspended or limited several itemized deductions beginning this year. This means that fewer people will benefit from itemizing. People with itemized deductions greater than or close to the standard deduction may want to consider maximizing the 4 The timing of payments is determined by the deferral agreement, subject to IRS requirements under IRC 409A. 5 First-time deferrals and performance-based compensation may have different deadlines under IRC 409(a)(4)(B). 6 This calculator should not replace a discussion with your tax advisor, but may provide a place to start the conversation.

3 August Year-End Planning Checklist Each year we believe it is important to review the following list of planning todos and strategies. Take RMDs Remember to take RMDs from traditional IRAs, 401(k)s, and 403(b)s. 7 Failure to do so may result in a hefty 50% federal tax penalty on any portion of the RMD not taken. Retirees generally are required to begin taking RMDs by April 1 of the year after they attain age 70-½. 8 Thereafter, RMDs must be taken every year by December 31. Make sure you have charitable receipts To claim an income tax deduction for a donation over $250, you must obtain a written acknowledgement of your donation from the charity. Donors need to maintain a copy of the transaction for donations less than $250. Evaluate annual exclusion gifts If you wish to transfer assets, consider doing so before year end. Every individual can make annual exclusion gifts of up to $15,000 per person to anyone without it counting against the lifetime gift exemption of $11.18 million. Married couples who elect to split gifts can gift up to $30,000 per donee. 9 The annual exclusion expires on December 31 and cannot be carried over into Consider discretionary trust distributions Trustees might want to consider, when permissible, distributing some trust income to beneficiaries if they are in a lower income tax bracket than the trust. For example, a trust reaches the 37% tax rate with taxable income of $12,500 while individuals reach this rate at taxable income of $500,000, or $600,000 for married filing jointly. Weigh deferring income Consider postponing the recognition of income until 2019 if it makes sense. For example, selling an asset in January will push the income, and the capital gain tax, into Minimize exposure to net investment income tax (NIIT) and Medicare surtax Some taxpayers may be subject to an additional 3.8% NIIT and a 0.9% Medicare surtax if their adjusted gross income (AGI) is greater than $200,000 or $250,000 if married filing jointly. 10 Review strategies to lower AGI, such as delaying recognition of income and maximizing contributions to tax-deferred accounts, including 401(k), simplified employee pensions and health savings accounts. 7 This includes Roth 401(k) and Roth 403(b) accounts as well. Roth IRA accounts do not require RMDs. 8 RMDs generally are not required from company-sponsored plans, including 401(k) and 403(b) plans, while the account owner is still employed with that company. See the article Required Minimum Distributions, produced by the PNC Center for Financial Insight, for additional details. 9 Both spouses must be U.S. citizens or residents. Gift tax returns must be filed to evidence gift splitting. 10 For the purposes of the NIIT, AGI is adjusted with respect to foreign income and the related foreign tax credit.

4 August benefit of their charitable contributions in Below are some strategies that may help you accomplish this. Consider cash Cash contributions to public charities, such as churches, hospitals, and schools, are deductible up to 60% of AGI while most contributions of appreciated securities are limited to 30% of AGI. 11 It may be more beneficial to gift cash. Factors such as your AGI, the amount you wish to contribute, and investment portfolio considerations need to be weighed. Bunching contributions This entails making larger contributions less often so you can accumulate deductions and itemize. For example, if a married couple (filing jointly) contributes $15,000 per year to charity, assuming no other itemized deductions, they will not exceed the $24,000 standard deduction and will not receive a tax benefit for their contributions. However, if they contribute $30,000 every other year, they should be able to itemize in the year they make the charitable contribution and benefit from an additional $6,000 deduction that year. ¾ Planning Point: A donor-advised fund (DAF) can be an effective vehicle when bunching charitable contributions. This is because you are eligible to take an income tax deduction in the year the contribution is made to the DAF, but there is no RMD that needs to be made in any given year. 12 The cost of a DAF should be factored into the decision if this is an option for you. Qualified Charitable Distributions (QCDs). Individuals aged 70-½ and older may make qualified distributions from their IRAs directly to qualified charities up to $100,000 annually. These distributions are not taxable federal income for the donor and count toward the IRA s RMD. 13 Particularly, for those who are no longer itemizing, a QCD is an attractive option to satisfy charitable goals tax efficiently. Idea 5: Look at Contributions to 529 Plans 529 plans can be an excellent way to save for educational expenses. The recent tax legislation has expanded their use to include distributions of up to $10,000 per year for elementary and secondary school tuition, transforming them from a college savings account to a lifelong educational savings vehicle. A unique feature of 529 plans is they allow donors to front-load accounts with up to five years of annual exclusion gifts. This means that in 2018 you can contribute up to $75,000 ($150,000 for a married couple) to a 529 plan and still qualify for annual exclusion gift treatment plans grow tax free and distributions for qualified educational expenses are also tax free. Most states offer a state tax deduction for 529 contributions. Note: Most states follow federal tax rules for 529 distributions, but not all. Confer with a tax advisor who understands the laws of your state to determine how these rules will affect you. 11 Additional limits may apply for appreciated property and other assets. IRC Refer to the article Donor-Advised Funds, produced by the PNC Center for Financial Insight, for additional details. 13 Refer to the article Qualified Charitable Distributions, produced by the PNC Center for Financial Insight, for additional details. 14 Contributions to a 529 plan will count as a gift to the beneficiary of that account. Maximizing contributions to a 529 plan means you cannot make annual exclusion gifts to or for that beneficiary for the next four years.

