Posts by Peters & Associates Staff

January Client Bulletin

Double (and triple) IRA season is here

The start of each year might be considered “Double IRA” season. Until mid-April (the 15th, in 2019), you still can make contributions to an IRA for 2018, if you have funds you’d like to save for retirement.

Most workers and their spouses may each contribute up to $5,500, or $6,500 for those who were 50 or older at the end of 2018. If you have additional dollars to invest, you also can put them into an IRA for 2019, now that the year has begun. The sooner you put money into a 2019 IRA and choose investments, the sooner tax-advantaged buildup might begin.

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December Client Bulletin

The new SALT deduction limits will affect home sales

The Tax Cuts and Jobs Act (TCJA) of 2017 sharply raised the standard deduction and placed limits on itemized deductions. In particular, no more than $10,000 can be deducted in state and local tax (SALT) payments on a single or joint tax return.

As a result, most people will take the standard deduction now and get no tax benefit from their property tax payments. Even those who itemize may get little or no tax benefit from their property tax payments if they also have ample outlays for state and possibly local income tax. The bottom line is that property tax payments will be fully or mainly out-of-pocket expenses for most homeowners — and for many home buyers — with reduced federal tax savings as an offset.

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November Client Bulletin

Year-end Planning Under The New Tax Law

The Tax Cuts and Jobs Act of 2017 (TCJA), passed at the end of last year, generally took effect in 2018. Therefore, the fourth quarter of this year provides the first real opportunity for year-end planning under what has been called the most important tax law passed in more than 30 years.

Broadly, the TCJA lowered income tax rates for individuals and for businesses.  As you’ll read in this issue of the CPA Client Bulletin, the standard deduction has been substantially increased, but many deductions have been trimmed or eliminated, and some innovative tax benefits have been introduced.

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Due to increased client interest in financial planning, I continue to provide quarterly updates on the investments I recommend.

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October Client Bulletin

Supreme Court Decision in Wayfair Affects Online Sellers

If your company makes sales to out-of state buyers, do you need to collect state sales tax? Until recently, Supreme Court decisions from the 20th century declared that would not necessarily be the case.

Example 1: ABC Corp., based in Alabama, sends a catalog to customers and prospects. A consumer who lives in Wyoming places a $100 order. Assume that ABC has neither employees nor property in Wyoming. ABC would not be required to collect Wyoming sales tax on the $100 purchase price …

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Due to increased client interest in financial planning, I continue to provide quarterly updates on the investments I recommend.

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September Client Bulletin

A Grain of SALT In The New IRS Notice

Taxpayers who itemize deductions on Schedule A of their tax return have been able to deduct outlays for state and local income tax as well as property tax with no upper limit. (State and local sales tax may be deducted instead of income tax.) However, as of 2018, the Tax Cuts and Jobs Act of 2017 provides that no more than $10,000 of these state and local tax (SALT) expenses can be deducted on single or joint tax returns ($5,000 for married individuals filing separately).

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Due to increased client interest in financial planning, I continue to provide quarterly updates on the investments I recommend.

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July Client Bulletin

More Give in the Gift Tax

The Tax Cuts and Jobs Act of 2017 increased the federal estate tax exemption to $11.18 million for 2018. That’s per person, so the combined exemption for a married couple
can be as much as $22,360,000 worth of assets this year.

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invest-view

Due to increased client interest in financial planning, I continue to provide quarterly updates on the investments I recommend.

Read more

April Client Bulletin

Patience Is Prudent

The Tax Cuts and Jobs Act (TCJA) of 2017, passed at year end, has been called the most extensive tax legislation in more than 30 years. It’s certainly far reaching, covering individual income taxes, business income taxes, and estate taxes. The new law has many tax saving opportunities as well as possible pitfalls.

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invest-view

Due to increased client interest in financial planning, I continue to provide quarterly updates on the investments I recommend.

Read more

March Client Bulletin

Weighing the risks of bond funds

Most portfolio allocations call for a mix of stocks (equities) and bonds (fixed income). The underlying theory is that stocks may deliver substantial results over the long term, whereas bonds contribute interest income and lower volatility.

Read more here.

invest-view

Due to increased client interest in financial planning, I continue to provide quarterly updates on the investments I recommend.

Read more