Maximizing Bank Deposit Yields, Tax Losses, Real Estate Appraisals After Death

In this episode of the Planned Solutions Incorporated Podcast, With interest rates are significantly higher than they were last year, this is a good time for savers to review their cash management strategies to ensure that they are maximizing the interest rates they are earning on their savings. This may involve shifting money to account types that pay higher yields, comparing the rates that are offered by different institutions, and ensuring that accounts are earning the highest amount offered by the institution. Also, Investment tax losses may allow taxpayers to claim a tax deduction on their income taxes. However, the impact of these losses is often somewhat muted. Tax losses are first used to offset taxable gains. Then up to $3,000 of any remaining net loss may be used to offset the taxation of other income. Finally, any excess unused losses are carried forward to the following tax year. And, When an individual passes away their non-retirement assets often receive a step up in tax basis. This means their beneficiaries inherit the property as of the date of death with no built-in tax gain or loss. However, to take full advantage of this provision in the tax code, it is important to be able to substantiate the value of the property at the date of death. In the case of real estate assets, this often requires an appraisal by a professional, or else the value may be open to debate. Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The IRS finally provided guidance that State inflation relief payments, including the California Middle-Class Tax Refund payments, are not subject to federal taxation. Recently we posted that taxpayers who live or work in the many California counties that were included in the Presidentially declared disaster area will have until May 15th to file their income taxes and pay any amount due. This deadline has since been extended to October 16th by the IRS and the State of California is expected to conform to the change. Of course, this does not mean that taxpayers must wait to file and, in many cases, will be better off filing earlier rather than waiting until the extended deadline. Chase Armer's book- Financial Planning Insights is now available at: https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected] The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action. Planned Solutions, Inc.