Archive for the ‘Personal Finance’ Category:

Is my Home Equity loan interest still deductible?

Written on July 16th, 2018 by Jamesno shouts

Prior to 2018, mortgage interest on $1M primary mortgage and Home Equity loan interest on a loan up to $100k were deductible on your Schedule A itemized deduction form of your tax return.  With the new tax law that has changed and caused a bit of confusion:

For mortgages taken out in 2018, the total combined mortgage loan amounts (primary and home equity/second) where interest can be deducted has dropped to $750,000.  The question is what about Home Equity Loan interest?  The new tax law made it sound as if Home Equity loan interest would no longer be deductible, however per the IRS that is not the case.  If a Home Equity loan was taken out to specifically make improvements to the property then the interest on the loan can still be deducted on your Schedule A.  The caveat is that the loan has to be to improve the residence it is loaned against, no using it to pay off credit cards, vacations, etc…

For more info see the IRS’ statement on this:  https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law

non-deductible IRA distributions?

Written on June 22nd, 2018 by Jamesno shouts

This question came up recently with a client that had both Non-deductible contributions in an IRA mixed with Pre-tax (deductible) contributions.  When you take a withdrawal how much is taxable?  It is called the Pro-Rata rule with the IRS and you have divide your after tax contributions by the entire retirement balance to figure out non taxable basis.

Kudos to Wells Fargo for putting out this great info sheet that explains the whole thing:  https://www08.wellsfargomedia.com/assets/pdf/personal/investing/retirement/taxes-and-retirement/pro-rata-rule.pdf

Filed under Investing, Personal Finance Tags:

How will this correction play out?

Written on March 2nd, 2018 by Jamesno shouts

Filed under Personal Finance Tags:

Pre-Retirement Survival Guide

Written on February 10th, 2018 by Jamesno shouts

Everything you always wanted to know, in one handy reference guide:

Filed under Miser Tip, Personal Finance Tags:

2018 Tax reference / Key Financial Facts

Written on January 5th, 2018 by Jamesno shouts

Interested in the tax reform info for 2018? Or maybe SS/Medicare info? Or simply retirement plan limits? Here is the latest quick reference guide:

The Advisory Firm Tax Facts 2018

Video: Tax changes 2018 – How it affects you.

Written on December 18th, 2017 by Jamesno shouts

Tax reform bill summary

Written on November 3rd, 2017 by Jamesno shouts

From a quick scan it appears to me that congress is trying to get folks to take the standard deduction vs. itemizing on their taxes.  On the schedule A they are trying to eliminate deductions for Medical expenses, state taxes and capping property tax deductions at $10k.  Higher income folks and those that live in states with high property and state income taxes are not going to be happy.  Any new home purchases will also have a cap of $500k for mortgage interest deductions.

This website has a good summary:

https://www.thefiscaltimes.com/2017/11/02/Read-House-GOPs-Tax-Bill-or-Summary-Key-Points

Filed under General, Personal Finance Tags:

social security benefits rise for 2018 but……….

Written on October 13th, 2017 by Jamesno shouts

You are getting a 2% bump in benefits in 2018, but it will probably be offset by higher medicare premiums:  https://www.forbes.com/sites/janetnovack/2017/10/13/gotcha-social-security-benefits-rising-2-in-2018-but-most-retirees-wont-see-extra-cash/#43a72fef5831

Filed under General, Personal Finance Tags:

Financial Advisor Credentials?

Written on October 12th, 2017 by Jamesno shouts

Resource on Clark Howards website to wade through the bogus ones:  http://clark.com/personal-finance-credit/investing-retirement/financial-advisor-designations-this-free-tool-sorts-through-the-alphabet-soup

Filed under Personal Finance Tags:

Personal Finance FYI: are you due a tax refund on your stock options or grants?

Written on September 7th, 2017 by Jamesno shouts

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