Q: Regarding the tax plan, are the changes going to affect us when we file our 2017 taxes?
A: When passed, the bulk of the changes in the new tax law will go into effect in 2018, so they will not be retroactive back to your 2017 taxes.
Q: Does the new tax plan do away with the 3.8% Obamacare real estate capital gains tax?
A: Thanks for reaching out to us. Under the new tax plan there will be no change to the 3.8% Obamacare surtax on investment income.
Q: With the new tax plan, can individuals still perform the backdoor Roth IRA in 2018?
A: Thanks for reaching out to us. It is our understanding that under the new tax plan you will still be able to take advantage of the backdoor Roth conversion strategy in 2018.
Q: What happens to the $4050 personal exemption in the new tax law? I just read on one site that it goes away. If so, then the benefit from the increase in the standard deduction is partially muted, isn't it?
A: Thanks for reaching out to us. Starting in 2018, the personal exemption will go away and will be replaced by a larger standard deduction. While this amount will still be larger than the old Standard Deduction + Personal Exemption, you are correct that it will be somewhat muted if you are comparing the old vs. new standard deduction.
Your Wealth Questions are common questions we receive from our “Ask an Advisor” tool. The Q&A’s are provided for informational purposes only and should not be viewed as investment advice or recommendations. This information is not intended to, and should not, form a primary basis for any investment decision that you make. As always, please contact us to discuss your specific situation.
