74,900 Pages Missing from Your Instruction Manual. It’s Fine Though, Right?
On our podcast episode with tax and business strategist, Ed Cotney, we had an interesting concept pitched our way. In Ed’s estimation, the vast majority of people are only utilizing about 100 pages of our enormous federal tax code. Now you may immediately jump to the conclusion, “The entire tax code doesn’t apply to me.” Correct. But do you think there might be something in the 74,900 pages that does apply to you?
Now before you hop on Amazon and try ordering a copy of the US Tax Code (killer of even the worst insomnia), think about this: you should be getting proactive help from your financial planner, CPA, or estate attorney. Why don’t you? Because many of these professionals have a niche or system that rarely deviates from one client to the next.
It is sad, but true.
So, what is one thing you can do to better yourself off, regardless of tax code, bracket, current law, advisor, etc.?
In his book, Tax Secrets Made Simple, Ed stresses the importance of knowing how to utilize “Schedule A Line 14” (this blog was written in 2020, so that line may change). That’s right, one specific line in your tax filing. And not only should you understand it, but you should also confirm that the professionals helping with tax, estate, and wealth management understand it as well.
IMPORTANT NOTE REGARDING LINE 14
Assuming you haven’t already looked up what line 14 references, it is the summation of your gifts to charity. Where this becomes strategic is when you start donating stock versus cash, incorporating charitable planning in your estate plan, or any of the many other ways in which non-cash donations can help you realize a significant decrease in your taxes today, while minimizing interruptions to cash flow today.
If you can wrap your head around this OR your team of tax, estate, and wealth managers can put together an effective plan to leverage “Schedule A Line 14,” you will be well on your way to developing an integrated, tax efficient wealth and legacy strategy.
Kingsview Wealth Management does not provide tax, legal or accounting advice. The information was prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.