Bill Artseronian•Director of Tax Services, Ritholtz Wealth Management
Executive Summary
12 quotes
Concerns Raised
Investors often misunderstand the difference between tax deferral and tax avoidance, leading to unexpected future tax bills.
Upcoming legislative changes will reduce the value of itemized deductions for the highest earners and introduce a floor for charitable gift deductions.
Small business owners risk losing the 20% QBI deduction if they fail to meet specific wage or asset requirements.
State-specific tax laws, like New Jersey's lack of tax-loss carryforwards, can complicate standard tax planning strategies.
Opportunities Identified
Utilizing the newly increased $40,000 SALT deduction, especially for those with incomes below the $500,000 phase-out threshold.
Executing a 'mega backdoor Roth' in eligible 401k plans to build a significant tax-free retirement fund.
Employing 'bunching' strategies with Donor Advised Funds to maximize charitable deductions in a high-income year.
Strategically timing the exercise of stock options to fill up lower tax brackets without triggering a higher rate or the AMT.