Tax strategy scan

Although designed to spur productivity, the Tax Cuts and Jobs Act could have the reverse effect.

While it offers a hefty tax deduction for pass-through income, an expert says the rules are a "convoluted mess.”

One strategy includes encouraging clients to wait until the age of 70 to start collecting Social Security benefits.

The effects are looking like "every other much-hyped tax cut of the past three decades.”

Although annuities incur taxes and costs, clients "can invest the same amount into a diversified municipal bond portfolio and pay no taxes,” an expert says.

Many are unaware that they are responsible for a majority of their medical expenses, aside from premiums and coinsurance costs.

It pays to review the differences between traditional and Roth IRAs.

Homeowners have fewer options as state and local deductions have been capped under the new law.

Combating these misconceptions may help taxpayers maximize benefits.

Although funded with after tax dollars, what clients owe will be lower than the liability on traditional IRA withdrawals in retirement.

One strategy for clients to continue their philanthropic work and reduce their bill is to bunch multiple years of donations into one with a donor-advised fund.

The added savings could be used to pay off student loans as well as increase mortgage payments and retirement plan contributions.

The products can offset potential losses from lowered state and local deduction limits.

The right strategy can put them “in the 0% tax bracket,” an expert writes.

Underlying strategies make them more tax-efficient than actively managed mutual funds, an expert says.

Claiming above-the-line tax write-offs doubles the standard deduction.

Clients may consider changing their business structure under the new law.

The rewrite could affect how these firms value potential buyout targets.

Seniors are less likely to itemize tax deductions this year as a result, an expert says.

The law allows clients the ability to make tax-free withdrawals for elementary and secondary school expenses.