Securities offered through HD Vest Investment ServicesSM, Member SIPC
Advisory services offered through HD Vest Advisory ServicesSM
6333 N. State Hwy. 161, Suite 400, Irving, TX 75038 (972) 870-6000
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Today’s Discussion
• Why are taxes important?
• What tax laws are driving tax rates?
• What is my potential tax liability?
• Which financial areas should I review?
• What are my next steps?
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A Question For You?
Why are taxes important?
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Why Taxes Are Important
Every dollar you spend on federal,
state, county, city and school
district taxes is a dollar you cannot
save or spend yourself.
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Result of the Tax Law Changes
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Tax Freedom Day 2015
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Changes Over Time
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What Laws are Driving Tax Rates
• American Taxpayer Relief Act of 2012
– Passed by Congress on January 2013
– Since 2013 gridlock has halted most
new legislation
– Continued many of the Bush Era tax
cuts
• Patient Protection and Affordable Care Act
– Commonly called “Obama Care”
– PPACA is aimed at reducing the
number of uninsured Americans and
reducing the overall cost of healthcare
– The Act created several new taxes that
have phased in over the last few years
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What Is My Potential Tax Liability?
• Ordinary income tax rates
– The highest federal marginal tax rate is 39.6%
• Capital gains rates
– The highest federal capital gains rate is 20%
• Qualified-dividend tax rates
– The highest qualified dividend rate is 20%
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2015 Numbers?
• PEP and Pease phase outs
– $285,250 for single, $309,900 for married filling jointly
• Alternative minimum tax rates are established
– $53,600 for single, $83,400 for married filling jointly
• Medical expenses must exceed 10% of AGI floor to be deductible
• Federal estate tax applicable exclusion, gift tax lifetime exclusion base is
set at $5,430,000
– Estate and gift tax rates are 40%
– Annual exclusion gift limit is $14,000
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Medicare Tax Rules
• 0.9% increase for wages or self-employment income over threshold
• 3.8% new tax rate on investment income when MAGI exceeds threshold
– New tax is in addition to current income taxes
– Tax on investment income also applies to
trusts and estates
• Applies to “high-income taxpayers”
– Single – MAGI is greater than $200,000
– Joint – MAGI is greater than $250,000
– Threshold is not indexed for inflation
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CCH Analysis of the Post 2012 Net Investment Income and Additional Medicare Taxes
Medicare Tax Changes
• Net investment income includes:
–
–
–
–
–
Taxable interest
Dividends
Capital gains
Annuity income
Income from passive activities
• Net investment income does not include:
– Exempt interest
– Retirement plan distributions
– Income from an active trade or business
CCH Analysis of the Post 2012 Net Investment Income and Additional Medicare Taxes
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Planning Strategies
Review your portfolio now, especially if you are a
higher-income taxpayer
– Long-term capital gains rates are
historically low
• Should you reposition?
– Assess your holdings of dividend-paying
stocks
• Should tax-deferred allocations favor
dividend-paying stocks?
– Plan for Medicare taxes (if applicable)
• Schedule an appointment for projections .
• Schedule an appointment to consider
portfolio changes that may lessen
exposure.
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Which Dates Are Important
•
•
•
•
April 15
October 15
November 8th
December 31
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Why Taxes and Financial Services Together
FOR INTERNAL USE ONLY
Financial Check Up
8 Wealth Management
Issues®
1.
2.
3.
4.
5.
6.
7.
8.
Investment Management
Cash Flow and Debt
Management
Family Risk Management
Retirement Planning
Education Planning
Legacy and Estate
Planning
Business Planning
Special Situations
Our Planning Process
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Evaluate your current tax situation
•
Establish goals and objectives
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Create a plan
•
Evaluate strategies and alternatives
•
Implement the plan
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Your Next Step
Schedule an
appointment to
review your 1040
Analyst® report.
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Investments are subject to market risks including the potential loss of principal invested.
HD Vest Financial Services and its affiliates (collectively, “HD Vest, Inc.”) do not provide legal, tax or
accounting services. You should consult your tax and legal professional regarding the tax and estate
planning implications of any investments.
HD Vest Financial Services® is the holding company for the group of companies providing financial
services under the HD Vest name.
Securities offered through HD Vest Investment ServicesSM, Member SIPC
Advisory services offered through HD Vest Advisory ServicesSM
6333 N. State Highway 161, Fourth Floor, Irving, TX 75038 972-870-6000
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