Single Point of View

Single Point of View is our way to occasionally share planning ideas relating to personal finance. Our goal is to pass along concepts that you may not be exposed to on a daily basis.

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Year-End Tax Reform Planning

Given the passage in both the House and Senate of the Tax Cuts and Jobs Act, the stakes for year-end tax planning are higher than usual.  We do not know what final legislation will look like when it comes out of reconciliation but there are themes in the House and Senate tax bills that give us insight into beneficial tax moves to make prior to year-end.  We’ve highlighted some of the proposed changes and related planning opportunities to consider. Deductions Both the House and Senate plans agree on increasing the standard deduction amount, nearly doubling the current allowance:   Current (2018) House Senate Single $6,500 $12,200 $12,000 Married $13,000 $24,400 $24,000 Head of Household $9,550 $18,300 $18,000 On the flip side, the proposed legislation makes significant changes to expenses that are allowed as itemized deductions.  Some notable changes include: Medical expense deduction – the House bill eliminates the deduction completely while...
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