By: Michael Allbee, CFP®, Senior Portfolio Manager We pointed out last year there was an opportunity for some Californian taxpayers to get relief for the $10,000 state and local tax (SALT) cap through 2021 - 2025. You can do this by paying some of your California taxes through a profitable pass-through business with some limits and nuances. This helps get around the $10k federal cap for state...
By: Michael Allbee, CFP®, Senior Portfolio Manager Late last year we gave you some tips on how to profit from inflation by investing in Series I savings bonds (I-Bonds). You can buy up to $10,000 per person per year directly from Treasury Direct. But you can also fight inflation by buying an additional $5,000 in paper I-Bonds with your income-tax refund. You can ask to receive all or part of...
The IRS announced that the starting date for when it would accept and process 2021 tax-year returns was Monday, January 24, 2022. Tips for making filing easier To speed refunds and help with tax filing, the IRS suggests the following: Make sure you have received Form W-2 and other earnings information, such as Form 1099, from employers and payers. The dates for furnishing such information to...
This white paper discusses tax planning from a federal estate and gift tax perspective for 2022 and many of the techniques discussed could reduce your overall income tax burden. * In the white paper we discuss: Making gifts to children and grandchildren while incurring little or no gift tax;Avoiding gift tax reporting by making direct tuition payments for any individual;Excluding from gift taxes...
Focus on What You Can Control By: Paul Horn, CFP®, CPWA®, Senior Financial Planner The goal of every investor is to get the best returns possible per unit of risk based on your risk tolerance (the “optimal portfolio”). No matter how much research you do or the investment philosophy you use, at the end of the day there are many variables that you cannot predict or control for when you are making...
Tax planning should be part of every individual investor’s financial and retirement plan. Here are 7 things to consider as you weigh potential tax moves between now and the end of the year to help you save money: 1. Defer income to next year Consider opportunities to defer income to 2022, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a...
By: Michael Allbee, CFP®, Senior Portfolio Manager Did you miss out on #GivingTuesday? You still have time to take advantage of two temporary perks for cash gifts to charities before they expire at year-end. The first perk for those that itemize deductions, allows 100% of cash gifts (including by check, credit card or debit card) to be deductible in 2021 (this also applied for 2020)....
We get it. With so much going on, it can be easy to forget taking your required minimum distribution (RMD). Failing to take the full amount of an RMD could result in a penalty tax of 50% of the difference. When do I need to take them? How much do I need to take? Can I avoid the ordinary income from the RMD? This 3-minute BFSG short with Paul Horn, CFP® gives a high-level overview of the most...
In case you missed this week’s BFSG’s Fall Webinar Series, “Tax Planning: Understanding Biden’s Tax Proposals”, you can now watch the replay by clicking here. Our guest speaker Erica York, an economist with the Tax Foundation, reviewed the current Build Back Better tax proposals and we discussed tax strategies to help you reduce your taxes for 2021 and beyond. Visit BFSG University on YouTube to...
With potential tax changes on the horizon, funding a 529 college plan deserves careful consideration. 529 college plans allow an individual to donate up to $15,000 per year for each beneficiary ($30,000 per year for married couples). With the potential increase in income taxes and capital gains taxes, 529 plans could be favored since invested funds are free of both income and capital gains taxes...
By: Arash Navi, CFP®, CPA, Controller & Wealth Manager Our goal is to help our clients build and grow their wealth and tax planning plays an important role in this process. We recommend that you mark your calendar to review your finances in the first week of October, annually. Take this time to review your income for the year from employment, businesses, investments, or any other sources....
“If you like laws and sausages, you should never watch either one being made.” - Otto von Bismarck Over four long days and through 66 amendments, the House of Ways and Means Committee, the chief tax-writing committee of the United States House of Representatives, wrapped up the mark-up of the Build Back Better Act. The recommendations for spending and/or revenue...
The tax code provides several benefits for people who own their homes. In tax lingo, your principal residence is the place where you legally reside. It's typically the place where you spend most of your time, but several other factors are also relevant in determining your principal residence. Many of the tax benefits associated with home ownership apply mainly to your principal residence —...
By: Paul Horn, CFP®, CPWA®, Senior Financial Planner We have seen recent legislation pass in California called Assembly Bill 150 (AB 150) that will provide a way for some business owners to be able to get around the $10,000 cap on the itemized deduction of state and local taxes (SALT) on federal tax returns. Until the Tax Cuts and Jobs Act (TCJA) passed in 2018, individuals were able to deduct...
As life emerges from the pandemic to a "new normal," a mid-year financial checkup may be more important than ever this year. Here are some ways to make sure that your financial situation is continuing on the right path. Reassess your financial goals At the beginning of the year, you may have set financial goals geared toward improving your financial situation. Perhaps you wanted to save more,...
Tailor portfolios to your needs and goals.
Investing and saving wisely is vital to success in retirement.
Navigating the complexities of your financial affairs can be simplified.
Help to increase the amount you “take home”.
Protect your loved ones and make sure your legacy endures.
Simplify the many options and decision points of executive compensation plans.
Confidently plan for your children’s future.
Give in a tax-smart, simple way.
*Please Note: Limitations. The scope of services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. BFSG does not serve as an attorney, accountant, or insurance agent. BFSG does not prepare legal documents or tax returns, nor does it sell insurance products. Please Also Note: Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BFSG) or any financial planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.
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