Tax Talk

Tax Talk: After Election Income Tax Thoughts

By Professor Anthony Rivieccio MBA PFA

So, it looks like Donald Trump won the US Election. And with a slim majority in Congress it’s safe to assume that some of his tax policies might get passed

Without getting too specific in this article , my immediate thoughts after the election

* Renewal of the 2017 Tax Laws

From a standpoint of the economy , it looks solid that Trump will renew his 2017 tax game plan . The tax cuts , like 2017, could spur , consumer , business & economic growth

* State & Local Tax Deductions ( SALT ) deduction

Since 2017, I think Trump realizes that his cap on this deduction hurts ” high tax” States. I think he realizes property taxes are not deductible currently under this method and I believe he will revisit this and take off the cap , like it was , prior to 2017.

* Child Tax Credits

It seems whether your Democrat or Republican — the children win!. More children Tax Deductions and credits are promised and expected

* No Tax on Tips

Do you believe it ? I’m not sure but I think most economists will agree, it’s more hype than substance.

* Tariffs

Is importing goods at a high price and is it a good idea? Well , for foreign economies, it could be a hurtful idea but for the US, the hurt could be minimal. Yes, higher prices could be transferred to the consumer but note that ” trade” only represents about 10% of our economy. And yes the extra money ” could be ” used to pay for tax cuts.

So, 2025, will bring in the Trump continuation of an Income Tax revolution. Trump & Congress must remember that all this economic growth, through lower taxation must be balanced by additional revenue or lower spending. Tariffs alone will not do it. And The Children win! .

If you need specific assistance, from budgeting, to taxes, to investments and retirement, feel free to reach out!. You get easy access to our team of Certified Financial Planners®, who can answer your questions and provide guidance

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial planning & advisory firm, opened in 2021.

Mr. Rivieccio pens a financial article called “Money Talk” along with ” Financial Focus”. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The New York Parrot, The Bronx News, thisisthebronX.info , The Bronx Chronicle & The Parkchester Times.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Can Hurricanes Helene & Milton be tax deductible?

By Professor Anthony Rivieccio MBA PFA

In late September, Hurricane Helene ravaged parts of Florida, Georgia, North Carolina, South Carolina, Virginia and Tennessee. Two weeks later, Hurricane Milton brought high winds, tornadoes and flooding through the middle of Florida.

Affecting both insured and uninsured homes, the losses from both storms could amount to tens of billions of dollars.

Certain victims can amend 2023 tax returns to claim a tax break for recent losses, known as the “casualty loss tax deduction,” according to the IRS. But the calculation is complicated.

The 2017 Tax Laws temporarily restricted eligibility. Only losses in federally declared disaster areas will qualify through 2025.

When there’s a qualified disaster loss, there is no 10% AGI limit, and victims can add their loss on top of the standard deduction.

That means they can claim the deduction even if they don’t itemize tax breaks.

However, we haven’t had any qualified disasters, as designated as such by Congress, since late 2020.

So what’s deductible ?

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

The SALT Tax Deduction By Professor Anthony Rivieccio MBA PFA

By Professor Anthony Rivieccio MBA PFA

State & Local Taxes deduction (SALT)!

It’s in the tax code. Prior to 2017, you could have deducted any amount of State, Local & Property taxes . From today, to 2025, those amounts have been capped to $10,000. If your over that amount, in short, your screwed!.

Who’s fault is that? Congress, under the leadership of Donald Trump. He decided at that time to ” simplify” the tax code ( into a postcard ) and hense, eliminate many personal tax deductions .What was the trade-off? Personal tax cuts.

Congress briefly weighed doing away with the SALT deduction cap earlier this year, but the effort never made it off the ground. The cap is poised to sunset at the end of 2025.

Many organizations, including The Tax Foundation estimates that it will cost the US Budget $10 billion, per year .

In my opinion the problem is ” Property Taxes”. Because of this, property taxes, in high tax related States, easily will get them over the $10,000 limit and will therefore lose a portion of tax deductibility.

So is it worth getting rid of SALT? Keep the SALT? Or maybe we need Pepper?

