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Were Your Taxes a Costly Surprise This Year?

Posted By Lineweaver Financial Group
May 02, 2019 Category: Taxes, Trump, Portfolio

There’s been a lot of confusion this year, as we all file for the first time under the New Trump Tax Law. Some people are finding that their returns are lower, or that deductions they’ve always depended on have gone away. The biggest cause that we see for a lower return is a lack of tax strategy and planning in advance – most strategies have to be in place by the end of the tax year – not at filing time.  There are estate planning implications as well – for example, if you’re considering a ROTH conversion, which can be a great strategy, there used to be q “do-over” period you had in case something happened after the fact, or if you changed your mind. However, that’s no longer the case. There are two parts to this; 1) being proactive, and 2) investing for tax efficiency, because taxes have the ability to take the largest bite out of your portfolio and your returns, and, it’s important to remember that it’s not what you make – it’s what you keep. That means working with a team to build a portfolio that takes advantage of taxable, tax-deferred, and tax-exempt accounts, understanding your tax bracket under the new law, and choosing investments that are tax-efficient, and, as much as possible, preparing you for the volatility and uncertainty that have been rampant in the markets. While coordinating financial plans properly is always challenging, it is especially challenging today given with in

What the Most Sweeping Tax Law in 30 Years Means for You

Posted By Lineweaver Financial Group
October 15, 2018 Category: Quarterly Newsletter, Trump, Tax Law

By Mark Sipos The Tax Cuts and Jobs Act of 2017 is the most sweeping change to the tax code in over 30 years. Understanding these new tax laws and working proactively within them can save taxpayers thousands of dollars. We would like to highlight the major changes of this new tax legislation and how it impacts individual taxpayers. President Trump’s tax plan calls for maintaining the seven brackets found under the old law, however, the new law reduces the rates 2-3% across the various bracket income levels. It’s worth noting that the new tax brackets have dramatically increased the income levels within each bracket, so more of your taxable income will be taxed at lower tax rates!  There are deductions to consider as well. Changes are coming for taxpayers who take the standard deduction and for those who itemize. The Trump tax plan increases the standard deduction to $12,000 (for individuals) and $24,000 (for married couples fling jointly), effectively doubling these standard deductions under the old law. Taxpayers who itemize can write off their state and local income, property and general sales tax payments on their federal tax return. This effectively prevents double taxation. Starting in tax year 2018, that deduction is capped at $10,000. Under prior law, homeowners could deduct their mortgage interest payments on mortgages up to $1 million. The new tax plan limits the deduction for mortgages up to $750,000. Interest on home equity line