Do I Need a “Tax What-If?”

First, let’s define a tax “what-if”.

A “what-if” tax report is a tool you can use to help you make important decisions regarding all kinds of financial decisions.  For example:

  • Are you buying a house?  What will your tax return look like if you have a 15-year mortgage versus a 30-year mortgage?
  • Thinking about starting an IRA?  How much will you save in taxes and more importantly, how much will you owe when you take income in retirement from that IRA?
  • Want to convert your IRA to a Roth?  What are the tax consequences now and in the future.

There are numerous decisions both financial and personal that can dramatically change your tax liability.  The problem is your tax preparer is a “tax historian” who applies LAST YEAR’S tax laws to LAST YEAR’S decisions.  A tax “what-if” is designed to help you project the tax impact of almost any decision both now and in the future.

Another important question a tax “what-if” helps you answer is “what happens when?”

One of the largest surprises in tax planning is once one spouse is gone.  While your taxes may look one way while you and your spouse are both alive, when one of your passes away, the tax liability increases substantially if the same income is taken as a single person.  What happens when I file as a single person is one of our more popular tax “what-if” reports.

Other examples of “what happens when” reports we offer are:

  • What happens when I take an extra withdrawal from my IRA to go on vacation?  (you may be very surprised by the impact!)
  • What happens when I sell my house and rent an apartment instead?

Call us to today to learn more and get your “What-If” tax reports.

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