Year-End Tax and Financial Planning

Transcription

1 Year-End Tax and Financial Planning December, 2015 A year withut change prvides a nice respite. Will it last? This is getting t be a habit. Fr the secnd year in a rw, things have been very quiet n the tax law frnt, at least fr individuals. There was n significant tax legislatin, and n significant IRS rulings. There were tw Supreme Curt rulings with tax implicatins this year, and while bth were imprtant neither resulted in sweeping law changes. One decisin reaffirmed sectins f the health care act; the ther said that all states must recgnize same-sex marriages perfrmed in ther states. As in the last cuple years, 2015 pened with the expiratin f a variety f tax breaks that nly a few weeks earlier had been extended retractively fr This includes making charitable gifts frm IRAs, the deductin fr teacher classrm expenses, and the exclusin f mrtgage debt frm incme. These rules all remain expired as f mid-nvember, but there is widespread hpe that they ll be extended retractively again by the end f the year. The majrity f this inactin is because Cngress and the President are unable t agree n the principal f any tax refrm ne side is fcused n raising additinal revenue, the ther n bradening the tax base. Anther cause f this inactivity, at least in the mst recent mnths, is that pliticians are already beginning t fcus n the 2016 Presidential electin. That distractin is nly ging t becme mre prnunced as we head int 2016, s realistically the best chance fr any significant tax legislatin is prbably after next fall s electin. Even thugh the federal tax cde is relatively unchanged, that desn t mean taxpayers will have a cnsistent tax experience frm year-t-year. The ld standbys f defer incme/accelerate deductins still hld true in mst cases, but n strategy always applies fr all taxpayers. Taxpayers whse incme will fluctuate significantly between 2015 and 2016 due t jb change, retirement, sale f a business, etc. shuld cnsider perhaps different year-end strategies. Remember als that tax planning is nt dne in a ne-year vacuum. The decisin t accelerate r defer incme r deductins, fr example, shuld be dne with an eye twards the tax impact ver bth this and next year. Lastly, many states have been mre active in adjusting their tax cde, and thse changes shuld be cnsidered in the cntext f year-end tax planning. The belw list f year-end tax and financial planning strategies is a starting pint t discuss with yur Financial Team alng with a tax cnsultant. While investment decisins shuldn t be driven entirely by tax issues, there are instances where sund investment decisins can be made that will decrease an investr s verall tax liability.

2 Planning fr Capital Gains & Lsses Deciding t sell a prtfli psitin shuld be based primarily n the psitin s investment merits rather than purely the tax implicatins. Hwever, understanding the implicatins f that sale can help drive the timing f a transactin. Unfrtunately, determining the tax impact f realizing a gain r lss can be very cmplicated thanks t multiple tax rates, as well as the Net Investment Incme tax. Fr 2015, taxpayers in the tw lwest tax brackets will cntinue t enjy tax-free lng-term capital gains (assets held mre than ne year). While that desn t mean lw-incme taxpayers can have an unlimited amunt f tax-free gains, it des prvide a planning pprtunity fr thse taxpayers. Taxpayers wh find themselves in thse lwer rdinary tax brackets fr 2015 (taxable incme belw $74,900 fr cuples and $37,450 fr singles) shuld cnsider realizing sme tax-free gains this year. Hwever, they shuld be sure t wrk with a tax advisr as there are rules limiting the verall benefit. Once taxpayers exceed thse incme levels, lng-term gains will be subject t a 15% tax rate. Taxpayers reaching the highest rdinary tax bracket are subject t a 20% tax rate n their lng-term capital gains. This rate applies fr cuples with taxable incme ver $464,850 and singles ver $413,200 in Lastly, cuples with Mdified Adjusted Grss Incme (MAGI) abve $250,000 fr 2015 ($200,000 fr singles) will als we a 3.8% tax n their investment incme ver thse threshlds. Because MAGI is always equal t r greater than taxable incme, taxpayers culd be subject t this tax even thugh their taxable incme ends up lwer than this threshld. Als, the threshld fr this tax is nt subject t inflatin adjustments, s taxpayers whse incme was just belw the threshld in 2014 may find they re ver it fr Other items, such as the phaseuts f deductins and exemptins (explained belw), further cmplicate the marginal tax rate calculatin. Being aware f these breakpints can help taxpayers better understand the cst f their investment decisins. Fr example, fr thse whse incme is expected t drp in 2016 due t retirement, realizing a gain in 2015 may end up csting mre in