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Please note by using any of the links provided for your convenience you will be leaving Fidelis Wealth Advisors website. The hyperlinks are to websites and servers maintained by third parties. We do not control, evaluate, endorse or guarantee content found in those sites. Your use of such sites is at your own risk.

It’s Tax Season… again. Learn how the NEW Tax Cuts and Jobs Act Will Affect You

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It’s the season we all love again… tax season. In addition, the Tax Cuts and Jobs Act goes into effect this year, and you may have already seen some changes as you prepare your 2018 tax return. While some of these changes are permanent, many are scheduled to sunset at the end of 2025 (reverting to the 2017 tax code). 

Below is an overview of how the new Tax Cuts and Jobs Act—arguably the largest overhaul of the U.S. tax code since the Ronald Reagan era—will affect you.

FIRST, A REMINDER 

***Make sure to upload your tax documents to your eWealth vault (especially your current, 2018 return)! This helps us integrate them into your financial plan and better plan for your future.***

 

Colorado Specific Tax Cut Update

If you claim the standard deduction on your federal taxes and do not itemize, you can take a deduction on your Colorado income tax return for your charitable contributions that exceed $500 for that tax year. This may become more common as many taxpayers will be taking the standard deduction. If you are charitably inclined, don’t miss this tax savings tip! Please speak with your CPA if this could apply to you.

 

Positive Changes

  • Standard deductions nearly double to $24,000 for couples, $12,000 for singles, and $18,000 for household heads.
  • Child tax credit doubles to $2,000 for each dependent under age 17. The income phase-out limit starts at $200,000 for singles and $400,000 for married filing jointly, thus the credit will be available to far more families.
  • The phase-out of itemized deductions for Upper-income individuals has been eliminated under the new law.
  • The new law includes a change that allows the use of 529 college savings plan for tuition for elementary and secondary education (up to a $10,000 limit per student per year, tax free). However, the state of Colorado does not consider withdrawals for Elementary and Secondary education to be qualified withdrawals, and will charge the 10% penalty on these distributions. Each state is different, so we recommend you speak to your accountant before making any decisions regarding your 529 distributions.
  • The individual lifetime estate (inheritance) and gift tax exemption doubles to almost $11 million, which means fewer estates will be subject to this tax (at least until 2025).
  • The law keeps seven tax brackets, but with different rates and break points. For example, not only is the top individual rate lowered from 39.6% to 37%, but that rate kicks in at a higher income level. And, note that whatever new bracket you fall into, more of your taxable income will be hit with lower rates than before.
Rate Single Married Filing Jointly Head of Household
10% $0-$9,524 $0-$19,049 $0-$13,599
12% $9,525-$38,699 $19,050-$77,399 $13,600-$51,799
22% $38,700-$82,499 $77,400-$164,999 $51,800-$82,499
24% $82,500-$156,999 $165,000-$314,999 $82,500-$157,499
32% $157,000-$199,999 $315,000-$399,999 $157,500-$199,999
35% $200,000-$499,999 $400,000-$599,999 $200,000-$499,999
37% Over $500,000 $600,000 and up $500,000 and up

 

Negative Changes

  • Home mortgage interest can only be deducted on up to $750,000 on NEW (new mortgage after December 15, 2017) primary and secondary residences (down from $1M previously).* The $1M limit may still apply if you refinance later if certain conditions apply.
  • Residential property taxes and income/sales taxes are limited to deductions up to a $10,000 cap (it was unlimited before).
  • The deduction for interest paid on certain types of home equity line of credit (HELOC) is suspended. If the HELOC was used for original indebtedness or for home improvements, then interest deduction is still allowed.
  • Write offs for all miscellaneous deductions (with a 2% of Adjusted Gross Income (AGI) threshold) were eliminated. Employee business expenses, brokerage fees, and tax prep costs to name a few.
  • Personal exemptions for individual tax filers and their dependents are repealed. 
  • Under the new tax bill, the tax deduction for alimony payments post-2018 is eliminated, and recipients no longer need to treat alimony received as taxable income. 
  • Elimination of the Roth Conversions “Do- Overs” – this mean you cannot change your mind and unwind a Roth conversion via a recharacterization. Previous to the new law, recharacterization was a nice planning strategy. 

 

Business Impacts

  • Business tax rate is reduced to 21% for C-Corporations. S-Corp, LLC’s, and sole proprietors may be eligible for a new 20% qualified business income deduction.
  • There is a new incentive in the form of lower taxes for businesses that repatriate assets from foreign countries back to the USA.
  • Section 179 (accelerated depreciation) is almost doubled, from the 2017 amount of $510,000 to $1,000,000 for 2018. Also, enhancements were made to Bonus depreciation.
  • Elimination of the deduction for business entertainment expenses. Also, all meal expenses are now limited to a 50% deduction (previously some business meal expense could be written off 100%).
  • The corporate Alternative Minimum Tax (AMT) is eliminated.

Overall, the law should mean a lower tax bill and simpler filing for millions of Americans. How much you can expect to save depends on your particular circumstances. We recommend you consult with your tax advisor to learn how you are personally affected by these tax cuts and how to take advantage of planning opportunities that will affect your financial planning. 

Nancy Tagovailoa

PROFESSIONAL

Nancy has worked in the financial services industry for the past 25 years.  She is passionate about providing an unforgettable customer experience throughout onboarding, account opening and throughout the relationship.  Nancy works hard to make the client experience as easy and efficient as possible.

