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12 Year-end Financial Planning Moves as Changes to the Tax Code Loom

The tax code is changing! I encourage you to review the CFP Board’s list of 12 year-end financial planning moves. Americans should especially be aware of these four possible changes looming in the tax bills likely to be finalized by Christmas.

1. This could be the last year that you will be able to deduct all state and local taxes (SALT), medical and dental deductions (must exceed 10 percent of AGI for those under age 65, 7.5 percent for those above); and miscellaneous deductions, like the write-off of tax-prep fees, job-hunting and business car expenses, and professional dues, if they totaled more than two percent of AGI. Try to bunch expenses before the end of the year, so that you can take as many deductions as possible.

2. Deductions for property taxes over $10,000 may disappear and the mortgage interest deduction may be limited to debt under $500,000 when the dust settles. Homeowners can consider pre-paying taxes or making January’s mortgage payment in December.

3. A tax change that could go into effect next year forces investors to sell stocks on a first-in, first-out basis. That makes it harder for investors to sell losers in taxable accounts to offset gains. If you want to take advantage this year, you can sell losing stocks this year according to some specific rules. If you have more losses than gains, you can deduct up to $3,000 against ordinary income; and if you have more than $3,000, you can carry over that amount to future years. If you’re going to sell something and replace it within 30 days, the new asset can’t be “substantially identical,” which is known as thewash sale rule. Avoid it by waiting 31 days and repurchase what you sold, or replace it with something that’s close, but not the same as the one you sold.

4. Another possible tax change lowers the tax on income flowing through some kinds of small businesses and solo enterprises. If you are self-employed, consider waiting until January to invoice for some work. The change also means contributions you make to a small business retirement plan this year are even more valuable than usual. If you open a qualified retirement account by Dec. 31, you have until the day you file your taxes next year, including extensions, to make this year's contribution. One plan to consider is the solo or one-participant 401(k) plan, which allows total contributions of up to $54,000 for 2017

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Karl Frank to Appear on KOA-AM Radio on December 6, 2017 at 9:10 AM

Mark your calendars!

Tune in to KOA-850 AM Radio on December 6, 2017 at 9:10 am to hear Karl Frank discuss a dozen year-end planning tips for 2017.

Karl is among a select group of CFP ® Board Ambassadorsappearing on radio programs throughout the country.

As a CFP Board Ambassador, Karl Frank represents the organization in the Denver area. Ambassadors are chosen based on their demonstrated leadership skills, passion for the financial planning profession and commitment to CFP Board’s mission to serve the public.

A & I Financial Services is committed to promoting financial education through public speaking, volunteerism, and educational events. Karl is a leading voice in the financial planning community, both nationally and locally. Karl launched Denver’s first Financial Planning Day in 2009 and has helped financial planning professionals in other cities launch similar events. He served as the 2014 President of the Financial Planning Association of Colorado. Karl was selected as a "Leader in the Profession" by the Journal of Financial Planning. He is the author of Go Tax Free and an editor of Tax Facts.

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Go Tax Free

A&I Financial Services - Karl Frank Book - Go Tax Free






An assortment of tools and strategies that give readers of all backgrounds a clear, specific action plan for obtaining the maximum allowable control over when and how they pay taxes.
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