5 August Idea 6: Consider Accelerating Medical and Dental Expenses This year medical and dental expenses are deductible to the extent they exceed 7.5% of AGI. Beginning in 2019, these expenses must exceed 10% of AGI to be deductible. If you itemize and have large medical or dental expenses, consider paying these expenses in 2018 to the extent it makes sense. Medical and dental expenses include payments for medical or dental care for you, your spouse, or your dependents. Qualified expenses include payments for doctors or dentists, prescription drugs, health insurance premiums, certain longterm care premiums, 15 and other costs including health-related lodging and mileage. This year has been marked by significant change on all fronts. As year-end approaches, it is a good time to review wealth plans so they address and take advantage of the new tax environment. It is equally important to reflect on what is truly most important to you so that your plans can help achieve those goals. 15 Deductible premiums are limited based on age. See IRS Publication 502 Medical and Dental Expenses for details. For more information, please contact your Hawthorn advisor. The PNC Financial Services Group, Inc. ( PNC ) uses the marketing name Hawthorn, PNC Family Wealth to provide investment, wealth management, and fiduciary services and the marketing name PNC Center for Financial Insight SM to provide wealth planning education to individual clients through its subsidiary, PNC Bank, National Association ( PNC Bank ), which is a Member FDIC, and to provide specific fiduciary and agency services through its subsidiary, PNC Delaware Trust Company or PNC Ohio Trust Company. Standalone custody, escrow, and directed trustee services; FDIC-insured banking products and services; and lending of funds are also provided through PNC Bank. This report is furnished for the use of PNC and its clients and does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific investment objectives, financial situation, or particular needs of any specific person. Use of this report is dependent upon the judgment and analysis applied by duly authorized investment personnel who consider a client s individual account circumstances. Persons reading this report should consult with their PNC account representative regarding the appropriateness of investing in any securities or adopting any investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. The information contained in this report was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy, timeliness, or completeness by PNC. The information contained in this report and the opinions expressed herein are subject to change without notice. Past performance is no guarantee of future results. Neither the information in this report nor any opinion expressed herein constitutes an offer to buy or sell, nor a recommendation to buy or sell, any security or financial instrument. Accounts managed by PNC and its affiliates may take positions from time to time in securities recommended and followed by PNC affiliates. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC does not provide services in any jurisdiction in which it is not authorized to conduct business. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act ( Act ). Investment management and related products and services provided to a municipal entity or obligated person regarding proceeds of municipal securities (as such terms are defined in the Act) will be provided by PNC Capital Advisors. Securities are not bank deposits, nor are they backed or guaranteed by PNC or any of its affiliates, and are not issued by, insured by, guaranteed by, or obligations of the FDIC, the Federal Reserve Board, or any government agency. Securities involve investment risks, including possible loss of principal. Hawthorn, PNC Family Wealth is a registered service mark and PNC Center for Financial Insight is a service mark of The PNC Financial Services Group, Inc The PNC Financial Services Group, Inc. All rights reserved.

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT The PNC Center for Financial Insight SM builds bridges from thought to action, creating practical, applicable strategies to help benefit you and your family. Nine Year-End

More information

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT Tax Reform and Philanthropy: Exploring Why and How You Give The new tax law will have sweeping implications on charitable giving, creating a greater urgency to examine

More information

How the Trump Tax Proposals Might Affect Planning

How the Trump Tax Proposals Might Affect Planning How the Trump Tax Proposals Might Affect Planning On April 26, 2017, President Donald Trump presented the core principles of his proposal to significantly overhaul the Tax Code. We believe that from a

More information

Year-End Planning 2017

Year-End Planning 2017 Wealth Management Year-End Planning Executive Summary As we approach the end of, it is time to review traditional year-end planning decisions. We are aware of the significant changes in the tax code currently

More information

Looking Back on 2018

Looking Back on 2018 Year-end Planning 2018 Looking Back on 2018 As 2018 draws to a close, there is still time to reduce your 2018 tax bill and plan ahead for 2019. This letter highlights several potential year-end planning

