The strategy is about helping clients understand whether it's better to pay tax now or pay it later – when the tax rates are likely to be lowest? Below is the article - enjoy the reading!
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With everything that is happening to the economy, our entitlements and our new tax laws, especially, this idea must be clearly understood by all of us and easily shared with our prospects and clients. They must take advantage of this spectacular opportunity while they still can. Let’s get started.
The new tax law ELIMINATES the personal exemption, which would have been $4,100 per person this year, for everyone. People over and under age 65 lose this exemption.
Families with children that are dependent and under age 17 will now receive a $2,000 per child exemption up to seven children. As with all tax laws there are exclusions and exemptions to the rules which must be determined before taking the benefit.
Now, let’s start with the important change: The Standard Deduction. I did not provide any information for people under age 65 in the February or March newsletter. That was my mistake. I created confusion as it related to the over age 65 use of the standard deduction and I prevented a realization of how the standard deduction and new tax rates could be beneficial for people under age 65 for financial, income tax and retirement planning.
We will attempt to provide a few more details on how to use that information. Please note, you must understand that the examples given in the February, March and now this month’s newsletter, are based on what I believe would offer all of you with the most opportunities to provide prospects and clients with questions that would inspire action. It is important that these examples are not a “catch all” and you must study and practice so you can apply this information in unlimited ways, not just the examples given here.
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Keep reading the article for examples and strategies here.