taxes than it wuld by deferring it t the next year when they ll be subject t a lwer tax rate. On the ther hand, the investment risk assciated with that deferral can t be ignred. Investrs thinking f realizing a gain late in the year may be willing t accept the investment risk fr a shrt time lnger in rder t defer the gain int January Investrs facing that same decisin earlier in the year may nt be s willing t accept that risk fr a lnger time. In additin t knwing the tax rate that will apply t capital gains, there are ther cnsideratins t keep in mind when it cmes t managing gains and lsses at year-end: Review net lng-term and shrt-term gains and lsses fr the year t see if there may be an pprtunity t sell a lsing stck and ffset gains frm ther sales. Since shrt-term gains (assets held ne year r less) are taxed at the rdinary incme tax rate, it s imprtant t plan t ffset thse first, which may require realizing nly shrt-term lsses. Cnversely, investrs may lk at realizing gains befre year-end t absrb any lsses realized earlier in the year. Capital lsses are used first t ffset capital gains. Shrt-term lsses first ffset shrt-term gains, and lng-term lsses first ffset lng-term gains. If there are net lsses in ne categry, thse lsses can ffset net gains in the ther categry. If ttal lsses exceed ttal gains fr the year, up t $3,000 f the remaining lsses can be used t ffset ther incme. Lsses in excess f this are carried ver t the next year t ffset gains in that year. These excess lsses can be carried frward indefinitely.

3 The market vlatility that dminated the secnd half f 2015 may have led investrs t recgnize mre gains r lsses than in a typical year. As a result, it may be mre difficult t cme t a zer-netgain r lss psitin fr Anther thing else t cnsider when trying t zer-ut capital gains fr the year: Investrs that sld their mutual funds during 2015 frced fund managers t sell psitins t generate cash. Fr investrs that held thse funds, it will likely mean larger capital gain distributins than were expected. Lastly, avid the urge t recgnize gains in rder t use up lsses realized during the year, nly t immediately repurchase the item sld at a gain because it still is makes sense t wn. Thse lsses can be carried frward t the next year, when there may be a gain that is apprpriate t realize frm an investment standpint. Using up lsses this year can result in taxable gains that can t be ffset next year. Other Investment Planning Strategies Beynd issues cncerning when t recgnize capital gains and lsses, there are ther prtfli planning pprtunities t cnsider befre year-end: In rder t fully deduct any investment interest expense paid during the year, an equal r larger amunt f interest incme and shrt-term capital gains must be recgnized during the year. Investment interest is deductible nly against thse types f investment incme, althugh excess interest expense may be carried ver indefinitely t ffset future investment incme. Investrs als have the ptin f freging the lwer tax rates n qualified dividends and lng-term gains in rder t treat thse items as investment incme fr purpses f this deductin. Making this electin essentially means taking a lwer tax benefit fr deducting that interest expense this year rather than carrying the deductin frward fr perhaps a larger benefit in the future. Thse cnsidering this electin shuld cnsult with a tax advisr wh can prepare prjectins under bth scenaris. Beware f the wash sale rules while divesting f investments at a lss. These rules prevent investrs frm deducting a capital lss frm the sale f an item if they buy a substantially identical psitin during a 61-day perid, beginning 30 days befre the day f sale and cntinuing fr 30 days after the day f sale. The wash sale rules dn t apply t any sales fr a gain, nr d they apply t gifts f appreciated stck t charity. While a lss under the wash sale rules is usually nly deferred rather than permanently lst, taxpayers wuld likely prefer receiving the full tax benefit f any realized lsses sner rather than later. An exceptin t the lss deferral after a wash sale is when an IRA is invlved. Selling a security fr a lss in a taxable accunt and then repurchasing it in an IRA can trigger the wash sale treatment. In this scenari, the lss n the sale is permanently lst. Therefre, investrs must lk acrss the entire prtfli when determining if the wash sale rules will apply. Investment firms are required t accunt fr wash sales when the exact same psitin is bught and sld in the same accunt. Hwever, wash sales invlving psitins that are nt exactly the same but that are substantially identical (such as selling a stck and then buying a call ptin n the same stck) r when they ccur ver multiple accunts are nt required t be tracked by thse firms. Taxpayers will need t watch fr thse ptential wash sales themselves.