Make sure you vote correctly in November.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: Taxes, Retirement & The 2024 Election

By Professor Anthony Rivieccio MBA PFA

Guess what?

You can’t control the election outcomes or what the market may or may not do based on election outcomes. You can however, build your own retirement economy and your own desired market experience that revolves around your lifestyle and what you want.

In times of great change, it is only natural for people to wonder and worry, even more so, as we head into what appears to be the most contentious election in modern history.

Predictions are being made based on history — the months and quarters that are most likely to be positive and negative, as well as the likelihood of a positive market. Some are showing likely upside and downside based on which party is elected in each branch of government.

Now do we currently have economic problems: We have plenty !

The economy and markets are still responding to the highest inflation numbers since 1981. Interest rates have risen faster than any period in our modern history. The U.S. is also involved in at least two wars, depending on how you count the U.S. military engagement at the border and abroad. U.S. debt by household is as high as it’s been in decades.

But this article is about taxes, right? Raising taxes, in theory , increases Government revenue and vice versa

So what do they do when they need to raise revenues? Increase taxes and reduce deductions. The lie is this is only on “the rich.” This approach to increasing taxes — introduce a tax “targeted at the rich,” then after it gains acceptance, roll it out on the masses — has a long history. The federal income tax — made possible in 1913 with ratification of the 16th Amendment — was originally introduced as a way to make the wealthy pay their fair share.

So let’s get to the BOTTOM line: Your Taxes & Retirement

If you have at least $500,000 or more, and your retirement requires $100,000 a year to maintain your lifestyle, $65,000 to $80,000 of your retirement is under attack. The good news is that there is a preferential tax code now. Investment assets are near all-time highs, and inflation has been tamed somewhat for the moment.

Here are some tips for election year 2024

Now’s the time to make tax minimization moves on your retirement money while tax rates are at all-time lows
Insulate your investments from market crashes, before they come, whether it happens this year or a later year
Set up retirement income layers that are protected from economic and market volatility so your lifestyle doesn’t go on a stock market roller coaster ride
And certainly don’t wait in the hopes the market will be higher just before or after the election in November, or that your chosen party will all of a sudden start lowering taxes to benefit you

The Good news is that both candidates are favorable to lower taxes and seniors. The Bad news , we don’t know what really is going to happen, regardless of person or party

Make your moves, NOW!

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Taxing Unrealized Capital Gains: We have it now!

By Professor Anthony Rivieccio MBA PFA

So, what is a unrealized capital gain? You hear the Kamala Harris campaign talk about it all the time. You hear people, like Donald Trump, say it will kill the economy. So, what is it?

A simple definition:

Unrealized capital gain/loss. An increase/decrease in the value of a security that is not “real” because the security has not been sold.

An example:

If, say, you bought 100 shares of stock “XYZ” for $20 per share and they rose to $40 per share, you’d have an unrealized gain of $2,000. If you were to sell this position, you’d have a realized gain of $2,000, and owe taxes on it.

So in simple terms, unrealized is when you do NOT receive the monies and a realized gain is when you do.

So recently while teaching an income tax class, one of my students brought it up in conversation. They wanted me to explain it further.

I told them that I would give them my definition in non political economic terms.

So, is it bad for our economy ? My answer: I said, ” we have it now “!. Yes , confusion on my students faces appared.

So I gave the example; let’s say you have extra money you wanted to put away long term. So you go to the bank and open a 5 year CD, with interest.

Every year, you make interest. Every year, you decide to leave the interest in the account. Every year you get a 1099 form from the bank because the interest must be declared on your taxes– even though you left your interest in the account ( sounds like your savings account too, right ?) .

How much tax are you paying on ” interest income “? Basically, it’s your tax bracket!. For most, it will be 25%.

Did the economy die? No!

Now, I’m not advocating to tax unrealized gains! I’m just saying we have it already ! My own opinion; it’s a tax (bs) expense to the consumer and businesses

More importantly, tax policy is indeed very important to our economy, so please do your research before going to the polls later this year

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx