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A New Year and a New Tax Bill…

Feb 01

New Year and a New Tax Bill

What I love most about my role as a trusted advisor and wealth strategist is being able to help my clients navigate their way to optimum financial health. That means understanding the latest laws and their impact as well as structuring new plans for protecting the integrity of their investments and financial decisions along the way.

Effective January 1st, 2018, here are a few highlights of the new tax bill:

  1. The bill keeps deductions for charitable contributions, property taxes, mortgage interest, and retirement savings. It limits the deduction on mortgage interest to the first $750,000 of the loan.
  2. State Taxpayers can deduct up to $10,000 in state and local taxes. They must choose between property taxes and income or state taxes.
  3. Those paying alimony will lose their deduction, but those receiving alimony will no longer be taxed on the income. This change begins in 2019 for divorces signed in 2018.
  4. Interest on home equity lines of credit can no longer be deducted. Current mortgage-holders aren’t affected.
  5. It allows taxpayers to deduct medical expenses that are 7.5 percent or more of income.
  6. It doubles the standard deduction for everyone. A single filer’s deduction increases from $6,350 to $12,000. The deduction for Married and Joint Filers increases from $12,700 to $24,000.
  7. The bill repeals the Obamacare tax on those without health insurance.
  8. It eliminates personal exemptions. Taxpayers currently subtract $4,150 from income for each person claimed.
  9. The bill doubles the estate tax exemption to $11.2 million for singles and $22.4 million for couples.
  10. It keeps the Alternative Minimum Tax. It increases the exemption from $54,300 to $70,300 for singles and from $84,500 to $109,400 for joint.
  11. It lowers the maximum corporate tax rate from 35 percent to 21 percent. Clients who are sole proprietors (Schedule C) may consider forming an entity in 2018. See below for information on how Laguna Legal can help you set up your new Corporation or LLC.

Got questions? I’d welcome the opportunity to discuss the latest tax bill changes and its potential impact on your comprehensive financial plan with you. Let’s talk strategy… email Bart@OptivestInc.com.

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Bart A Zandbergen, CFP® is a Registered Investment Advisor with Optivest, Inc and a Registered Representative with Gramercy Securities, Inc. Investment advisory services are offered by Optivest, Inc. under SEC Registration and securities are offered through Gramercy Securities, Inc., member FINRA & SIPC, 3949 Old Post Road, Charlestown, RI, 02813, 800-333-7450.

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Investment advisory services are offered by Optivest, Inc. and securities are offered through Gramercy Securities, Inc., member FINRA & SIPC. Securities are not FDIC-Insured, are not bank-guaranteed and may lose value. This website is provided solely for Optivest, Inc. clients and does not intend to provide investment, tax or legal advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences. All references to Optivest on this website refer to Optivest, Inc. (a California Incorporated company) and all references to Optivest Properties refer to Optivest Properties, LLC. Optivest, Inc. does not represent that the securities, products, or services discussed in this website are suitable or appropriate for all investors. Information herein is taken from sources deemed reliable and neither Optivest, Inc. nor Gramercy Securities, Inc. is responsible for any errors that might occur. Optivest, Inc. may only transact business in those states and international jurisdictions where we are registered/filed notice or otherwise excluded or exempted from registration requirements. The information on this website is not intended for distribution to, or use by, any entity or person in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Optivest, Inc. or Gramercy Securities to any registration requirement within such jurisdiction or country. The opinions expressed by vendors or third parties are those of the author(s) and are not necessarily those of Optivest, Gramercy or their affiliates. All links to other Internet websites (“hyperlinks”) are included as a convenience for our visitors and Optivest, Inc. assumes no liability for the content or the presentation of such linked sites. No part of this website may be reproduced in any form, or referred to in any other print or electronic publication without the express consent of Optivest, Inc. The material has been prepared and is distributed solely for information purposes and is not a solicitation or an offer to buy or sell any security or instrument or to participate in any trading strategy. No representation or warranty is provided for any software that may be downloaded from this website. Copyright © 2016 Optivest, Inc.

Securities offered through Gramercy Securities, Inc., 3949 Old Post Road, Charlestown, RI 02813, 1-800-333-7450

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