The turners reside in a state that requires them to pay a state income tax. Currently their federal income tax rate is 25% and their state income tax rate is 6%. Historically Alan has prepared the couples taxes and claimed the standard deduction (12,600). Elyse would like to know if it is more beneficial to continue to do this or do an itemized deduction.
Recommendation:
My recommendation would be to do itemized deductions vs. the standard deduction. In reviewing your cash flow statement (pg. 7 & 8) there is a total of $12,852 worth of deductions that you could claim (see below). You would also be able to claim mortgage interest. I do not have this figure but seeing that your mortgage payment is $14,934 a month, and you have an outstanding loan balance of $144,981 I would want to at least find out that interest amount. At our next meeting please provide this information and I will be able to provide you with a more …show more content…
These documents are important in your overall financial plan. If something were to happen to you two your children would be left going through a lengthy probate process. Probate is the government’s method of transferring the ownership of all of your assets. This process can take a long time to settle and be very costly to your heirs. We recommend that you each have a complete set of estate documents including wills, durable powers of attorney with healthcare surrogate, living wills, and healthcare authorizations. These documents not only protect your assets at the time of your passing but also protect you if you were to experience a medical event where you became incapacitated and were unable to make decisions. I do recommend a minor’s trust so that if something were to happen to both of you, your children would have limited access to funds until they reach a certain age. Lastly, I recommend that you consider naming an initial guardian of your
Recommendation:
My recommendation would be to do itemized deductions vs. the standard deduction. In reviewing your cash flow statement (pg. 7 & 8) there is a total of $12,852 worth of deductions that you could claim (see below). You would also be able to claim mortgage interest. I do not have this figure but seeing that your mortgage payment is $14,934 a month, and you have an outstanding loan balance of $144,981 I would want to at least find out that interest amount. At our next meeting please provide this information and I will be able to provide you with a more …show more content…
These documents are important in your overall financial plan. If something were to happen to you two your children would be left going through a lengthy probate process. Probate is the government’s method of transferring the ownership of all of your assets. This process can take a long time to settle and be very costly to your heirs. We recommend that you each have a complete set of estate documents including wills, durable powers of attorney with healthcare surrogate, living wills, and healthcare authorizations. These documents not only protect your assets at the time of your passing but also protect you if you were to experience a medical event where you became incapacitated and were unable to make decisions. I do recommend a minor’s trust so that if something were to happen to both of you, your children would have limited access to funds until they reach a certain age. Lastly, I recommend that you consider naming an initial guardian of your