Lots of exciting new chapters happening personally in my life the last couple of years with a backdrop of the Trump presidency and the aura of anger, depression, and hopelessness that the current administration and current Congress seems to be fostering over our entire nation.
As a person who cares about the environment and the future health of our planet and children, it's been a frustrating year politically, though honestly I don't see too much of a difference from when Obama was in charge in terms of some of the issues that really matter, such as real action towards addressing climate change, ending the military industrial complex, ending for-profit prisons, fixing a failing educational system, or addressing the issues of poverty, homelessness, and hunger that are byproducts of automation and our current economic system. It's definitely bad and seems to be getting worse, but least we haven't had nuclear war with Korea (yet!). Hopefully we won't go to war. On the bright side, I feel like at any given moment, we can turn things around and do things better. With the power of the internet and television and radio, I feel like we're always one moment away from world peace, if we just all decided that's what we were going to manifest. I'm praying this is the low point before we turn things around.
The latest blow to progress is the new tax reform bill. If you're reading this, it's likely that the tax bill doesn't help you much. That's because the vast majority of changes to the tax code are for the benefit of corporations and the ultra-wealthy. There are some changes to tax brackets and deductions, but overall I don't see it as huge change for the average American.
One of the big changes is that state, local, and property tax deductions will be limited to $10,000 per year TOTAL. In a high-tax state like California, where most of my clients reside, this is not good for you. If you look at your last year's tax return and you itemized your deductions, have will have a schedule A. (If you are looking for Schedule A, in your copy of your return it is just after the second page of the 1040 and before any of the other lettered or numbered schedules). On line 9 of the Schedule A, if the number on line 9 is more than $10,000, that change hurts your tax situation. This change makes the reform bill seem like it was aimed at states like California, New York, and New Jersey; I think it was.
Other random changes include no more deductions for business entertainment, so say goodbye to deducting your Warrior's tickets if you were doing that (though business meals are still 50% deductible).
The estate tax exemption is doubling, though most people didn't have more than 5 million in assets to worry about that anyways, but now you can die with up to 10 million dollars in assets before your heirs have to worry about the estate tax.
There are some major corporate tax cuts, which is great if you're a profitable corporation, though the most successful corporations are now multi-national and have already sent most of their profits offshore and don't pay tax here in the US anyways. The corporate tax cuts are permanent and the individual tax cuts are temporary, so that gives you some idea as to who's interest the Congress is serving.
Solar and Electric Vehicle credits managed to survive the chopping blocking.
While it is a fairly big reform to a system that hasn't been changed much in decades, most of the changes don't really do too much to affect your day to day life. The yearly tax filing (financial census form) will still need to be completed each year with mostly the same data being gathered, it will just have to be run through different tax tables. My team and I will be ready to help you through it and make it as easy and painless as possible.
Keep an eye out for my organizer in early January and keep it in a file with all your other tax documents to be ready to bring to me come tax time.
Happy Holidays and here's to hoping 2019 is a good good year!
Love,
Eric Rheinheimer
As a person who cares about the environment and the future health of our planet and children, it's been a frustrating year politically, though honestly I don't see too much of a difference from when Obama was in charge in terms of some of the issues that really matter, such as real action towards addressing climate change, ending the military industrial complex, ending for-profit prisons, fixing a failing educational system, or addressing the issues of poverty, homelessness, and hunger that are byproducts of automation and our current economic system. It's definitely bad and seems to be getting worse, but least we haven't had nuclear war with Korea (yet!). Hopefully we won't go to war. On the bright side, I feel like at any given moment, we can turn things around and do things better. With the power of the internet and television and radio, I feel like we're always one moment away from world peace, if we just all decided that's what we were going to manifest. I'm praying this is the low point before we turn things around.
The latest blow to progress is the new tax reform bill. If you're reading this, it's likely that the tax bill doesn't help you much. That's because the vast majority of changes to the tax code are for the benefit of corporations and the ultra-wealthy. There are some changes to tax brackets and deductions, but overall I don't see it as huge change for the average American.
One of the big changes is that state, local, and property tax deductions will be limited to $10,000 per year TOTAL. In a high-tax state like California, where most of my clients reside, this is not good for you. If you look at your last year's tax return and you itemized your deductions, have will have a schedule A. (If you are looking for Schedule A, in your copy of your return it is just after the second page of the 1040 and before any of the other lettered or numbered schedules). On line 9 of the Schedule A, if the number on line 9 is more than $10,000, that change hurts your tax situation. This change makes the reform bill seem like it was aimed at states like California, New York, and New Jersey; I think it was.
Other random changes include no more deductions for business entertainment, so say goodbye to deducting your Warrior's tickets if you were doing that (though business meals are still 50% deductible).
The estate tax exemption is doubling, though most people didn't have more than 5 million in assets to worry about that anyways, but now you can die with up to 10 million dollars in assets before your heirs have to worry about the estate tax.
There are some major corporate tax cuts, which is great if you're a profitable corporation, though the most successful corporations are now multi-national and have already sent most of their profits offshore and don't pay tax here in the US anyways. The corporate tax cuts are permanent and the individual tax cuts are temporary, so that gives you some idea as to who's interest the Congress is serving.
Solar and Electric Vehicle credits managed to survive the chopping blocking.
While it is a fairly big reform to a system that hasn't been changed much in decades, most of the changes don't really do too much to affect your day to day life. The yearly tax filing (financial census form) will still need to be completed each year with mostly the same data being gathered, it will just have to be run through different tax tables. My team and I will be ready to help you through it and make it as easy and painless as possible.
Keep an eye out for my organizer in early January and keep it in a file with all your other tax documents to be ready to bring to me come tax time.
Happy Holidays and here's to hoping 2019 is a good good year!
Love,
Eric Rheinheimer
RSS Feed