More information

Arthur Lander C.P.A., P.C. A professional corporation

Arthur Lander C.P.A., P.C. A professional corporation A Arthur Lander C.P.A., P.C. A professional corporation 300 N. Washington St. #104 Alexandria, Virginia 22314 phone: (703) 486-0700 fax: (703) 527-7207 YEAR-END TAX PLANNING FOR INDIVIDUALS Once again,

More information

2018 Year-End Tax Planning Tips

2018 Year-End Tax Planning Tips 2018 Year-End Tax Planning Tips It s Never Too Early to Start Planning As the end of another year approaches, it s time to start thinking about ideas which may help lower your tax bill. When discussing

More information

2018 Year-End Tax Planning for Individuals

2018 Year-End Tax Planning for Individuals 2018 Year-End Tax Planning for Individuals There is still time to reduce your 2018 tax bill and plan ahead for 2019 if you act soon. This letter highlights several potential tax-saving opportunities for

More information

2016 YEAR- END TAX AND WEALTH TRANSFER PLANNING

2016 YEAR- END TAX AND WEALTH TRANSFER PLANNING Insights on... WEALTH PLANNING 2016 YEAR- END TAX AND WEALTH TRANSFER PLANNING Proactive year-end planning Suzanne L. Shier, Wealth Planning Practice Executive and Chief Tax Strategist/Tax Counsel October

More information

2017 Year-End Tax Reminders

2017 Year-End Tax Reminders 2017 Year-End Tax Reminders INCOME TAX Wealth Planning Income Tax Rates 1. The following federal tax rates now apply to most types of capital gains for taxpayers in the highest tax brackets: 39.6% (short-term),

More information

2018 Year-End Tax Reminders

2018 Year-End Tax Reminders 2018 Year-End Tax Reminders Family Office Resources Income Tax Beginning in 2018, the standard deduction for single filers is $12,000 (up from $6,500 in 2017) and $24,000 for married taxpayers who file

More information

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT Nine Planning Opportunities after Tax Reform The recently adopted tax reform legislation will have a substantial impact on family wealth management decisions. Here we provide

More information

Strategies to Help Your Heirs Enjoy More of Their Inheritance: Basis Planning

Strategies to Help Your Heirs Enjoy More of Their Inheritance: Basis Planning February 2019 Strategies to Help Your Heirs Enjoy More of Their Inheritance: Basis Planning Tax planning is becoming the new wealth transfer planning. Learn how basis planning may help lower capital gains

More information

Artwork and Your Legacy: Five Planning Options for Stewarding Your Collection

Artwork and Your Legacy: Five Planning Options for Stewarding Your Collection Artwork and Your Legacy: Five Planning Options for Stewarding Your Collection A center of excellence building bridges from thought to action, creating practical, applicable strategies to help benefit you

More information

Tax Planning Issues for 2017: 20 Ideas

Tax Planning Issues for 2017: 20 Ideas Tax Planning Issues for 2017: 20 Ideas Leon C. LaBrecque, JD, CPA, CFP, CFA LJPR Financial Advisors 5480 Corporate Drive, Suite 100 Troy, Michigan 48098 Phone: 248.641.7400 Fax: 248.641.7405 Email: leon.labrecque@ljpr.com

More information

Year End Tax Planning for Individuals

Year End Tax Planning for Individuals Year End Tax Planning for Individuals December 2015 To Our Clients and Friends: Every individual can develop a year-end tax planning strategy that reflects his or her situation. Our office can help you

More information

Medicare taxes for higher-income taxpayers

Medicare taxes for higher-income taxpayers Medicare taxes for higher-income taxpayers Many changes from the 2010 health care reform are now in effect Begin planning now You ll especially want to discuss these tax provisions with your Financial

More information

You may wish to carefully examine your records to determine if you may be missing any of these deductions.

You may wish to carefully examine your records to determine if you may be missing any of these deductions. 2018 tax planning and tax changes Re: Planning 2018: Tax Consequences for Self-Employed Individuals Dear Client: Owning your own business can be very rewarding, both personally and financially. Being the

More information

2018 TAX AND FINANCIAL PLANNING TABLES

2018 TAX AND FINANCIAL PLANNING TABLES 2018 TAX AND FINANCIAL PLANNING TABLES An overview of important changes, rates, rules and deadlines to assist your 2018 tax planning What you will see in this brochure Important Deadlines 2018 Income Tax

More information

2018 Options and Opportunities: Charitable Giving and the New Tax Rules

2018 Options and Opportunities: Charitable Giving and the New Tax Rules 2018 Options and Opportunities: Charitable Giving and the New Tax Rules Page 1 Single filers (2018 2025): Joint filers (2018 2025): Page 2 In 2017, the standard deduction combined with the personal exemption

More information

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT Responding to Tax Reform a Nonprofit Action Plan The new tax regime may have significant implications on charitable giving, creating a need for non-profit organizations

