IRS Inflation Adjustments for 2023
2022 has been a challenging year for most of us. The cost of everything has gone up – our decades high inflation rate is at 8.2% – while our stock portfolios are down. The Internal Revenue Service (“IRS”) recently issued its 2023 annual inflation adjustments for certain tax provisions. When most people think of the […]
Save on Taxes in a Negative Calendar Year
With both the stock market and fixed income market well into the red for the year, the capital loss deduction should be heavily utilized this upcoming tax season. How it works A net capital loss occurs when realized capital losses exceed realized capital gains for the year. The key here is that a position has […]
Retirement Savings Strategy – Do I Need One?
I have so many competing financial needs and I don’t know how to prioritize them. Where should I allocate my discretionary funds – debt, college education, retirement savings? Help me! We hear this plea often. The answer to the above dilemma is best solved with the development and implementation of a holistic financial plan. While […]
Asset Location: 3 Steps for Success
Asset location is an important aspect of portfolio composition and one that often gets overlooked. Like many concepts in finance, it can be part art and part science. What is asset location? It is the concept of how to utilize different savings vehicles and where to place investments among those vehicles to minimize income tax. Here we will talk about 3 steps to follow for success. 1. Establish 3 Buckets to Provide a Foundation In order to utilize asset location […]
President Biden’s Recent Tax Proposals
A couple of months ago, I wrote a blog discussing potential tax changes that might occur under our new President given his election and Democratic control of the Senate and House of Representatives for at least the next two years. That blog reviewed some of the changes President Biden proposed during his campaign. Since that […]
Potential Tax Policy Changes under the New Administration
The election of Joe Biden as President coupled with Democratic control of the U.S House of Representatives and U.S. Senate could mean tax changes are on the horizon. Although control does rest with the Democratic party, control is only by the slimmest of margins. Any changes to tax policy likely will be only modest as […]
Benefits of Becoming a Florida Resident
When considering a move to Florida, it is important to understand the benefits of doing so. Besides the year-round pleasant weather, there are two primary benefits. The first is that Florida has no state income tax, while Ohio does. Ohio imposes income tax on income of every resident of Ohio. The highest tax rate is […]
Time To Think About Roth Conversions
We have written several blogs over the years on Roth IRAs. Today though, they have even more importance given the downturn in the market over the past couple of months. As a quick refresher, a Roth IRA provides tax-free growth on after-tax contributions. When funds are withdrawn, normally after attaining the age of 59 ½, qualified distributions are tax-free. There are two ways to introduce money into a Roth IRA. The first […]
Tax Reform 2018 – Where do we Stand
As we approach the end of another year, we are close to being two years into the Tax Cuts and Jobs Act (“Act”) that was passed late in 2017 and became effective on January 1 of 2018. The Act made significant income tax changes including lowering income tax brackets and increasing standard deductions. As with […]
New Tax Act
As promised in our recent Harvester newsletter that we sent on December 7, 2017, we want to update you on the Tax Cuts and Jobs Act (the “Act”). The Act made it through the conference committee and was passed by both the House and Senate on December 20 and is expected to be signed by […]