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Dec 14, 201610:27 PMFinancial Perspectives

with Michael Dubis, CFP

Year-end tax ideas — be careful about speculating on Trump’s policies

(page 2 of 2)

If you work with a qualified CPA or tax advisor and are planning for tax law changes, heading into 2017 would be the logical time to evaluate your tax strategies. I believe it’s reasonable for you to talk with your tax advisor about the probability that 2017 will likely look no worse than 2016 in terms of tax brackets, and at best will feature lower brackets. If so, it suggests the following big-picture ideas:

  1. Bunch deductions this year if you don’t trigger the alternative minimum tax. Attempt to defer income into next year, if possible. (Again, if you’re subject to the alternative minimum tax you should definitely have a tax advisor.)
  2. Further, if you are a small business owner, you may find it beneficial to do similar strategies for your business, if possible.
  3. Possible changes support strong consideration to investment tax loss harvesting this year. Further, deferring capital gains appears sensible assuming you don’t need the funds today and all else is equal in your planning life.
  4. Consider making larger charitable donations this year or even funding a donor-advised fund, given charitable deductions may be less valuable in future years if tax rates go down and/or the standard deduction is raised.

Again, if you think tax rates will change in 2017 and that you will benefit by it, you should contact your qualified tax advisor to review tax-planning strategies and do so soon.

I hope this inspires you to make progress with your dedicated tax advisor to optimize year-end tax planning needs.

MICHAEL DUBIS is a fee-only CERTIFIED FINANCIAL PLANNER™ and president of Michael A. Dubis Financial Planning, LLC. He previously served as lecturer at the University of Wisconsin Business School James A. Graaskamp Center for Real Estate. Mike can be reached at financialperspectives@gmail.com.

Disclaimers:
This article contains the opinions of the author. The opinion of the author is subject to change without notice. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services described in this website or that of the author’s.

Mike Dubis does not guarantee the relevancy, appropriateness, or accuracy of any outside information or links. Mike Dubis does not render or offer to render personalized investment advice or financial planning advice through this medium. All references that might be made to an investment or portfolio's performance are based on historical data and one should not assume that this performance will continue in the future.

THIS COMMUNICIATION MAY NOT BE USED BY YOU AS A RELIANCE OPINION WITH RESPECT TO ANY FEDERAL TAX ISSUE DISCUSSED HEREIN AND IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY YOU FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON YOU BY THE INTERNAL REVENUE SERVICE.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Michael A. Dubis Financial Planning, LLC), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Michael A. Dubis Financial Planning, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Michael A. Dubis Financial Planning, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Michael A. Dubis Financial Planning, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request. If you are a Michael A. Dubis Financial Planning, LLC client, please remember to contact Michael A. Dubis Financial Planning, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.

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Dec 15, 2016 03:18 pm
 Posted by  Anonymous

Basically it was easy- when Trump got elected I put my retirement on hold and we decided against any large expenditures until we saw what health care costs and social security look like. As the bulk of the population stats look at details of proposals we may see similar shifts in the market as a lot of people in the population are affected by the health care and social security changes and the tax changes are not just cuts but reforms- cuts will be accompanied by major changes in personal deductions. As this sinks in it will slow the economy a bit. Expect also some major changes as the Affordable Care Act goes down in the self-employment area- who will be available there and who will be rejoining the workforce working for someone else. A lot of changes and until people see the actual details- we'll not know the effects.

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It is an understatement to say the world has experienced a radical shift in capital markets. There are more layers of information and opinions on the direction of the world than we've seen in decades. The internet and the media do not always make it easier, but Michael Dubis' contribution through IB blogs will help you sift through the noise and give you some perspective. You can find his company online.

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