Video instructions and help with filling out and completing Why Form 2220 Deductions

Instructions and Help about Why Form 2220 Deductions

Welcome to thought-leaders featuring interviews with some of the best minds in the industry today's special guest is certified financial planner and registered investment advisor Bravo Dell wall rihwan I'm Steve savant syndicated financial columnist and talk show host in this segment we're talking about the basic understanding of tax deductions exemptions and credits for individuals to help you with your end-of-the-year appointments with clients and prospects all from Rob's popular mindmap seminar series but let's talk about this because you know we touched it yesterday I want to talk to me don't we talk about deductions I always go which one's my client always says to me is the deduction worth more is the exemption worth more or is the tax credit worth more so first of all we have to value these three things that are helping to kind of lower our tax bill right right well let's talk about deductions okay where do they found they're found on Schedule A which is typically the third page of someone's 1040 that they file first of all if someone does not make have enough deductions they take the standard deduction but most people I work with you work with nice people watching they itemize your deductions and examples of itemized deductions the very top thing is medical medical deductions and it's based on age as well as so people over 65 can get a little bit big better fit better benefit than someone under 65 something very common in Naples Florida as well as other parts United States as people are buying into these continued care facilities I mean you know go in will be a condominium will be a full scale as they age and they get less healthy and they'll have full skills nursing there and typically they'll pay a lump sum going in a large lump sum well in the six digits for that portion which is not refundable so maybe they put down 300,000 and none of us refundable they will get a percentage that they can write off on their medical as a medical charge that's not their housing issues such as their housing as well and then they have a monthly assessment easy to portion of that so we definitely keep an eye on that as well some long-term care premium can be here terrible deductions really spent some time in this show talking on charity but that's the big deductions not subject to AMT let me say this because I know that a lot of people are terribly given they have not only their money that they're adding direct cash gifts but they also they drive to these places they the government kind of gives you some mileage not cash tips exactly well it's that they gives you no clothing or furniture they get now you have to record this make sure you got a paper we moved from Chicago down to navel Florida this year we gave a lot of her furniture way to chair of organizations and we recorded it all so we'll get some deductions this year taxes real estate taxes state income taxes if your state has an income tax can be deducted here on professional fees this is big so would you recommend paying my state taxes before the end of the year so if I knew I had stuff coming up well so many games to be played there well it depends AMT I'll turn a minimum tax and they take that away from you but we look we've put it in our chart programs in term does it make sense it really depends what other type of income you have mortgage interest that's a big one that people will deduct professional fees this is this is something that is often phased out by alternative minimum tax but sometimes over the head of CPA their attorney their their financial planner their money manager can all be deduct so so if I'm a registered investment advisor many of our the audience are my client could deduct that fee that could deduct the CPAs a fee for doing their taxes and any other things that are professional in the fashion and tax related usually two before them uh let's talk about the significant deduction so he said long term cure that's real big that based on ages so a fifty year old can be ducked up to seven hundred dollars for long term care premium if he's 71 it's for forty six hundred thank you so so it ranch it's up by age right and so whatever my premium is and I look at the age column I can pretty much say this is what I get to take off every year correct exactly right and his agent gets higher and as you age also this is something where as a phase-out on the medical expense so if you make a hundred thousand dollars and you're under the age of 65 the first ten percent or ten thousand dollars you do not get to claim anything above that you do same example it's seventy five hundred for those over 65 mmm okay let's talk cheerful gifts this is one of my favorite areas to talk about example of charitable gifts can be a donor advised fund be outright gift of charity you can get a chair remainder trust and we're gonna be breaking this down but I wanna start a very basic level if you give to a private Family Foundation the maximum income tax deduction or how much you can take against your just gross income is thirty percent if you're given low basis stock it's 20% of the AGI if you give cash to a public charity hmm or to a donor advised fund you can deduct up to 50% of your justice half of what you I am on your AGI whatever that number is at the bottom of your first page of your