Business & Finance

Point View's Claire Toth Says: Don’t Wait for Congress - There are Ways to Cut One's Taxes Today

06e8917dee3b76fa2132_2575763e9e57b10ee79e_65d05b83ee8032557a1b_Toth__Claire.jpg
Claire E. Toth, JD, MLT, CFP™
9db79c1beddffece9ba1_00860f8cb008c510a000_43f4ce4950c844253765_TAP__300x250_-_Updated.jpg
06e8917dee3b76fa2132_2575763e9e57b10ee79e_65d05b83ee8032557a1b_Toth__Claire.jpg

SUMMIT, NJ - Tax legislation may be unsettled, but there is still have time to reduce one's 2017 tax bill. So says Claire Toth, Vice President and C.O.O. at Summit-based Point View Wealth Management. She directs individuals to make a series of moves quickly, before the year end, including:

Contribute the Maximum to Employer Retirement Plans. Anything that is contributed to a traditional 401k, a Health Savings Account, or a Flexible Spending Account never comes into income. 401ks appear to be safe under whatever tax bill is enacted, but HSAs and FSAs may be at risk.

Prepay State and Local Taxes. Depending on whose version of the tax bill one is reading, their 2018 property tax deduction may be limited to $10,000, or it may go away altogether. As of this writing, individuals won’t be able to deduct state income taxes at all under either the House or the Senate version of the tax bill. That means to prepay what state taxes they are able: pay fourth quarter state estimated income taxes this month. If individuals typically find themselves owing state taxes in April, boost that prepayment. For those paying property taxes directly, make first quarter 2018 payments early. If their mortgage is held by a local bank, ask it to prepay those taxes. It likely will not, but those who don’t ask, it can’t get a 'yes'.

Sign Up for E-News

Give to Charity. Individuals at least 70-1/2 years of age and who have not yet taken their entire required minimum distribution from an IRA should consider giving some or all of it to charity -- that keeps the distribution off their tax return entirely. Not in that situation? Donate appreciated stock and avoid paying capital gains.

Generate Capital Losses. Investors can offset recognized capital gains dollar for dollar with capital losses. Better yet, they can use up to $3,000 of losses in excess of total gains against ordinary income. Aim to end the year with a net $3,000 capital loss. Any loss in excess of that can be used in future years. Bought some stocks in multiple lots? Under the Senate’s version of the tax bill, individuals won’t be able to choose which shares to sell in future years -- they’d have to sell in the same order purchased.  

Accelerate At-Risk Deductions. The House and Senate versions of the tax bill propose to eliminate a multitude of useful deductions, and it’s not clear which of them, if any, will ultimately survive. If one may currently be eligible for any of them, they should prepay what they can this year: the deduction for medical expenses to the extent they exceed 10 percent of adjusted gross income, the deduction for student loan interest (at least make January’s payment this year), the teachers’ deduction for out-of-pocket purchases of school supplies.  

Consider a Roth IRA Conversion. Under current law, those making a Roth IRA conversion from a traditional IRA have until the day they file their tax return to undo some or all of it. This can be useful if the investments they converted lost value or if the conversion puts you in a higher tax bracket than you anticipated. The tax legislation may eliminate their ability to undo that conversion -- take advantage of the flexibility while one can.

Finalize that divorce. The tax legislation may negatively affect the tax treatment of alimony. If so, it would only apply to divorces finalized after 2017. Wrapping up the divorce -- or at least getting the order entered -- this year gives the parties more wiggle room in dividing the financial pie.

For more information, call Toth at 908-598-1717 or contact ctoth@ptview.com with any questions or to discuss how this might impact one's financial situation.

Point View Wealth Management is located at 383 Springfield Avenue in Summit and has, by CNBC, been named one of the Top 100 fee-only wealth managers in America.

 

TAP Into Another Town's News:

Sign Up for E-News

Summit

To Our Current and Future Representatives

July 17, 2018

To Our Current and Future Representatives - Wherever They May Be:

We can never forget we are a nation of immigrants. 