 

PERSONAL

Nancy was born in Norfolk, Nebraska, but has been in Colorado since she was 6 months old so considers herself a native.   In her free time, she enjoys gardening, painting, and spending time with her family and grandchildren.  Nancy lives in Centennial, Colorado with her husband, Lima.

Karley Winder

PROFESSIONAL
Karley Winder recently joined Fidelis Wealth Advisors as an intern. She is an undergraduate at Arapahoe Community College and is soon transferring to University of Colorado Denver business school to earn her Bachelor’s in Financial Management. Karley also has several years of entrepreneurial experience from starting her own local businesses. She has sincere interest in the field of finance and is eager to gain experience.

PERSONAL

Karley is a Colorado native and has lived in Castle Rock since she was a young girl. She enjoys horseback riding, Pilates, and mountain biking in her free time.

Rilee Erickson

PROFESSIONAL
Rilee comes to Fidelis Wealth Advisors with a background in Financial Services, having previous experience in property and casualty insurance, as well as life insurance. Rilee graduated from the University of Wyoming with a Bachelor of Science in Agribusiness and Horticulture Sciences. Rilee’s passion is helping people protect their family and their future.

 

PERSONAL
Rilee is a Wyoming native and resides in Big Piney, Wyoming with her husband and two boys. Rilee enjoys spending a lot of time outdoors and exploring the beautiful and rugged Wyoming Range.

Skye Fineran

PROFESSIONAL
Skye comes to Fidelis Wealth Advisors as an Administrative Assistant in 2021 and is a recent graduate from West Texas A&M University. There she earned a Bachelor of Business Administration in Management. Skye also completed Amarillo College’s paralegal certification program. Skye enjoys the rewarding feeling of helping clients to achieve their financial goals and looks forward to making a difference at Fidelis Wealth Advisors.

 

PERSONAL
Skye grew up in Tecumseh, Michigan and currently resides in Castle Rock, Colorado with her family. Skye loves art history, playing golf, and spending time with her family and friends.

RIA Innovations

Fidelis Wealth Advisors has a strategic partnership with RIA Innovations, a Division of NWAM, LLC. RIA Innovations provides administrative support services for registered investment advisors nationwide. This service is under the direction of Nelly Mubashi, the Chief Operating Officer.

 

NWAM, LLC, dba Northwest Asset Management & RIA Innovations is an SEC registered investment adviser. NWAM, LLC dba Northwest Asset Management & RIA Innovations and Fidelis Wealth Advisors, LLC are not affiliated companies.

Gabriel Jones

PROFESSIONAL
Gabe started with Fidelis Wealth Advisors as an Investment Research Assistant in 2018, and has an intense passion for investment research.


PERSONAL
Gabe is currently in college to obtain his Bachelors in Finance, and enjoys spending time outside of work hiking and reading.

Dawn Folmer

PROFESSIONAL
Dawn Folmer comes to Fidelis Wealth Advisors with a background in the finance industry, having previous experience with a registered investment advisory firm in Denver. Dawn is a recent graduate of Colorado State University Global, earning a Bachelor of Science degree in Organizational Leadership. As a skilled financial planning assistant, she enjoys the rewarding feeling of helping people reach their financial dreams and retirement goals.

 

PERSONAL
Dawn is a Colorado native and resides in Castle Rock with her family, where they enjoy being adventurous and active in the outdoors. Additionally, she is passionate about travel, food, and playing golf.

Jeff Bullock

PROFESSIONAL
Jeff joined Fidelis Wealth Advisors after spending nearly 10 years working at J.P. Morgan Wealth Management in their Private Bank. As Chief Investment Officer, he is responsible for the overall investment strategy, portfolio construction, and market insights for clients.

 

Jeff held various roles during his decade at J.P. Morgan, including working as an investment specialist on their trading desk, where he was responsible for managing and trading investment portfolios for High Net-Worth families and non-profit foundations throughout the Rocky Mountain region. Jeff helped co-manage over $4.0 billion of investment assets and gained broad experience in portfolio construction and investment strategy, as well as in-depth knowledge in a variety of asset classes and markets. In recent years, Jeff was part of the leadership team that trained new advisors and established an expansion office in Utah.

 

Jeff loves helping people with their money-related questions and management. Very simply, his goal is to help others continuously improve their financial situation, regardless of the current condition. His framework centers around sound advice and proper decision-making by engaging in honest discussion and taking a long-term approach.

 

PERSONAL
Jeff holds a B.S. in Accounting from Brigham Young University. He is a native to Colorado and loves playing golf and being outdoors. He lives in Highlands Ranch with his wife Nicole, and their two children.

Lorie C. Jones, MBA, CFP®

PROFESSIONAL
Lorie began working in financial services in 2013 with a Registered Investment Advisory firm in South Denver. She started as a paraplanner and provided technology and operations support before transitioning to a Client Services Manager role with Empower Retirement. There she managed a book of 300+ Core Market plans before joining Fidelis Wealth Advisors.


Lorie enjoys the challenges presented by financial planning and is rewarded by helping clients thoroughly understand the complexities of finance so they can be better informed and in control of their planning.


In addition to securities licenses, she holds health, life, accident, property, and casualty insurance licenses in the state of Colorado and completed her CERTIFIED FINANCIAL PLANNER™ designation from the CFP® Board of Standards. She is also a member of the Financial Planning Association (FPA).


PERSONAL
Lorie graduated from Colorado State University with an MBA. She enjoys running and has participated in several marathons and half-marathons around the country. She also enjoys hiking with her family, traveling with her husband David and their five children, and working with the cub scout and boy scout programs, including volunteering with the district.