The New Tax Law Changes EP.148

  • X <iframe frameborder="0" height="200" scrolling="no" src="http://traffic.libsyn.com/wealthtalks/Ep_148_The_New_Tax_Laws_Changes.mp3" width="100%"></iframe>

The New Tax Law Changes EP.148

Congress recently passed the biggest tax changes since 1986! In this episode, former IRS auditor Jack Cohen CPA shares what you need to know (for individuals and small business owners) about the new changes starting in 2018.
Click the playhead above to listen now or read the transcript below.

Optional Resources:
1. Call Jack’s office at 702-255-2330 for a complimentary tax review.
2. Read Jack’s article in the Living Richly newsletter and get a free 12-month subscription.

Get a Free Subscription

Transcript:

Tom: Welcome to Wealth Talks, where we talk about solutions, money and other things that create wealth in your life. John, we have a special guest by phone interview today, someone that we really admire and has saved us so much money that we just wanted to introduce him to all of our listeners. Jack Cohen, CPA, former auditor with the IRS. Go ahead and give a little bit of his background.

Wealth Summit 2018

John: His background, certainly. So, Jack was with the IRS for 33 years. In 2006, he received the David Bernard award for Employee of the Year. It’s like the Employee of the Year award for his division nationwide.

Tom: Wow!

John: And you worked in large corporate audits, right Jack?

Jack: That’s true. For the last 15 years I managed the Federal tax audits of Fortune 500 companies within the Philadelphia area, so…

Tom: Alright, wonderful. And then you want to tell a little bit about how we met, Jack?

Jack: Well, I guess we met a number of years ago. And I don’t recall all the details except that somehow, we ran across each other and turns out that we actually have a lot of common values, let’s put it like that. We kind of see the world the same way. And from a business standpoint I think we see the world the same way. And it’s all about how you can accumulate wealth, and in trying to accumulate wealth part of that is, is how can you pay the least amount of taxes.

Tom: Absolutely,

John: Yeah. I think Taxes is a big thing.

Tom: Some of the common things that we share are that, we always want to provide the highest service and to make sure that we’re not telling someone to do something that we wouldn’t do ourself.

Jack: I would say that it’s a 110% correct and just one of the many reasons why I like you guys. Because at the end of the day, you know, it’s about how can we do our best to help the client? And sometimes that works in our favor personally and sometimes it doesn’t, but it doesn’t matter.  As long as you’re helping the client out that’s all that counts.

Tom: We always sleep good at night doing that though, don’t we?

John: That’s right.

Jack: You do?

Tom: Yeah.

John: That’s right.

Tom: Alright, so we’re going to be talking today about some of the tax changes that are happening. There are some big tax changes happening this year with the new bill that is passed through Congress. At the end of the call today, we’re going to give you some gifts, those of you listening to the podcast, we have some special things for you, so continue on listening here with us. Jack, you want to go ahead and get started on some of the top changes that you’re seeing in the new tax law that affects individuals?

Jack: Sure. Well first off, let me just say, this is the first big tax reformat since 1986. And unfortunately for me or fortunately for me, I’m old enough to remember the tax reformat. How is it, do you see? Well guess what. You know, nobody likes change, and even CPAs don’t like change, but I’m sure the tax paying public is not going to like some of these changes. But these are a lot of changes and not everybody is going to be affected by them, and some people are going to come out ahead, and some people are not going to come out ahead.

But just to hit some of the big highlights. And some of these are kind of like the headline kind of stories. They’ve clearly lowered the personal tax rates on individuals. Not only have they lowered the rates, but they’ve kind of changed the brackets around. So, all things being equal, you know, where the top rate used to be like 39.6%, now it’s going to be 37%.

So, every single tax bracket has, the brackets themselves have changed and the actual rates have changed. And that’s really, really a good thing. There’s no question about it. Another big change for – again, these are going to be changes that are not going to affect your ’17 return, but are going to affect your 2018 return. And by the way, the only good news about this is that it’s still 2018, so in some cases there might be time to do things before the end of ’18.