4 In rder t claim a lss fr a wrthless stck, an investr must be able t prve the stck had value at the end f 2014 but did nt at the end f If it s uncertain whether the stck is truly wrthless by the end f the year, wners will need t sell the stck fr whatever value they can in rder t claim a capital lss. In general, if the stck is still trading, it is nt cnsidered wrthless. A bankruptcy filing by the cmpany des nt, n its wn, indicate the stck is wrthless. Incme Taxes Fr the third year in a rw, the tp tax bracket fr 2015 is 39.6%. The incme level at which that rate applies, like that f all ther tax brackets, has been adjusted upward fr inflatin this year. Beynd thse annual inflatin adjustments, there were n changes t the tax brackets fr Taxpayers shuld review federal withhlding and estimated incme tax payments in rder t avid underpayment penalties. Even thugh a taxpayer s 2015 tax liability may have increased ver 2014, it desn t necessarily mean that increased tax must be paid t the IRS befre the end f the year. T avid a penalty fr 2015, ttal tax payments must equal the lesser f (1) 90% f the current year tax liability r (2) 100% f last year s liability (110% if Adjusted Grss Incme (AGI) was mre than $150,000 fr 2014). Fr thse taxpayers whse 2015 incme is the same r higher than it was in 2014, there s a gd chance they can wait t pay the increased tax until they file their 2015 tax return in April Taxpayers whse incme in 2015 is lwer than it was last year may instead prefer t remit just 90% f their prjected 2015 tax liability befre the end f the year, leaving the remainder t pay with their tax return. In rder t prvide sme cushin fr unfreseen events, it may be better t target 93-95% f the prjected liability. While there may be an incentive t accelerate state tax payments int the current year (see belw), there is generally n such incentive fr federal tax payments. Other than paying enugh t avid an underpayment penalty, the best cash management strategy is t defer the balance f the federal tax liability until the due date fr the tax return. Keep in mind that requesting an extensin f time t file a tax return desn t extend the time fr paying the tax. Washingtn DC recgnizes Emancipatin Day as a district hliday, and fr 2016 the hliday is April 15. Because that is a Friday, the due date fr 2015 tax returns, withut filing an extensin, has been mved t April 18, This gives taxpayers a few extra days t make thse last payments. Residents in Maine and Massachusetts celebrate Patrit s Day April 18, s residents f thse states will receive an additinal day t file their tax returns, t April 19. Taxpayers are ften cncerned that their tax rate will rise frm ne t the next, but in many cases the ppsite actually happens. Fr example, thse wh retired in 2015, r plan t in 2016, may have a decreased level f incme that culd trigger a fall t a lwer bracket next year, and that bracket culd have a lwer marginal tax rate. If that s true, deferring ther incme int 2016 frm 2015 may be apprpriate. While it s difficult fr mst taxpayers t time the recgnitin f incme, self-emplyed individuals r thse whse incme is primarily cmmissin-based may have mre flexibility here. Cuples wh were married in 2015 will be filing jint tax returns fr the first time. The tax impact f this change in filing status culd vary significantly depending n the cuple s incme level.

5 In situatins where there is a significant difference in incme between the tw spuses, filing jintly may result in a net tax savings ver what they each paid as single individuals. In cases where each spuse has similar levels f incme, hwever, the marriage penalty culd result in an increased tax liability ver what they paid as single taxpayers. Newly married cuples shuld be prepared fr this ptential tax increase. Cuples getting married in 2016 shuld cnsider the timing f their deductins in rder t maximize the tax benefit ver the tw-year perid. Thse expenses shuld be paid in the year they ll be subject t the highest marginal tax rate. Fr same-sex cuples, the requirement t file a jint federal tax return applies as lng as they are legally married. Hwever, several states still dn t recgnize the marriage, s they may need t file as tw single taxpayers fr state purpses. As a result, these cuples shuld carefully review their prjected federal and state tax liabilities in rder t ensure they avid underpayment penalties. In 2015, cuples with AGI ver $309,900 (singles ver $258,250) will see their itemized deductins reduced by 3% f their incme ver that level. This phaseut results in an increase in the marginal tax f % fr thse affected. The natural reactin is t cut back n expenses that can be deducted because it appears the full value f the