-- Leading Financial Planner Jason Taylor has just revealed some of the most important aspects of the new tax changes that are going to affect investors.
For more information please visit http://www.taylorsfinancial.com/
The Tax Cuts and Jobs Acts that came into effect January 1 brought sweeping changes, causing uncertainty among taxpayers and investors alike.
When asked to elaborate, Taylor said, “If you’re unsure about changes to the new law, the best thing to do is to pinpoint the major shifts in the tax code and to consult an expert to see if your financial plan needs to be adjusted.”
1. Pass-Through Entities
Most pass-through entities - such as S Corporations and LLCs – are likely to save on their taxes under the new law, particularly in manufacturing, real estate, financial services, health insurers, downstream energy, and telecoms services.
“This means that businesses, once limited in scope could use these savings to expand their scope, re-invest in their own businesses, or use the money for other financial investments in new markets,” Mr. Taylor said.
2. Personal Tax Code
A number of changes have been made to the personal tax code, with standard deductions nearly doubled and itemized deductions mostly scrapped.
“While a lot of itemized deductions have been eliminated, tax payers can still benefit. Health care expenses, for example, that are more than 7.5% of someone’s total income can be claimed on a tax return,” he said.
“The tax code continues to benefit investors who regularly give to charity, as they can continue to deduct any donations or contributions.”
3. Retirement Contributions
Before the bill was passed, there were concerns that pre-tax contribution levels to 401(k) accounts would be lowered. Contribution limits have remained the same at $18,000 for this year under the new law.
“The new tax law may make it easier to borrow against a 401(k), but it might be a good idea to let your retirement funds grow untouched,” Taylor said.
4. 529 Education Plans
The next tax plan broadened 529 Plans – a savings account initially intended for college expenses – so that it can be used for primary and secondary education.
Taylor was quoted as saying, “We think that parents of school-age children and their relatives are likely to make a large contribution into their 529 Plans in the near future, as they can be used to pay for expenses at public, private, and public schools without paying income taxes.” BE AWARE…. All states have not passed similar laws yet. Therefore in some states your withdrawal from a 529 plan for school-aged kids may be taxable at the state level.
5. Estate Planning
One of the big winners of the new tax code was estate tax. Exemptions for estate tax were doubled up until 2025.
When asked to comment about this Taylor said, “The new limits on how much people can exempt their estate and gift taxes have been lifted to $22.4 million for a married couple and $11.2 million for singles.”
Be sure to contact your CPA to maximize the new 2018 Tax rules early in the year. Similar to a Financial Plan a good Tax plan can save you money and forge a path to having more money in your pocket.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Jason Taylor
Email: Send Email
Organization: Taylor's Financial Planning
Address: 4025 Automation Way D3, Fort Collins, CO 80525, USA
Phone: (970) 584-9551
Website: https://www.taylorsfinancial.com/
Source URL: http://RecommendedExperts.biz
Release ID: 294408
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