One other caveat that I should have mentioned at the beginning before we go on to the next change, is the fact that even though congress has passed this law, the IRS still hasn’t come out with its interpretation of the law. They refer to it as the IRS regulations. And so, there’s a lot of ambiguity to some of this stuff and some of this new law, and at some point in time, hopefully soon, we’ll get the IRS’s opinion as to how they read this stuff.

The other big change that affects most people is, and normally everybody’s used to claiming dependence on the return, exemptions on dependence, well that’s going to change for ’18. And what’s going to happen is that you’re no longer going to get a deduction for your dependence. What you are going to do is get a tax credit. So, there’s going to be tax credits that are going to replace the actual deduction for the exemptions.

And again, I guess it depends on you know, where you sit tax-wise, you know, whether this works against you of for you. But a huge change, no more exemptions anymore.

Tom: So, Jack, can I just ask a question as a lay person here. That sounds like it could just be semantics, but it really isn’t because a tax credit is money that the government is giving you –

Jack: Absolutely correct.

Tom:  But a tax deduction is something that you said I never earned. Isn’t that right?

Jack: That’s right. There’s definitely a difference between getting a tax deduction and getting a tax credit. A tax deduction is worth to you in tax based on what tax bracket you’re in. So if I said, you get a tax deduction of a 100 dollars and you’re in the 25% bracket, you’d save 25 dollars. If you got a tax credit for 100 dollars, that’s dollar for dollar. So clearly, in the big picture credits are always better than deductions. Okay? But that’s a great point. We like credits.

Tom: Okay, good.

Jack: Okay. The other thing that they’ve changed in 2018, which actually we already see is what will affect clients going forward, has to do with alternative minimum tax. Alternative minimum tax was put into place many, many years ago because it was a thought to people who have higher rates of income were always going to get the benefit of getting deductions than people who are lower in income brackets can get.

And so, they put into law this alternative minimum tax that says people that make a lot of money always have to pay something. The problem was, is they never really indexed this thing for inflation. And so, when they put his in the law many years ago, not that many people had a pay AMT. Well, today, at least as of 2017 you have a lot of married couples where you have both spouses working. A lot of times they could be in an AMT situation.

Well in ’18, they finally re-indexed this to be a little more fair. And so for example, we’ve already done 2017 returns where people paid 15,000 dollars in alternative minimum tax. In ’18, it’s going to get cut in half. So, that’s a huge thing that could help people. And so, I might also add too, no different, not just us but any professional tax preparer, most softwares already have built in, the changes to 2018 tax laws.

So, whenever you finish your ’17 return, it may not be a 100% accurate, but we may be able to give you a better idea as to how you’ll fare for ’18. So…

John: Yeah, good to know.

Tom: So, Jack, I was in Dallas giving a little workshop here about three weeks ago, maybe four weeks now, I can’t remember specifically. And someone in the back of the room asked me a tax question and I couldn’t answer them because I’m not a CPA and I’m not a tax attorney. But they said that the HELOC deductible interest is going away with the new tax law. Is that true or not?

Jack: It’s partially true. Again, it has to do with what you use the money for. And from what I’ve been able to read, it appears that if the money was originally borrowed for improving your property, then it would be allowable. And if it was not, say it was used to pay off your credit cards, it wouldn’t.

Overall, to step back a little further, the mortgage on your personal residence, there used to be a cap. And now again, most people may not have realized this, but under the old law, if you owed more than a million dollars on your mortgage, you were actually limited into how much of an interest deduction you could take on your personal residence. Then again, most people didn’t have mortgages of more than a million. Well going forward in ’18, that million dollars is down to 750,000. So, if you have a high mortgage on your home, of more than 750, how much you can claim as an interest deduction could be limited.

And then to get back into your original question, they kind of eliminated the HELOC except if the money was used for the improvement of your home. So, there are some people that are not going to be able to claim the HELOC interest anymore and some still may be able to.

Tom: What about second homes, like maybe we have a summer cottage or we have a house by the lake. Are those interest rates going to go away as a deduction?

Jack: I don’t recall reading anything that they would, other than the fact that they still can’t go over the 750. So, I kind of believe that they’re still going to be okay. You have to keep in mind something else. One of the topics we haven’t touched upon is the tax deduction for state, local and property taxes.

John: That’s a big one.

Jack: And we also haven’t talked about miscellaneous deductions. And we haven’t talked about the fact that standard deductions are going to go up. What a lot of this is geared towards is, they don’t want people to have to itemize their deductions, to be honest with you. A lot of these laws where they eliminate some of these deductions are all kind of chiseled in a way of what we used to call itemized deductions.

And so, even if you have mortgage interests, let’s say on your primary residence or your home, you know, depending upon how much it is, and depending upon what the other itemized deductions you have are, you still might be better off taking the standard deductions.

John: Sure.

Jack: So, that’s kind of where they were going with this. I think they just wanted to have people end up taking the standard deduction, to be honest with you.  And as a segue, let’s talk real fast about the state, local and property tax deduction. It’s going to be capped to 10,000 dollars.

Now again, it all depends on where you live. If you live, say in California, where they have high state income taxes and high property taxes, this will definitely work against you. So, for example, if on average you pay California 40,000 dollars a year between your state tax and your property tax there, again this is property for personal residence, this has nothing to do with investment property. If outset you pay them 40,000, your deduction’s going to be limited to 10,000 dollars, okay?

Tom: That could really bite, because that’s going to make…

Jack: Absolutely, that’s going to be… Again, it’s going to mostly affect I think, people who live in states that have to tend to high income taxes and high property taxes. So that’s California, New York, New Jersey, Pennsylvania, Illinois. And so, the good news is while they reduced the rates and they changed the AMT, well this is definitely going to work against people who live in those states. There’s no question.

Tom: So Jack, I just have to stop and thank you for talking us into moving out of a high taxed – income taxed state to Nevada.

Jack: That’s right. And you know what, over the years we’ve gotten tons of people moving here from California. And I tell people all the time how the movie stars all have houses out here. You know, there’s a lot of strategy that determines where you live. Okay?

John: Yes. Absolutely. All right.

Jack: So after the tax law goes into effect, and people in California file their 2018 returns, I strongly suggest that the real estate market going to go up here in Nevada, okay? A lot of people are going to want to build their houses here. And that’s all I can tell you.

John: We just bought a hangar for our airplane from someone that lives in Ojai, California. And that’s exactly what he’s planning to do. He’s moving back to Nevada. Because he said this law is going to make it not worse living that close to the coast anymore.

Jack: And you know what I tell our clients from California? Move here. If you really miss California, go back on a vacation. You can have a hell of a vacation for what it’s costing you to live in California.

John: Yes, there’s a point there.

Jack: Because you can sell your home in California, literally buy a mansion here, have money left over, and go back to visit and vacation in California. Any time you want, how’s that?

Tom: Sounds good. Alright. So, what about the investment fees deduction? What exactly does that entail for people?

Jack: Well, they basically eliminated just about every miscellaneous deduction there is. So for example, let me give you a quick example. Employee business expenses, you can’t claim them anymore. The fees that you pay for us to prepare your tax returns are not deductible anymore. Most casualty losses are out. The only casualty loss you can claim is if it’s in a federally declared disaster area. They’re out. I’m trying to think what else. Alimony is going to be out, okay? Now again, when it came to people getting divorced, taxes were a big issue in having to negotiate a settlement, okay? And so, any investment advisory fees are going to be out.

What’s still in though, which is actually good for some people, is investment interests are still allowable. So for example, I’m sure this will hit close to home, if you borrowed money out of a whole life policy and used the money for business, that’s still a deductible investment.

John: Still a deduction, that’s good. It’s good to know.

Tom: Just the fees, not the interest.

Jack: These are not for the interest would be, correct.

John: Very good.

Jack: Moving expenses are out. Again, this is all in an attempt to basically pretty much carve out just about everything people did on the itemized deductions. So…

Tom: Just to clarify here for our listeners Jack, this is all on individual returns that we’ve been talking about up to this point, right?

Jack: Yeah, that’s correct. Totally different rules for business returns. But this is all individual, that is correct.

Tom: And what about the estate tax, changes in gift tax, changes in the new law?

Jack: Well, they’ve raised the limitations on those, of course. The Republicans of course wanted to eliminate estate tax altogether, but that was not done. But what they have done is raise the limitation, I believe from 10 million to 11.2 million. And so, in order to have to pay federal estate taxes has nothing to do with any estate state tax, but federal estate tax or estate has to be worth more than 11.2 million dollars. I personally am not there yet, but maybe one day. I’m just saying. I think wait… Tom and John, I have the point 2 already, I just need the 11.

John: There you go.

Jack: I’ve reached the .2, not the 11. I’m working on it! Okay?

John: Okay.

Jack: Individual gifts, you know, you’re allowed to give people so much money each year without actually having it impact your overall 11.2 million. I think it used be 13,000 now it’s up to 15,000 dollars per person. Which means that if any of the listeners out there feel really bad for me, each of them can give me 15,000 dollars and there would be no adverse tax impact on them at all, okay?

Tom: So, was there any change in the contributions you could make to an IRA, a SEP, a Roth, 401 (k), 529 plan or anything like that, Jack?

Jack: No. from what I’ve read, they all are pretty much the same.

Tom: Okay.

Jack: So that hasn’t changed at all. Another thing that hasn’t changed at all is the capital gain rates. They are the same, and for those people that are in the high-income bracket, they had that 3.8% total tax on their passive income, that hasn’t changed either. So if you have what I would call a tax preference items, so like qualified dividends and capital gains, there’s a maximum tax rate of basically 23.8% and so that hasn’t changed at all.

John: Okay, good to know.

Jack: I’m telling you, this is a lot here.

Tom: Yeah. It’s a huge change. As Donald Trump would say, “This is huge.” Right?

Jack: I was on seminar yesterday and I named this the 2018 Jack Cohen full employment act, okay? If you needed a CPA before, you’ll really need one now. The truth is this pretty much assures my job security for the next year or so. That I can’t say, but I think we’re good for ’17 and ’18, okay?

Tom: Okay. So, anything big on the individual side or are we ready to go on to the business?

Jack:  A couple more quick things on the individual side. The penalty for not having health insurance did not go away for ’18. Eventually it’s going to get phased out, but it’s still here for ’17 and it’s still here for ’18, so you have to have health insurance, don’t forget about that.

Tom: Okay. And so, is that changing in 2019 then?

Jack: Correct. It’ll change in ’19. Unless of course we have another president or some other administration takes over and they change it again, but yeah.

Tom: Okay. And of course, John, you and I have podcasts about people that are facing extremely high premiums because of the ACA act. We have an alternative to that and they’re always welcome to call our office and find out how we can help.

John: Yeah, we could point you in the right direction for that podcast or you can look for it on our website. It’s a podcast that we did, I think it was back in October with Jack Cooper at Take Command Health. It’s a great podcast, a lot of great information there.

Jack: I think, let’s see if there’s anything else. I think that pretty much hits the high points. And again if anybody, and I know you’ll tell them at the end, I mean if anybody has any other questions, they’re welcome to contact you or me if we haven’t hit anything. And so, it’s never too late to ask questions. Headed over to the business side real quick.

Tom: Yeah, let’s do it.

John: Go ahead and do that. I know they cut corporate tax rates down quite a bit. Some people have been asking, is it better to be operating as a C company now instead of an S corporation. I know you’ll have something to say about that.

Jack: Well again myself and I think most articles I’ve read, if you were in business, even though they’ve cut the corporate tax rate down to 21%, it’s still a better deal if you have an operating company, meaning a company that generates passive income. You’re still ahead by treating it a Subchapter S.

And the reason is because even though the corporate tax rate is down to 21%, you always have the issue of double taxation. Meaning that how do you get the income out of the corporation? So, if you’re taking out a salary, then you’re paying social security on it. And so, if you add up the highest tax rate for personal and the corporate tax rate at a 21%, it still comes out greater than you would have paid if you had just treated yourself as a Subchapter S.

And so, I don’t really think there’s going to be much impact to people. If they’re already operating as a Subchapter S they should stay this way. I think this really affects big, big, Fortune 500 companies to be honest with you. Where if they had huge taxable earnings and were paying 35%, now it’s down to 21. But I think for small businesses, I think Subchapter S is still the way to go.

Tom: So Jack, this brings up a question that we hear frequently, and it’s not necessarily to do with the tax law changes, but I’ll be talking to someone and they’ll say, “Well, I just leave the money in my S corporation so I don’t have to pay tax on it at the end of the year.” Is that even possible?

Jack: That is a great question. And the answer is totally counter intuitive to what most people would think. And after I explain it to them, sometimes they get it and then a month later they ask me the same question. Because it’s a tough question. But it’s counter intuitive to what our natural instinct would be. On Subchapter S corporations, the individuals who own the company pay income tax on the profit of the company whether you take the money or not. So it’s not relevant. The fact that you take the money out of a sub S, is not the thing that triggers the tax. What triggers the tax is how much money the company made.

So, an easy example would be, if your subchapter S company had a net profit of a 100,000 dollars and you did not take a single penny out, if you looked in the bank account on December 31st, if there was that same 100,000 dollars profit sitting in that bank account, you would still have to pay income tax on the 100,000 dollars even if you didn’t take the money.

And so, people always confuse things and say, “Well, I didn’t take any money out of the company, why do I got to pay tax?” that’s not how subchapter S corporations work.

Tom: And then a C corporation, you could leave the money in there, but then when you do take it out for personal use, you’re going to pay taxes on it twice. Is that correct? Double taxation.

Jack: First of all there’s, we’ve probably never talked about this but they actually have laws that say you can’t continue to accumulate earnings in a corporation forever. There’s a law that says basically you have to take the money out at some point in time. And the question is, going back to your question, what do you call the money you take out? If you take it out as dividend, okay, so dividends are not deductible on C corporate returns. So, say your C Corporation made a 100,000 dollars and you declared 100,000 dollars dividend. Your C Corporation would still have to pay corporate income tax on the 100,000 and you the person who received the dividend, would still have to report the dividend income on your personal return, and pay tax again on a 100,000 dollars.

And so, it’s a –  and again, this goes back to my answer earlier, I think C corporations have their place but for the most part if you have an operating company, S corporations are still the way to go. And that’s how they refer to it as that double taxation. Because you pay tax as a corporate and then you’re also paying tax when you get the money out. And so, that kind of thing.

Tom: That’s a good point, very good answer.

Jack: A couple other big changes real fast, if you will give me two more minutes here?

Tom: Yeah. Go ahead

Jack:  Basically, the rules on net operating losses have changed, where before we’d be able to carry back losses, no can do. Starting ’18 you can only carry them forward. And here’s a huge one. The deduction for travel and entertainment expenses. We used to be able to claim 50% of them. You can’t claim anything anymore. And Tom that means all the times that you take me out to dinner now, you’re not going to be able…

Tom: …can’t right that off anymore, right?

John: Yes. So, what exactly does that mean? Does that mean…

Jack: Not anymore. That’s right! We’re going to have to start going to cheaper places. That’s right. Those high-end places are out. You get no big option, I’m sorry.

John: So the entertainment expenses, no longer allowed. What about meals that you take while you’re travelling? Are those still deductible?

Jack: I believe they’re still allowable, believe it or not. It’s only the entertainment, it’s only when you’re out with clients.

Tom: Okay.

John: Okay, good to know.

Tom: So, in the past, if I understood right, if you take a trip, maybe like this trip I took to Dallas, and I come home, and I ate a meal at the airport before I came home, that would still be part of my travel. Is that still part of my travel expense or is that going to be meals and entertainment?

Jack: You ate by yourself? Allowable. You just can’t eat with anybody else.

Tom: Okay.

John: Okay.

Jack: But you know what though, I want to bring up a point. Remember I mentioned earlier about the employee business expenses are not allowable anymore.

Tom: Yes.

Jack: I’m thinking big companies may have to change their expense reimbursement policies because the truth is say I was a sales person for a company, in some cases it might be better for me if they cut my salary, if they paid my travel expenses as opposed to giving me a higher salary and I have to claim those as employee business expenses. I can’t get the deduction anymore.

Tom: That makes so much sense, yes.

Jack: So, there might be some companies that might have to revisit how they treat their employees as far as travel expenses are concerned.

Tom: Good point, yes.

John: And what about the fringe benefits? You mentioned the employee benefits. Any other fringe benefit changes? Anything else there to contribute?

Jack: No. I’m not aware of anything, no I’m not.

Tom: Okay.

Jack: There’s a new change to the 1031 laws, not that it affected many people, but 1031 exchanges, that’s where you, say you have property and you want to buy other property. The 1031 rules apply only to real property now, no personal property.

And the biggest one, we actually haven’t hit yet. And that has to do with, you have income from a flow through entity, say you have a subchapter S corporation or you have a partnership, depending upon, some calculations you have to go into this, but depending upon your income and depending upon what you do for a living, there’s a new code section, and it says basically you only have to report 80% of your income.

So, to go back to my example, again it’s the facts and circumstances thing but let’s just say you had a 100,000 dollars net income on your subchapter S corporation. Instead of paying tax on 100,000, you only have to pay tax on 80,000. This is a huge, huge change, and there is a lot of strategy that could actually be taken off to try and work into these rules. Again, there are some income limitations, if you’re a certain professional there’s different rules. Definitely though, a lot of opportunity here. A lot.

Tom: That makes my head start spinning, thinking about what we might be able to do with that. That’s exciting.

John: And that’s another reason to have a pass-through entity rather than a C Corp going back to the question that we discussed earlier.

Jack: That’s right. Because the pass-through rules don’t apply to C Corporations, but they do to S corporations.

John: They do to S corporation. That’s a good point. So that’s like a 20% break.

Jack: That’s right. Absolutely.

Tom: So Jack, on the 1031 exchanges, the ‘like’ tool that we use in life insurances is 1035, was there any change in the 1035 exchange?

Jack: I do not know. I’ll have to get back to you but the 1031 is for real property only.

Tom: Okay.

Jack: So, I don’t know.

John: Well, I want to come in here and give our listeners a couple of gifts here. Number one, we want to offer them a newsletter subscription. So, for those of you listening to this, Jack Cohen wrote an article in our newsletter Living Richly that came out in February 2018. Go to our website Jack, Mr. Jack’s name jack.life-benefits.com now go to that link and it’ll take you to a page where you can opt in to read Jack Cohen’s article and we’ll give you 12 issues free, next 12 months the Living Richly newsletter delivered right to your inbox. So that’s our special gift to you.

Tom: And 6 months from now, John, from that first article Jack wrote, he’s going to publish again in our newsletter.

John: Yes, so there’ll be another article from Jack coming in the newsletter later this year that you’ll get to see as well as part of that. And then, Jack Cohen, you also wanted to provide a gift for the people listening in too. What can they do to get a free tax review from your office?

Jack: It’s very simple. All they have to do is contact our office and they just make arrangements to send a copy of their last filed tax returns, and I will personally, I didn’t say have anybody look at this, I will personally review that tax return and give you my opinion as to a) how accurate I think it was. You would be amazed as to how many mistakes we find on tax returns, I know it sounds hard to believe. Just today I found a huge mistake on a corporate return where we’re probably going to get this client back probably 35 or 40,000 dollars from California because they didn’t know how to do California tax returns.

And so, we’ll take a look at the last returns filed, that you filed, to make sure it’s accurate. And also we’ll give you some advice as to maybe things that you can do going forward. You are positively under no obligation to retain us as your CPA. Of course, we’d like that, but it doesn’t have to be. And so, if people are after using TurboTax to do their tax returns and they just want me to look at their tax returns, it’s not a problem, we’ll do it. I’ll do it. And I’ll get back to you either with, we’ll either have a phone call over it or we’ll do some email swapping and we don’t charge anything for it. As simple as that. I’ll make it easy.

Tom: That’s wonderful. So, you with all your experience will take a look at that, and I love it too that you give ideas for what to do going forward. That’s going to be especially valuable in light of this new tax law you’ll be able to give the people taking you up on this review an idea of what they’re looking at going forward.

Jack: Absolutely. I tell people this when I speak with them all the time that the best time to do your planning for next year’s tax return is when you’re finishing the current year’s tax return. And again, it’s easy for me for me to say, but my sense is that a lot of this forward thinking or forward planning never occurs. And more especially, this year with the change in the 2018 tax law, I think it’s even more credible than ever.

The truth is if you don’t do anything, then the results going to be what the result’s going to be. You have to take a more proactive view as to how you plan your tax future, so to speak.

Tom: Well I just want to jump here and say too, I’ve used a lot of different tax preparers in the years that I’ve been an entrepreneur and a doctor. And I’ve never run into anyone like you Jack, that is willing to sit down and talk about the future, and the possibilities that might alter what we’re going to have to owe Uncle Sam on state income taxes. And that’s one of the big reasons we made our switch. And I’ll tell you, we’re not sorry that we did, because I think every year that we’ve been with you, we’ve been able to plan a little bit better, make a little bit more money and keep a lot more of what we’re making.

Jack: Absolutely. And that last point is the critical thing. It’s how much you make during the year is not the number that’s on that tax return. How much you make is how much is left in your pocket at the end. That’s after you take out taxes. And people I think are sometimes fooled, they look at that tax return and they look at their adjusted gross income, and they say, “Wow, I did really, really well this year.”

But the problem is they never looked at page 2 on the return to see how much of it they gave to the Internal Revenue Service. So, it’s how much is left which is the actual true dollar value of what you’ve made.

Tom: And of course, that fits right in with what we do here at Life Benefits because our motto is helping you keep more of what you make. So, take Jack up on this, give his office a call, call our offices if you don’t know how to reach him, we’ll make sure that you get in touch with him.

John: And I’m going to give you the office number for Jack’s office. It’s 702-255-2330 Jack, thank you for joining us today. Is there any final thoughts that you’d like to leave our audience with today?

Jack: Not really, other than the fact that I just think that I guess the more interested people are in the outcome of how their tax return ends up looking like, I think the better the result. It’s kind of like a team effort, just like you and I work together all the time, Tom, I think if the clients, if they work with you, they work with me, there’s going to be a better result. That’s all I can tell you.

Tom: I agree. And I’m so glad that you were able to join us today because I know that everybody listening could benefit by having a conversation personally with you about their taxes.

Jack: That’s right.

John: Once again, yes thank you again and to all of our listeners, we’ll be back next week here on Wealth Talks, where we’ll talk about solutions, money and other things that create wealth in your life. Have a great week.