expense isn t being realized. Hwever, this apprach is usually incrrect the phaseut is driven almst entirely by incme, nt the amunt f deductins claimed. Fr example, a taxpayer cnsidering a large charitable cntributin will still realize the full value f the deductin. Hwever, recgnizing a capital gain r taking an additinal IRA withdrawal will drive up AGI, and thereby increase the amunt f deductins lst t the phaseut, effectively increasing the tax cst f that additinal incme. Determine if it is better t pay deductible expenses (such as prperty taxes, charitable cntributins, state estimated tax payments, etc.) befre the end f 2015 r after. Fr taxpayers whse incme will increase in 2016, their deductins culd be wrth mre next year, s deferring deductible expenses int next year wuld be apprpriate in that scenari. On the ther hand, fr taxpayers whse incme will fall in 2016, it may make sense t accelerate deductins int Anther factr is whether r nt the taxpayer may be subject t AMT in either year. Taxpayers subject t AMT essentially lse the benefit f deductins such as state incme and prperty taxes and ther miscellaneus deductins. While aviding AMT can be difficult in sme cases, ding a multi-year tax prjectin can help quantify the tax results under different scenaris. This AMT issue is particularly imprtant fr thse whse incme is unusually high this year and is expected t fall again next year. The first thught is ften t delay paying the full state tax liability until the return is filed. Hwever, ding s will push the state tax deductin int the next year, when the larger deductin and decrease in incme may cmbine t trigger an AMT liability. Paying the full state tax liability this year when incme is higher can nt nly maximize the value f the deductin, but als help avid AMT in the lw-incme year. Be sure t cmplete any charitable bligatins prir t year-end in rder t take a tax deductin fr As always, utilizing appreciated prperty fr cntributins rather than cash can be a great tax savings tl. Thse gifts will generate a deductin fr the full value f the prperty withut having t recgnize a taxable gain.

6 When making charitable gifts, be sure nt t gift securities that have a lss. By giving a psitin with a lss, the deductin is limited t the market value at the time f the gift, and neither the taxpayer nr the charity will receive any tax benefit fr the built-in lss. Rather than dnating smething that has a lss, taxpayers are better ff selling it first t realize the lss, which can then be deducted, and then gifting the sales prceeds t the charity. Als be sure t dnate nly thse items that wuld be cnsidered lng-term assets. Dnating an asset that is cnsidered a shrt-term hlding will limit the tax deductin t the cst basis. Charitably-inclined taxpayers whse incme is unusually large in 2015 (due t a sale f a business, stck ptin exercise, deferred cmpensatin payment, etc.) may want t cnsider a dnr advised fund. These funds allw taxpayers t make a gift in the current year, but then defer the distributins t charities until smetime in the future. With this type f gift, the tax benefit is realized immediately withut having t cmmit t a specific charity until later. The gift t the fund is irrevcable, but these vehicles can be a great way t maximize the tax benefit f a dnatin. The law that allws eligible taxpayers t make charitable gifts directly frm their IRA and nt have t reprt the withdrawal as incme (knwn as a Qualified Charitable Distributin, r QCD) expired at the end f This is ne f the prvisins that wuld likely be included in any tax extenders bill passed later this year, but until final legislatin is passed, we have t assume the technique is nt available. Taxpayers make these types f gifts assuming the rule will be extended d s at their wn risk. While this rule is usually extended retractively, that hasn t always been the case. Even if the QCD rule is nt reenacted, taxpayers can still make a direct transfer frm an IRA t charity. The withdrawal will be taxable, but the gift will be deductible, and fr many taxpayers the net tax result is the same as making a QCD. Als, dnating appreciated prperty will in many cases lead t a better verall tax result than the QCD technique. The deductin fr gifting the stck will still ffset the IRA withdrawal, but the capital gain n the stck is als avided, prviding a duble tax benefit. Cnsider bunching certain itemized deductins such as medical expenses and miscellaneus deductins in rder t exceed the minimum AGI limitatins. Hwever, beware f AMT cnsideratins that can reduce r eliminate any benefit frm this planning. Fr mst taxpayers, medical expenses are nly deductible t the extent they exceed 10% f AGI. Taxpayers age 65 r lder are still