More information

Medicare taxes for higher-income taxpayers

Medicare taxes for higher-income taxpayers Medicare taxes for higher-income taxpayers Facts and planning considerations to help manage your tax liability Begin planning now You ll especially want to discuss these tax provisions with your Financial

More information

Your Guide to EFFECTIVE GIVING After Tax Reform

Your Guide to EFFECTIVE GIVING After Tax Reform Your Guide to EFFECTIVE GIVING After Tax Reform In December 2017 Congress enacted the most comprehensive tax law changes in more than 30 years. The goal of the legislation was to reduce taxes while simplifying

More information

Year-End Tax Tips for Individuals

Year-End Tax Tips for Individuals Year-End Tax Tips for Individuals New tax legislation has brought greater certainty to year-end planning, but also created new challenges. There is still time to set up an appointment for year-end planning.

More information

LAST CHANCE 2017 INCOME TAX MINIMIZATION TIPS

LAST CHANCE 2017 INCOME TAX MINIMIZATION TIPS LAST CHANCE 2017 INCOME TAX MINIMIZATION TIPS Presented by: James J. Holtzman, CFP Wealth Advisor and Shareholder with Legend Financial Advisors, Inc. JAMES J. HOLTZMAN, CFP James J. Holtzman, CFP, is

More information

Client Letter: Year-End Tax Planning for 2018 (Individuals)

Client Letter: Year-End Tax Planning for 2018 (Individuals) Client Letter: Year-End Tax Planning for 2018 (Individuals) Just as the daylight hours are getting shorter, so is the time for fine tuning any last-minute strategies to lower your 2018 tax bill. Unlike

More information

YOUR GUIDE TO IDENTIFYING YOUR TAX RETURN OPPORTUNITIES

YOUR GUIDE TO IDENTIFYING YOUR TAX RETURN OPPORTUNITIES YOUR GUIDE TO IDENTIFYING YOUR TAX RETURN OPPORTUNITIES 2 At Transamerica, we re committed to providing you with the tools and information you need to make the right financial decisions. IRS Form 1040

More information

2016 Year End Tax Planning For Individuals

2016 Year End Tax Planning For Individuals Dear Client, Hard as it is to believe, another year is rapidly drawing to a close. Therefore, now is a good time to review possible steps to take to minimize your 2016 potential tax liability. December

More information

Individual Year-End Tax Planning for 2016

Individual Year-End Tax Planning for 2016 Individual Year-End Tax Planning for 2016 It is getting to be that time of year where we should meet to review your tax situation for 2016. Proper year-end planning can help alleviate any unnecessary tax

More information

2017 INDIVIDUAL TAX PLANNING

2017 INDIVIDUAL TAX PLANNING 2017 INDIVIDUAL TAX PLANNING We hope that you are looking forward to the Holiday Season. It is hard to believe that it is mid-december and this year is quickly ending. If you ve been following the news

More information

Client Tax Letter Tax Saving and Planning Strategies from your Trusted Business Advisor

Client Tax Letter Tax Saving and Planning Strategies from your Trusted Business Advisor Client Tax Letter Tax Saving and Planning Strategies from your Trusted Business Advisor sm More Certainty for Year-End Tax Planning Recently, year-end tax planning has been challenging. Many tax code provisions

More information

Before we get to specific suggestions, here are two important considerations to keep in mind.

Before we get to specific suggestions, here are two important considerations to keep in mind. To Our Clients and Friends As we get closer to the end of yet another year, it s time to tie up the loose ends and implement tax saving strategies. With the fate of many of the long favored tax breaks

More information

Tax Planning Letter

Tax Planning Letter 2014-2015 Tax Planning Letter Dear Valued Client: Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks that expired at the end of 2013. Some

More information

GMS SURGENT 2014 YEAR-END TAX SAVING TIPS

GMS SURGENT 2014 YEAR-END TAX SAVING TIPS GMS SURGENT 2014 YEAR-END TAX SAVING TIPS As the days on the calendar grow short and the holiday season gets into full swing, we at GMS Surgent would like to provide you with some valuable ideas to reduce

More information

Year-End Tax Planning Summary December 2018

Year-End Tax Planning Summary December 2018 Year-End Tax Planning Summary December 2018 Overview Tax planning at year-end always presents opportunities, especially in a year that involves significant new tax legislation. This memorandum outlines

More information

2018 year-end planning ideas

2018 year-end planning ideas The new tax environment creates even more reasons to start your planning early. 2018 year-end planning ideas When it comes to tax planning, procrastination can be costly; the deadline for implementing

More information

Year-end Tax Moves for 2017

Year-end Tax Moves for 2017 Year-end Tax Moves for 2017 Holloway Wealth Management One of our main goals as holistic financial advisors is to help our clients recognize tax reducing opportunities within their investment portfolios

