Video Transcript:

Hey guys getting a lot of questions right now from clients as to what’s going on in Washington DC with the proposed tax legislation keep in mind all of this is proposed to what actually happens will likely be way different than what is being proposed today but there’s some highlights here that I thought would be relevant for our clients situation that I thought I would just share quickly I’m sure going to miss some of this cuz I’m trying to get this in just some bullet point fashion but there’s a couple things with income taxes first and foremost so what’s being proposed right now how’s the top marginal rate today federally is 37% if you’re married filing jointly and earned approximately over 628000 you’ll be at 37% tax bracket what’s being proposed is that number is going to come down to $450,000 if you file a joint tax return and the marginal rate increases to 39.8 first and second are on the capital gains taxes so right now capital gains tax under a certain income could be 0 to 15% and then a higher level of income I think it’s 508 you move up to a 20% tax rate that number is coming down to 400000 for a single filing tax payer 454 married filing jointly anything above that income goes from the 20% long-term capital gains rate to a 25% capital gains tax rate okay now again this is proposed that nothing’s been been done you okay in addition to that Ira rules big changes proposed to your number one the backdoor Roth where you could contribute money on a post tax basis to a traditional IRA and immediately convert to a Roth looks like they’re proposing that that goes away also self-dealing in a business interest in an IRA if you’re a 10% shareholder to privately held company where you could invest in a company through an IRA a self-directed IRA some proposed changes on that front lastly estate taxes are in some major major changes here number one is state tax exemption as a whole was around 22 million dollars that number is going to be cut in half if you’re single again that number is going to be cut in half other potential changes their gray 4 status may be going away there may be some questions on that feel free to reach out to us there as well things that are not addressed in this tax bill our state local taxes certainly depending on what state you live in there’s a cap if you have state income taxes right now of no more than $10,000 for state and local taxes that affects States like California New York Illinois where property taxes and state income taxes are pretty high other states like New Jersey that’s not addressed as well as solving Social Security so to be determined again a lot of potentials here nothing’s been into yet if you have questions on this one of the discuss this further as it affects you or your situation please feel free to reach out to us we love to have a deeper conversation go to our website messages through social media love to have a deeper conversation.

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