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Tax Planning

Medical Expenses & 2018 Tax Planning

For those who have out-of-pocket medical and dental expenses, the Tax Cuts and Jobs Act could provide an unexpected tax break. Proposals in the House of Representatives in late 2017 called for a repeal of medical expense deductions entirely, as part of reform to curtail itemized deductions. After negotiations, the medical expense deduction was actually… More >

Estate Taxes after the Tax Cuts and Jobs Act

Proposals to repeal the federal estate and gift tax came about during the Presidential campaign and continued into 2017. The enacted Tax Cuts and Jobs Act changes, but does not fully revoke, estate and gift taxes. The tax reform increased the 2018 exemption amount per person from $5.6M to $11.2M, doubling what can pass on… More >

Charitable Contribution Strategies under the New Tax Law

The itemized deduction for charitable contributions may have less income tax-saving benefit for some taxpayers starting with the 2018 tax year. This is due to a substantial increase in the standard deduction and the elimination or reduction of other itemized deductions. The new law increases the standard deduction to $24,000 for married couples and to… More >

Home Equity Loan Interest May Still be Deductible under New Tax Legislation

The recently passed tax bill suspends the itemized deduction for interest on home equity indebtedness, beginning with tax years after December 31, 2017. A taxpayer, however, may still be able to claim a deduction for some or all of the interest on a home equity line of credit (HELOC). The type of loan (e.g. traditional… More >

Highlights from Tax Reform

Congress has voted to pass a major rewrite to the tax code that the President will soon sign into law. The complex nature and late timing of the bill make year-end strategic decisions difficult to evaluate. You may want to connect with your tax-preparer to ask if there are any tactics specific to your situation… More >

Facts & figures to Know for 2018

Many questions remain as Congress debates edits to tax reform legislation. While there are still unknowns, there are some figures we can start to consider in plans for 2018 and beyond. Below is a summary of certain announcements made by the Internal Revenue Service and other agencies related to 2018. Employer Retirement Plan Savings The… More >

Fourth-Quarter To-Dos to Keep on Your Radar

If you have an employer-sponsored retirement plan: Review your paystub or plan statement to confirm you are on schedule to contribute what you intended for the year. There is time left in the year to increase your contribution from salary deferral if you are not adding the maximum, which for most plans is $18,000 for… More >

Will my beneficiaries have to pay taxes on my life insurance policy?

Under current law, death benefit proceeds from life insurance are generally income tax-free. If you name a spouse, child, or other individual as a beneficiary to a life insurance policy you own, that person will not have to report any of the proceeds as income due to your death. If a beneficiary elects to receive… More >

Tax Preparation Guide for Heritage Clients

Tax season can be quite, well, taxing! Every year we compile a comprehensive tax preparation guide for Heritage clients. This guide is a handy reminder of the many variables that affect your tax filing, and ways to navigate through them effectively. 1099 Composite and Year-End Summary Consolidated 1099 tax forms are available online from Schwab… More >

Tax-loss Harvesting

Tax-loss selling is a common tax planning strategy. Harvesting a loss generates current tax savings. Even if a position that is harvested for a loss is then later sold at a gain, there is an opportunity for tax deferral in the meantime, which can create a modest economic benefit. A loss now produces additional dollars… More >