subject t the ld 7.5% f AGI threshld, but nly thrugh This transitin is due t a prvisin in the Health Care Act that tk effect in As part f the 2010 health care act, taxpayers are nw required t purchase health care cverage, and fr 2015 the penalty fr nt purchasing has increased. Fr this year, the penalty is the greater f 2% f incme r a flat $325 fr a single persn ($975 fr a family). The penalty is calculated n a mnthly basis, meaning purchasing cverage nw wn t avid the penalty, but it can minimize it. Fr 2016, the penalty reaches its maximum level f the greater f 2.5% f incme r $695 fr a single persn ($2,085 fr a family). There are numerus exceptins t the penalty, s check with a tax advisr t determine the requirements under this rule. Like with itemized deductins, persnal exemptins the $4,000 deductin allwed fr a taxpayer, their spuse and any dependents are als subject t a phaseut. This phaseut is tied t the same incme threshlds as the deductin phaseut, s the nly way t avid it is t keep incme belw thse amunts. Parents may be tempted t allw their children t claim themselves if the parent receives a reduced benefit fr the exemptin. Hwever, the exemptin must be claimed by whever is prviding mre than 50% f the supprt fr that persn, even if there is n actual tax benefit fr the

7 deductin. This phaseut is in effect anther frm f tax increase nce incme crsses the applicable threshld smething fr taxpayers t cnsider befre recgnizing mre incme. Cnsider restructuring nndeductible interest expense (such as aut lans r credit card debt) t deductible interest (such as a hme equity lan). Emplyees wh have emplyer stck ptins shuld review their lng-term strategy t determine whether t exercise any ptins this year. This is particularly true fr thse wh hld Incentive Stck Optins (ISOs). While these ptins nly create incme fr Alternative Minimum Tax purpses, that still usually leads t an increased tax liability fr many ptinees. Taxpayers wh exercised ISOs in prir years may have paid AMT as a result f that exercise. The additinal tax paid in thse cases is ften cnsidered creditable, and can be used t reduce taxes in years when the taxpayer is nt subject t AMT. The ability t use this credit is smething else t cnsider when recgnizing incme befre year-end. The Kiddie Tax applies t children under age 19, r under age 24 if they are a full-time student. As a result f this, parents will find it difficult t shift investment incme frm themselves t their children fr a tax savings. Fr 2015, the first $1,000 f unearned incme (basically anything ther than wages r self-emplyment incme, such as interest, dividends and capital gains) is exempt frm tax. The next $1,000 is taxed at the child s tax rate, but any incme ver $2,000 is taxed as if it were the parents incme, including the higher capital gain tax rates and the Medicare tax n investment incme. Retirement Planning Taxpayers shuld be sure t maximize 401(k) r ther retirement plan cntributins fr which they are eligible. In mst cases, the maximum cntributin fr 2015 increased ver the 2014 maximum. Cntributins t either a Traditinal r Rth IRA shuld als be maximized, althugh these limits did nt increase ver Cntributins t these accunts are limited t a cmbined $5,500 ($6,500 if age 50 r ver) fr Thse cvered by an emplyer-spnsred retirement plan are subject t incme limits that affect the ability t deduct cntributins t a Traditinal IRA. Fr 2015, married cuples with incme ver $98,000 and singles ver $61,000 will begin t lse the benefit f the IRA deductin. The deductin is fully phased ut nce incme reaches $118,000 fr cuples, $71,000 fr singles. Hwever, being ver that threshld des nt prevent smene frm making a nn-deductible cntributin (as lng as they have earned incme equal t r greater than the cntributin amunt). Full cntributins t a Rth IRA are nly allwed fr thse with AGI belw $183,000 fr jint taxpayers ($116,000 fr single taxpayers), with cntributins phased ut at $193,000 ($131,000 fr singles). Taxpayers age 50 r lder are usually eligible fr a catch up cntributin an additinal cntributin amunt ver the base limitatin. Thse wh turned 50 in 2015 shuld be aware f this increased IRA r emplyer plan cntributin amunt. Cnsider cnverting a Traditinal IRA t a Rth IRA prir t year-end. There is n lnger an AGI limit fr Rth cnversins, s all taxpayers are nw eligible t d a cnversin. The cnversin amunt will be fully taxable in the year f cnversin (ther than any previus nn-deductible cntributins t the accunt). Thse wh did cnvert a Traditinal IRA t a Rth IRA may have seen the value f the accunt decrease since the time f the cnversin. This is particularly true fr thse cnversins dne prir t