More information

TAX FACTS. and Tables 2018 AT A GLANCE

TAX FACTS. and Tables 2018 AT A GLANCE TAX FACTS and Tables 2018 AT A GLANCE Are you making smart financial decisions that can help reduce your taxes The first step in reducing the amount of tax you pay on your savings and personal finances

More information

TAX FACTS. and Tables 2018 AT A GLANCE

TAX FACTS. and Tables 2018 AT A GLANCE TAX FACTS and Tables 2018 AT A GLANCE Are you making smart financial decisions that can help reduce your taxes The first step in reducing the amount of tax you pay on your savings and personal finances

More information

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT A Window of Opportunity: Taking Advantage of Low Interest Rates Low interest rates can magnify the benefits of certain wealth transfer strategies. Rates have been moving

More information

Taylor Financial Group s Monthly Planning Letter

Taylor Financial Group s Monthly Planning Letter Taylor Financial Group s Monthly Planning Letter December 017 Year-End Planning December is Year-End Planning Month at Taylor Financial Group We have prepared this short newsletter to provide you with

More information

Before we get to specific suggestions, here are two important considerations to keep in mind.

Before we get to specific suggestions, here are two important considerations to keep in mind. November 1, 2017 To Our Clients and Friends: As we get closer to the end of yet another year, it s time to tie up the loose ends and implement tax saving strategies. This has been an interesting year in

More information

2018 Tax Planning & Reference Guide

2018 Tax Planning & Reference Guide 2018 Tax Planning & Reference Guide The 2018 Tax Planning & Reference Guide is designed to be a reference only and is not intended to provide tax advice. Please consult your professional tax advisor prior

More information

2014 YEAR-END TAX PLANNING

2014 YEAR-END TAX PLANNING Page 1 of 5 2014 YEAR-END TAX PLANNING Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks which expired at the end of 2013. Some of these

More information

Tax Planning Considerations for 2015

Tax Planning Considerations for 2015 Tax Planning Considerations for 2015 Most strategies that could have an impact on your taxes need to be made by December 31 if you want them reflected on your 2015 tax return. Executive summary As the

More information

Using the 1040 to Find Planning Opportunities

Using the 1040 to Find Planning Opportunities Overview Income tax planning is an important aspect of your overall financial picture. The following tables provide a list of some of the items contained in an individual income tax return and a brief

More information

Deciphering Tax Law Changes to Retirement Plans

Deciphering Tax Law Changes to Retirement Plans Deciphering Tax Law Changes to Retirement Plans More opportunities to benefit from retirement planning laura ferrino, cfp, ctfa, clu, ccps Vice President and Wealth Strategist Wilmington Trust, N.A. key

More information

2017 Year-End Tax Planning

2017 Year-End Tax Planning 2017 Year-End Tax Planning If you've been following the news out of Washington, you probably know that for the first time in decades, tax reform is a real possibility. Given that both the House and the

More information

Ideas for Increasing Nonbusiness Deductions

Ideas for Increasing Nonbusiness Deductions December 16, 2015 To Our Clients and Friends: Year-end planning will be challenging again this year. Unless Congress acts, a number of popular deductions and credits that expired at the end of 2014 will

More information

Year-end Tax Planning Letter

Year-end Tax Planning Letter December 2011 Year-end Tax Planning Letter To Our Clients and Friends: As we approach year end, it s again time to focus on last-minute tax planning changes that you might want to consider to benefit you

More information

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT Business Planning Opportunities after Tax Reform The recently enacted tax reform legislation contains a substantial number of business-related changes to the Internal Revenue

More information

IRS releases 2019 inflation-adjusted numbers

IRS releases 2019 inflation-adjusted numbers Tax Topics 11/30/18 2018-11 Blanche Lark Christerson Managing Director, Senior Wealth Strategist IRS releases 2019 inflation-adjusted numbers On November 1 st, the IRS released its inflation-adjusted numbers

More information

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT Artwork and Your Legacy: Stewarding Your Collection Art collections are curated with passion and care. They often represent an important part of a family s legacy, making

More information

TAX FACTS. and Tables 2017 AT A GLANCE

TAX FACTS. and Tables 2017 AT A GLANCE TAX FACTS and Tables 2017 AT A GLANCE Are you making smart financial decisions that can help reduce your taxes The first step in reducing the amount of tax you pay on your savings and personal finances

More information

W H E R E T R U S T I S A N A S S E T

W H E R E T R U S T I S A N A S S E T WHERE TRUST IS AN ASSET Sanderson Wealth Management Sanderson Wealth Management is a completely independent, registered investment adviser and CPA firm headquartered in Buffalo, NY. As truly independent

More information

IMPACT OF THE ELECTION President-Elect Trump proposes significant changes to the tax law including:

IMPACT OF THE ELECTION President-Elect Trump proposes significant changes to the tax law including: December 2016 To Our Clients and Friends: While many of you are making plans for year-end holidays, what should not be overlooked this time of year is year-end tax planning, especially considering the

More information

Time is running out to make important planning moves before the year s end, so don t delay.