We cannot fall prey to fear, ignorance and anger when we  have been historically driven by freedom and justice. 

We must have the courage and will to fight hate, bigotry and prejudice. 

We must not wake up to what we hoped was a bad dream and ...

Upcoming Events

Carousel_image_92eaadab4fea5d764092_edc2dcd4802a1c409d7c_screen_shot_2018-04-03_at_1.15.57_pm

Sun, July 22, 8:00 AM

Summit Summer Farmers Market, Summit

Summit Farmers Market

Community Calendar Food & Drink Green Health & Wellness

Carousel_image_3104d62d4140717c0d39_c4b1c442498721eb1133_da642dc68aa7d0728e5c_9de480c638b23e5ff30b_15439854_1068128309964954_2075775014450964550_n

Sun, July 22, 5:00 PM

Central Presbyterian Church, Summit

Summer Outdoor Worship with BBQ

Arts & Entertainment Religions And Spirituality

Carousel_image_b7bf86ab9b5cba4793d9_347facfa8ac6817752ac_19055513_10158829487705483_8854478692329281822_o

Mon, July 23, 7:45 AM

17 Kent Place Boulevard, Summit

Monday Morning Yoga

Health & Wellness

Summit Police Blotter

July 9, 2018

6/19 - Peter Ferguson, 31, of New York, New York was arrested on a contempt of court warrant out of Point Pleasant Beach. Mr. Ferguson posted bail and was provided a new court date.

6/22 - At 1552 hours a report was taken for a theft of one thousand (1,000) mops from Overlook Hospital. The reporting individual indicated the theft occurred between 6/10 and 6/21. Taken from a storage area ...

Audio: Point View's Petrides Details Three Things to Watch During Earnings Season on 'Wall St. Unplugged'

July 20, 2018

Point View Wealth Management's Managing Director and Portfolio Manager, John Petrides, on Wall Street Unplugged discussing portfolio positioning during earnings season:

curzioresearch.com/three-critical-things-to-watch-during-earnings-season

For more than 25 years, Point View Wealth Management, Inc. has been working with families in Summit and beyond, providing ...

Video: Point View's Dietze Says Valuations, Buybacks, Dividend Make Financials Attractive

Point View Wealth Management's Founder, President and Chief Investment Strategist, David Dietze, appeared live on CNBC detailing the outlook for financial stocks and more:

cnbc.com/video

For more than 25 years, Point View Wealth Management, Inc. has been working with families in Summit and beyond, providing customized portfolio management services and comprehensive ...

Picking up the Pieces – The Benefits of Account Consolidation

Over a lifetime of investing we often have numerous accounts located at different financial firms.  Rarely are these accounts managed with a grand plan that takes into account all the individual pieces.   Account proliferation can be detrimental to your investment performance, increase your risk profile, and lighten your pocketbook.  

Account consolidation offers the ...

AtlantiCast

AtlantiCast: Episode 18

On this week’s AtlantiCast, you’ll find out how accessing care at Atlantic Health System is now easier, more affordable and closer to home than ever, learn which item from the produce aisle could be the newest weapon against cancer, see what Atlantic Health System, the New York Times and Instagram all have in common and much more.

 

 

Are You Ready for Your Child to Turn 18?

If your son or daughter is turning 18, here are a few things you need to know:

If you have an UGMA/UTMA savings account for your child, did you know those assets are his/her legal property and once that instrument matures (most often 21 years old or 18, if you designated that at time of account creation), those assets are at your child’s disposal with no restrictions or ...

Would Shedding

How much wood wouldn’t a woodchuck chuck if a woodchuck could chuck woodn’t?

 

Enough already.  

 

I get it.  It is an easy mistake to make, misusing would and wouldn’t.  It happens to me all the time.

 

“Honey, when I said I didn’t see any reason why I would go to the ballet, I meant to say I couldn’t see ...