8 the market vlatility in the third quarter. If that s the case, thse Rth IRA wners may want t cnsider recnverting that Rth back t a Traditinal IRA, thereby negating the tax due n that frmerly larger accunt balance. Fr cnversins dne during 2015, the deadline t recharacterize the Rth cnversin is Octber 15, Thse wh d recharacterize back t a Traditinal IRA can then re-cnvert it back t a Rth IRA, subject t waiting perids. They must wait until the next taxable year after the riginal cnversin t the Rth, r 30 days, whichever is later. This means that if a 2014 Rth cnversin was recharacterized during 2015, it can then be recnverted back t a Rth after just waiting 30 days. If the riginal cnversin was in 2015 and it was recharacterized this year, then the recnversin back t the Rth must wait until at least January 1, Once an IRA wner reaches age 70½, the Required Minimum Distributin (RMD) rules apply. Thse IRA wners must take a distributin frm their IRA by December 31, 2015, with the amunt based n the January 1, 2015 value f the accunt. IRA wners wh turned 70½ during 2015 are able t defer their first RMD until April 1, 2016, but then must take a secnd RMD fr 2016 by the end f next year. Missing the deadline fr taking any RMD will result in a penalty equal t 50% f the undistributed amunt. The RMD rules apply t Traditinal IRAs and, in mst cases, t emplyer retirement plans. Rth IRAs, hwever, are exempt frm these rules. Upn death f the wner, any nn-spuse beneficiary must als take RMDs, including frm a Rth IRA. Other Financial Planning Cnsideratins The annual gift tax exclusin amunt remained $14,000 fr 2015 (and fr 2016). Taxpayers trying t minimize a future estate tax liability can begin by making annual gifts t family members. The estate tax exemptin amunt rse t $5.43 millin fr 2015 and will increase with inflatin each year ging frward (the 2016 amunt is $5.45 millin). Making large gifts under this prvisin shuld be dne nly after a thrugh review f the verall estate plan, but shuld be strngly cnsidered by thse wh are likely t pay an estate tax. Taxpayers may cnsider funding a 529 plan t help pay fr future educatin expenses. One advantage f gifting t a 529 plan is that 5 years wrth f gifts can be made in ne year. With the annual gift exclusin at $14,000 fr 2015, a taxpayer can gift up t $70,000 at ne time t a 529 plan duble that if the gift cmes frm a cuple. Taxpayers cnsidering making 5 years f gifts at nce shuld wait until early 2016 t d s. That will allw them t still cntribute $14,000 t the 529 fr 2015 befre ding the 2016 thrugh 2020 gifts next year. Funding a Cverdell Educatin Savings Accunt can als prvide tax-free incme fr educatin expenses. Taxpayers can cntribute up t $2,000 per year per beneficiary under 18 years ld. Because Cverdell accunts are the nly tax-advantaged vehicle that can be used fr K-12 expenses, these accunts are still valuable t many taxpayers. Cntributins are limited t married cuples with Mdified AGI belw $220,000 ($110,000 fr singles). Staying Up-T-Date This may be a gd time t address ther financial cncerns that dn t necessarily relate t year-end. Investrs shuld review their investment asset allcatin with their Financial Advisr t determine if it s still apprpriate given their gals and time hrizn. Market vlatility can als trigger a need t rebalance a prtfli peridically back t a target allcatin.

9 Individuals shuld cmpile a list f where all pertinent financial dcuments can be fund in the event they becme incapacitated. Include accunt numbers, cntact names and phne numbers, and ther key facts n all family members. This sheet shuld be kept in a safe lcatin, but accessible by the apprpriate persn if the need arises. Estate dcuments shuld be reviewed t ensure they re still apprpriate, especially if there has been any change in marital status, any births r deaths in the family, a significant change in persnal net wrth, r relcatin t a new state during the year. Review any beneficiary designatins n insurance plicies, retirement plans, etc. t ensure they are still apprpriate. The Wise Investr Grup can wrk with yur tax cnsultant t help yu better understand the cst f yur financial decisins. T learn mre abut The Wise Investr Grup and hw we can help yu build yur wealth management strategy us r call (866) t get started. Cnnect with us n: This is nt a cmplete analysis f every material fact regarding any cmpany, industry r security. The pinins expressed here reflect ur judgment at this date and are nt necessarily parallel with Rbert W. Baird & C. The Wise Investr Grup and Rbert W. Baird & C. d nt prvide tax r legal advice. Please refer t yur tax prfessinal prir t implementing any tax strategies. The Wise Investr Grup Freedm Drive, Suite 1000 Restn, VA Rbert W. Baird & C. Incrprated. Member SIPC.