Time is running out to make important planning moves before the year s end, so don t delay. 2015 Year-end tax planning Time is running out to make important planning moves before the year s end, so don t delay. The changes in various tax provisions brought about with the 2012 Tax Act continue

More information

UMB Bank, n.a. Universal IRA Information Kit

UMB Bank, n.a. Universal IRA Information Kit UMB Bank, n.a. Universal IRA Information Kit INTRODUCTION: What is the Difference between a Traditional IRA and a Roth IRA? With a traditional IRA, an individual may be able to deduct the contribution

More information

2017 Year-end Tax Planning Letter

2017 Year-end Tax Planning Letter To Our Clients and Friends: 2017 Year-end Tax Planning Letter As we get closer to the end of yet another year, it s time to tie up the loose ends and implement tax saving strategies. This has been an interesting

More information

2018 tax planning guide

2018 tax planning guide Advanced Planning 2018 tax planning guide We are committed to helping you confirm that your current and future tax strategy supports your larger financial goals. Advice. Beyond investing. Your financial

More information

Year-End Tax Planning Summary December 2015

Year-End Tax Planning Summary December 2015 Year-End Tax Planning Summary December 2015 Overview Thanks to the continued political gridlock in Washington, 2015 did not see comprehensive tax reform. However, on December 18th, Congress passed the

More information

What s New That Affects You? A Snapshot of Tax Law for Your Return

What s New That Affects You? A Snapshot of Tax Law for Your Return What s New That Affects You? A Snapshot of Tax Law for Your Return As is typical for an election year, no big tax changes that will affect 2016 tax returns came out of Washington. However, there has been

More information

Tax Planning with Qualified Charitable Distributions

Tax Planning with Qualified Charitable Distributions Tax Planning with Qualified Charitable Distributions Understand how to benefit from this tax-saving tool GIVING WITH GREATER BENEFITS Are you age 70 1/2 or higher and subject to required minimum distributions

More information

Tax-Efficient Investing

Tax-Efficient Investing Tax-Efficient Investing Creating a plan to help manage, defer, and reduce taxes Taking control: Developing an ongoing tax strategy As you save and invest for retirement, there are key disciplines that

More information

2018 Year-End Tax Planning

2018 Year-End Tax Planning 2018 Year-End Tax Planning October 2018 1101 Wootton Parkway Suite 400 Rockville, Maryland 20852 Phone: 301.924.2160 Fax: 202.204.6322 2 Year-End Tax Planning - Overview As year end approaches, it's a

More information

2017 Year-End Income Tax Planning for Individuals December 2017

2017 Year-End Income Tax Planning for Individuals December 2017 2017 Year-End Income Tax Planning for Individuals December 2017 9605 S. Kingston Ct., Suite 200 Englewood, CO 80112 T: 303 721 6131 www.richeymay.com Introduction With year-end approaching, this is the

More information

YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format

YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format 2017 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format UPDATED November 2, 2017 www.cordascocpa.com 2017 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS INTRODUCTION With year-end approaching, this

More information

*Brackets adjusted for inflation in future years Long Term Capital Gains & Dividends Taxable income up to $413,200/$457,600 0% - 15%*

*Brackets adjusted for inflation in future years Long Term Capital Gains & Dividends Taxable income up to $413,200/$457,600 0% - 15%* Income Tax Planning Overview The American Taxpayer Relief Act of 2012 extended prior law for certain income tax rates; however, it also increased income tax rates on upper income earners. Specifically,

More information

DMJ & Co., PLLC presents Year-End Tax Planning

DMJ & Co., PLLC presents Year-End Tax Planning 2017 DMJ & Co., PLLC presents Year-End Tax Planning Thank you! 2017 marks the 68 th year of DMJ s service to its clients. We remain humbled by the support and faith that this represents from you, our trusted

More information

Financial Intelligence

Financial Intelligence Financial Intelligence Volume 14 Issue 1 Tax Changes and Planning Considerations in 2018 and Beyond by Brent Yanagida, CFP, EA On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs

More information

YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format

YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format 2016 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format UPDATED November 2, 2016 www.cordascocpa.com INTRODUCTION 2016 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS It s that time of year again.

More information

WEALTH CARE KIT SM. Income Tax Planning. A website built by the National Endowment for Financial Education dedicated to your financial well-being.

WEALTH CARE KIT SM. Income Tax Planning. A website built by the National Endowment for Financial Education dedicated to your financial well-being. WEALTH CARE KIT SM Income Tax Planning A website built by the dedicated to your financial well-being. As the joke goes, figuring out your taxes is pretty easy just add up how much money you made last year

More information

THE AGENDA YEAR END TAX PLANNING

THE AGENDA YEAR END TAX PLANNING YEAR END TAX PLANNING TUESDAY, DECEMBER 8, 2015 PRESENTED BY: JOE CAWLEY, CPA, PRINCIPAL-JOECAWLEY@BSSF.COM JOHN WEIDMAN, CPA, PRINCIPAL-JOHNWEIDMAN@BSSF.COM PHONE NUMBER-(717)761-7171 1 THE AGENDA Part

More information

TAX GUIDE PLANNING YEAR-ROUND STRATEGIES TO MAKE THE TAX LAWS WORK FOR YOU

TAX GUIDE PLANNING YEAR-ROUND STRATEGIES TO MAKE THE TAX LAWS WORK FOR YOU 2018 2019 TAX PLANNING GUIDE YEAR-ROUND STRATEGIES TO MAKE THE TAX LAWS WORK FOR YOU It s a new day for tax planning On December 22, 2017, the most sweeping tax legislation since the Tax Reform Act of

More information

Year-End Tax and Financial Planning Ideas

Year-End Tax and Financial Planning Ideas Private Wealth Management Products & Services November 2016 Year-End Tax and Financial Planning Ideas Presidential election leads to speculation on what s to come For the last couple of years, we ve written

More information

2018 year-end tax guide

2018 year-end tax guide 2018 year-end tax guide It s a new day for tax planning CONTENTS Year-to-date review 2 Executive compensation 8 Investing 11 Real estate 17 Business ownership 21 Charitable giving 24 Family and education

More information

2013 TAX AND FINANCIAL PLANNING TABLES. An overview of important changes, rates, rules and deadlines to assist your 2013 tax planning.

2013 TAX AND FINANCIAL PLANNING TABLES. An overview of important changes, rates, rules and deadlines to assist your 2013 tax planning. 2013 TAX AND FINANCIAL PLANNING TABLES An overview of important changes, rates, rules and deadlines to assist your 2013 tax planning. WHAT YOU WILL SEE IN THIS BROCHURE 2013 Income Tax Changes Tax Rates

More information

PNC CENTER FOR FINANCIAL INSIGHT

PNC CENTER FOR FINANCIAL INSIGHT PNC CENTER FOR FINANCIAL INSIGHT PNC Center for Financial Insight SM builds bridges from thought to action, creating practical, applicable strategies to help benefit you and your family. Contributing Author:

More information

TAX FACTS AND TABLES at a glance

TAX FACTS AND TABLES at a glance TAX FACTS AND TABLES 2013 at a glance Are you making smart investment decisions that can help Reduce your taxes The first step in reducing the amount of tax you pay on your investments is to get the facts.

More information

LAST CHANCE TO REDUCE 2018 INCOME TAXES

LAST CHANCE TO REDUCE 2018 INCOME TAXES LAST CHANCE TO REDUCE 2018 INCOME TAXES Presented by: James J. Holtzman, CFP Wealth Advisor and Shareholder with Legend Financial Advisors, Inc. JAMES J. HOLTZMAN, CFP James J. Holtzman, CFP, is a Wealth

More information

Individual Retirement Account (IRA) Information Kit

Individual Retirement Account (IRA) Information Kit Individual Retirement Account (IRA) Information Kit (Effective January 1, 2018) Pear Tree Funds 55 Old Bedford Road Suite 202 Lincoln, MA 01773 1-800-326-2151 PEAR TREE FUNDS Individual Retirement Account

More information

Year-end Tax Moves for 2015

Year-end Tax Moves for 2015 Year-end Tax Moves for 2015 PRESENTED BY: One of our major goals is to help our clients identify opportunities that coordinate tax reduction with their investment portfolios. In order to achieve this goal,

More information

Tax Report Year-End Tax Planning on the Verge of Tax Reform

Tax Report Year-End Tax Planning on the Verge of Tax Reform Tax Report QUARTER 4, 2017 2017 Year-End Tax Planning on the Verge of Tax Reform Wealth management tends to be both complex and interdependent, and almost every financial action may have tax consequences.

More information

Tax-cutting time is ticking away. Review options for accelerating income. Dear Clients and Friends,

Tax-cutting time is ticking away. Review options for accelerating income. Dear Clients and Friends, Dear Clients and Friends, Taxes are going to be a major issue for the rest of 2012 and for much of 2013. On January 1, 2013, the country faces what Federal Reserve Chairman Ben Bernanke has called a fiscal

More information

YEAR-END TAX PLANNING OPPORTUNITIES

YEAR-END TAX PLANNING OPPORTUNITIES YEAR-END TAX PLANNING OPPORTUNITIES These important tax and financial planning moves can help prepare you for the upcoming tax season and better align your portfolio with your short- and long-term goals.

More information

2017 YEAR-END TAX AND WEALTH TRANSFER PLANNING

2017 YEAR-END TAX AND WEALTH TRANSFER PLANNING 2017 YEAR-END TAX AND WEALTH TRANSFER PLANNING Tax reform is in progress, and Congress and the White House are pushing for a historic tax overhaul. We have not seen major tax reform legislation since President

More information

Tax Planning Guide. Year-round strategies to make the tax laws work for you

Tax Planning Guide. Year-round strategies to make the tax laws work for you 2018 2019 Tax Planning Guide Year-round strategies to make the tax laws work for you Dear Clients and Friends, Commitment influences behavior, and behavior determines results. That s a phrase from Even

More information

Table of contents. 2 Federal income tax rates 12 Required minimum distributions. 4 Child credits 13 Roth IRAs

Table of contents. 2 Federal income tax rates 12 Required minimum distributions. 4 Child credits 13 Roth IRAs 2017 tax guide Table of contents 2 Federal income tax rates 12 Required minimum distributions 4 Child credits 13 Roth IRAs 5 Taxes: estates, gifts, Social Security 15 SEPs, Keoghs 6 Rules on retirement

More information

Certified Public Accountants and Consultants. Dear Client:

Certified Public Accountants and Consultants. Dear Client: Dear Client: As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Factors that compound the planning challenge

More information

2017 YEAR-END CHECKLIST. YEO & YEO CPAs & BUSINESS CONSULTANTS YEO & YEO. yeoandyeo.com

2017 YEAR-END CHECKLIST. YEO & YEO CPAs & BUSINESS CONSULTANTS YEO & YEO. yeoandyeo.com 2017 YEAR-END YEO & YEO TAX CPAs & BUSINESS PLANNING CONSULTANTS CHECKLIST YEO & YEO CPAs & BUSINESS CONSULTANTS yeoandyeo.com As the end of the year approaches, it is a good time to think of planning

More information

Year-End Tax Planning Letter

Year-End Tax Planning Letter 2013 Year-End Tax Planning Letter 54 North Country Road Miller Place, NY 11764 (877) 474-3747 or (631) 474-9400 www.ceschinipllc.com Introduction Tax planning is inherently complex, with the most powerful

More information

Year-End Tax and Financial Planning Ideas

Year-End Tax and Financial Planning Ideas Year-End Tax and Financial Planning Ideas November 6, 2017 by Tim Steffen Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

More information

Helpful Information for Filing 2018 Income Taxes and Proactive Tax Planning for 2019

Helpful Information for Filing 2018 Income Taxes and Proactive Tax Planning for 2019 Helpful Information for Filing 2018 Income Taxes and Proactive Tax Planning for 2019 Tax planning should always be a key focus when reviewing your personal financial situation. One of our goals as financial

More information

Tax Reform Aftermath: New Guidance for Taxpayers

Tax Reform Aftermath: New Guidance for Taxpayers Viewpoint ANDREW H. FRIEDMAN & JEFFREY B. BUSH, THE WASHINGTON UPDATE MARCH 2019 Tax Reform Aftermath: New Guidance for Taxpayers Since Congress passed the sweeping Tax Cuts and Jobs Act (the Act ) at

More information

Year-End Tax Moves for 2016

Year-End Tax Moves for 2016 Year-End Tax Moves for 2016 One of our major goals is to help our clients identify opportunities that coordinate tax reduction with their investment portfolios. In order to achieve this goal, we stay current

More information

Janus Universal IRA. Disclosure Statement & Custodial Agreement

Janus Universal IRA. Disclosure Statement & Custodial Agreement Janus Universal IRA Disclosure Statement & Custodial Agreement Janus Universal Individual Retirement Account Disclosure Statement Part One: Description of Traditional IRAs SPECIAL NOTE State Street Bank

More information

President Obama's 2016 Federal Budget Proposal

President Obama's 2016 Federal Budget Proposal President Obama's 2016 Federal Budget Proposal March 10, 2015 by Tim Steffen On the heels of his first State of the Union address to the nation after the mid-term elections, President Obama released his

More information

Year-End Tax Planning Newsletter 2012

Year-End Tax Planning Newsletter 2012 Year-End Tax Planning Newsletter 2012 Dear Client: Year-end planning is a bigger challenge this year than in past years because, unless Congress acts, tax rates will go up next year, many more individuals

More information

*Brackets adjusted for inflation in future years.

*Brackets adjusted for inflation in future years. Income Tax Planning Overview The American Taxpayer Relief Act of 2012 extended prior law for certain income tax rates; however, it also increased income tax rates on upper income earners. Specifically,

More information

What the New Tax Laws Mean to You

What the New Tax Laws Mean to You What the New Tax Laws Mean to You The American Taxpayer Relief Act of 2012 and other 2013 tax provisions January 2013 White Paper AN OVERVIEW OF THE AMERICAN TAXPAYER RELIEF ACT OF 2012 AND OTHER 2013

More information