MoneyTips

Changes in the Tax Bill Are Likely to Impact Your Tax Obligations. Consider Taking Immediate Action Before December 31st

Last week the US Federal Tax Codes had a major overhaul and the broad changes will impact almost everyone’s 2018 tax returns and beyond.  Since there is limited time left in 2017, everyone should take stock of their income and expense patterns, talk to their financial advisor and their tax planner and make any necessary changes before December 31st. You should review the list below and consider taking action if any apply to your tax situation:

• If you typically itemize your deductions, consider paying all your 2017 property taxes by year end 2017 to capture this deduction in 2017 which could be lost in 2018.*Itemized State and Local tax (SALT) deductions will be capped at $10k in 2018, but are uncapped in 2017.  Therefore, if your state and property taxes are normally over $10k, you should consider moving as much of these payments as possible into 2017.
• Pre-pay or pay your estimated 2017 STATE Income Taxes by December 31, 2017 to capture the deductions in 2017 which could be lost in 2018. *Itemized State and Local tax (SALT) deductions will be capped at $10k in 2018, but are uncapped in 2017.  Therefore, if your state and property taxes are normally over $10k, you should consider moving as much of these payments as possible into 2017.
• Consider increasing your charitable deductions in 2017 to include your 2018 charitable donations to capture the deductions in 2017 which may not be available to you in 2018.
  Start family foundation account to hold these current charitable contributions which allows you to get the 2017 tax deduction and then allows you distribute donations over future years to the charities as you so desire.  Note time is limited to establish a Family Foundation account.
• Donate appreciated stock to your family foundation to avoid paying taxes on the stocks appreciation  while capturing your full charitable donation equal to the market value of the shares in 2017
• Defer any income until 2018 if possible.
• You can still fund your IRA’s for 2017 up to April 15, 2018

Please note that this is a very general list of strategic tax steps which you should consider in 2017.  Everyone has their own personal tax issues and if your tax professional tells you differently please follow their specific instructions.

Read White Paper on the Potential Impact of Tax Reform 

Content presented is for informational and educational purposes only and is neither an offer nor a solicitation to buy and/or sell securities nor is it an offer to provide, nor shall it be construed to be the provision of, individualized investment advice in any state where Endowment Wealth Management, Inc. is not registered or notice filed and does not qualify for an exemption from such registration and notice filing requirements. Endowment Wealth Management is not soliciting or recommending any action based on this material. Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency.  

Robert Riedl Comments on Decision-Making to Simplify Debt Reduction for Retirement

On Tuesday, June 10, 2014, Robert Riedl CPA®, CFP®, AWMA®, Director of Wealth Management, at Endowment Wealth Management^TM, was quoted in a Marketwatch.com article written by Cliff Goldstein.

Robert commented on the lifestyle decisions that impact the process of investing and what decisions can aid in decreasing the weight of debt while preparing for and living in retirement.

Rob’s contribution to the article included in the following paragraphs:

While much has been written about the impact of human behavior on the process of investing,    emotions drive our spending habits as well. Robert Riedl, a wealth manager in Milwaukee, believes it’s a discussion well worth having—on a regular basis.

“It seems most debt options are lifestyle decisions which need to be revisited,” Riedl says. “Do I need the multiple vacation properties, cars and boats, or can I simplify my life and sell off some underutilized assets and reduce my debts? Identify your long-term needs versus wants, and determine what can you afford to maintain and will use in the future. Sell the assets that are too  expensive to maintain and underutilized to reduce your retirement debt burden—and enjoy the rest.”

For more information or to set up a private, no-obligation wealth consultation, you can contact Rob directly at rob@endowmentwm.com.

To read the full article: www.marketwatch.com/story/a-realistic-debt-reduction-plan-for-retirement-2014-06-10

Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies, nor shall it be construed to be the provision of investment advice.  Investments involve risk and unless otherwise stated, are not insured or guaranteed.  Be sure to consult with a qualified financial advisor and/or tax professional before implementing any investment strategies discussed herein.  While the firms are related and share corporate offices, Endowment Wealth Management, Inc. and ETF Model Solutions, LLC are each individually registered as an investment adviser in the State of Wisconsin.   A copy of Endowment Wealth Management’s  disclosure      document, Form ADV Brochure Part 2, is available upon request.