GMB Ep #96: 5 Year End Financial Moves to Make With the Tax Bill Looming

 

As we covered in the previous episode of Grow Money Business, the House Ways & Means Committee recently released proposed tax reform legislation that brings significant changes to the current levels of taxation. This week, Grant dives into five strategies you can utilize to take advantage of the substantial changes introduced by the proposed tax bill and reduce your tax liability. Throughout the episode, Grant reviews some of the sections of the tax code that will likely be updated by the new legislation and actions you can take within this year to make the best of the current tax code.

 

 

Show Notes

[01:52] Background and Progress – Grant starts the conversation with a brief review of the previous episode, explaining why he believes that the proposed tax bill is more likely to be passed in its current form.

[06:11] Profit Distributions From S-Corps  – The new proposed legislation reforms a set of provisions that will tax S-Corporations’ profit distribution at a higher rate. Grant emphasizes the necessity of delaying expenses and increasing the income for this year.

[08:51] Estate Taxation – Grant dives into the effects of the proposed provisions for estate taxation, revocable and irrevocable trusts, and how to take advantage of the current thresholds and exemptions

[13:15] Grantor Trust – The proposed legislation includes some provisions that take away some of the planning opportunities related to trusts that are currently available for taxpayers. Grant shares his take on how to prepare for these upcoming changes.

[18:14] Family Limited Partnership – Grant shares his thoughts on taking advantage of a family limited partnership’s marketability and minority ownership discounts for estate planning.

[23:22] Roth Conversions – The new legislation comes with several changes to the Roth conversions. Grant discusses the importance of the pro-rata rule, which you need to keep in mind if you’re planning to do a Roth conversion of pre-tax dollars.

[33:01] High-Income Earners – High-income earners will have to pay higher tax rates with the proposed tax bill. Grant scrutinizes the necessity of having fewer deductions to increase the income under the current tax rate.

 

Resources

​Ep #95 – We Have a New Tax Bill [And It’s a Whopper]
growmoneybusiness.com/podcast/we-have-a-new-tax-bill-and-its-a-whopper

Posted in Financial Planning, Retirement, Succession & Estate Planning, Taxes & Accounting and tagged , , , , .

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