OIL
OIL PRICES ARE UP 50% THIS TIME FROM LAST YEAR.
>>> PLANNING FOR RETIREMENT.
YOU CAN'T BEGIN TOO SOON.
WHAT YOU DON'T KNOW ABOUT
RECENT TAX CUTS AND THE JOBS
ACT COULD IMPACT YOUR GOLDEN
PARCHUTE.
PARCHUTE.
PARCHUTE. WE HAVE ELIZA WITH GREAT WATERS
FINANCIAL.
FINANCIAL. >> GOOD TO BE HERE.
>> A LOT OF CHANGES WHEN THIS
TAX ACT WENT INTO EFFECT.
WHAT DO YOU WANT PEOPLE TO
KNOW?
KNOW?
KNOW? >>
KNOW? >> THERE ARE FIVE THINGS YEWHO
ILL FOCUS ON TODAY -- WE WILL
FOCUS ON TODAY BUT I WANT TO
SIMPLIFY IT.
SIMPLIFY IT. HERE IS THE BOTTOM LINE.
THEY CUT TAXES BY $1.5 TRILLION
OVER THE NEXT EIGHT YEARS AND
IT'S GOOD FOR MOST PEOPLE.
WE WILL TALK ABOUT HOW TO TAKE
ADVANTAGE OF IT.
IT IS CRUCIAL YOU ARE AWARE OF
THE CHANGES AND HOW THEY EFFECT
YOUR SITUATION AND WHAT IS GOOD
FOR ONE PERSON IS NOT
NECESSARILY GOOD FOR ANOTHER.
>> YOU WILL GET INTO THIS
BECAUSE THERE IS STANDARD
DEDUCTIONS AND SOME OF THE
NUMBERS HAVE GONE UP.
LET'S BEGIN WITH LOWER TAX
RATES.
RATES.
RATES. >>
RATES. >> THE 25% TAX BRACKET WAS
REDUCED BY 12%.
THAT DOES NOT MEAN IT WENT DOWN
TO 13, IT WENT DOWN TO 22 BUT
THAT'S A 12% REDUCTION IN THE
AMOUNT OF TAXES YOU PAY
ANNUALLY.
ANNUALLY.
ANNUALLY. IT'S A PRETTY BIG DEAL.
TWELVE PERCENT IS THE NEW TAX
RATE, THAT WAS 15, THAT'S A 20%
DIFFERENCE THERE SO FOR A LOT
OF PEOPLE THEY ARE NOT GETTING
THE SAME WRITE OUT WHEN THEY
CONTRIBUTE TO THE 401K OR IRA.
YOU PUT THE MONEY IN PRETAX AND
IT GROWS AND THEN WHEN YOU TAKE
IT OUT YOU HAVE TO PAY TAXES AT
WHATEVER TAX BRACKET YOU ARE IN
DOWN THE ROAD.
>> THIS LEADS TO THE ROTH.
>> PEOPLE ARE CONSIDERING
PAYING THE LOW TAX RATE AND
HAVING IT GROW TAX FREE IN A
ROTH BUT THE RULES HAVE
CHANGED.
CHANGED.
CHANGED. LAST YEAR YOU COULD CONVERT
30,000 TO THE TOP OF THE TAX
BRACKET SO I WILL CONVERT 40
KNOWING I CAN RECHARACTERIZE
WHICH MEANS YOU CAN TAKE THE
EXTRA 10,000 INTO THE IRA BUT
YOU CAN'T DO THAT ANY MORE.
WE CAN'T DO RECHARACTERIZES IN
2018.
2018.
2018. >>
2018. >> A BIG CHANGE FOR THE STATE.
>> WE HAD A $5.6 MILLION GIFT
TAX AND ESTATE TAX EXEMPTION
THAT DOUBLED UP TO 12.2.
>> LIMITED ITEMIZED DEDUCTIONS.
>> THIS IS A BIG ONE.
MANY PEOPLE WILL NOT BE ABLE TO
ITEMIZE ANY MORE.
THE NEW STANDARD IS 24,000 FOR
A COUPLE AND EXTRA 1300 IF YOU
ARE OVER 65.
PEOPLE ARE SAYING I WILL TAKE
THAT, THAT MAKES SENSE, WHAT
ADDS TO IT IS YOU CAN'T MAKE
CPA FEES DEDUCTIONS OR WRITE
OFF ON REIMBURSED EMPLOYER
EXPENSES, THERE IS A POSITIVE
CHANGE IN THAT FOR 2017 AND
2018 ONLY THEY ARE LETTING YOU
WRITE OFF MEDICAL EXPENSES
ABOVE SEVEN AND A HALF PERCENT
OF YOUR ADJUSTED GROWTH INCOME.
OTHER CHANGES WOULD BE MORTGAGE
INTEREST.
INTEREST.
INTEREST. THERE IS LOT OF DEBATE.
YOUR SECOND MORTGAGE OR HOME
EQUITY LINE OF CREDIT MAY OR
MAY NOT BE DEDUCTIBLE.
IF YOU USED IT TO CONSOLIDATE
DEBT IT IS NOT DEDUCTIBLE.
FIRST MORTGAGES WERE CAPPED AT
700,000 AND THEN THE LAST THING
IS STATE AND LOCAL TAXES, A LOT
OF PEOPLE HAD 10,000 STATE
INCOME TAXES PLUS 4,000 IN
PROPERTY TAXES, THEY ARE CAPPED
AT 10,000.
AT 10,000. >> THERE IS A LOT TO CHEW ON
HERE.
HERE.
HERE. WE
HERE. WE DID NOT GET TO CHAIRTABLE
GIVING BUT YOU ARE PROVIDING