On today’s episode of The Financial Commute, host Chris Galeski welcomes Wealth Advisor Sarah Ellis to discuss taxes. 

If you’re a California resident, listen up! Due to the heavy California rain in January, there is tax relief available to those affected by storms, and 41 counties are eligible to extend their tax deadline from April 18 to May 15 without filing an extension. 

Chris and Sarah also discuss the taxes that come with alternative investments and limited partnerships. These tax-reporting documents can be delayed past April, causing investors to have to file an extension. Chris says although this can be tedious, these investments may create more diversified and resilient portfolios with better cash flow.

Furthermore, Sarah says CPAs usually think of tax-advantaged strategies in the present lens, aiming to minimize taxes now by investing in things like municipal bonds; however, it is important to consider the possibility that some other investments with “high” taxes may have an even more beneficial net after-tax return. 

Finally, Chris reminds listeners that if they fail to max out their contributions to retirement or health savings accounts by the end of the previous year, they still have until the tax filing deadline to make a contribution for the prior year. This is a great way to reduce your income tax. 

Disclosures:

Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and do not represent the views and opinions held by Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.