The New Tax System for 2018 with Nathan Burt
Nathan’s dad, Ron Burt, who I’ve known for years, started the business a long time ago and operated out of a quaint, little house in downtown Kennewick. Nathan never thought he’d be back in our small community working in a small business, but that is where his entrepreneurial spirit led him. Now, he has taken over the business from dad, spruced up their logo, that cute little house too, and added employees. And, he says, that suits him just fine.
In our conversation today we touch on several topics.
We look at some key things to think about for the coming year in response to the changes in tax law for 2018, like bunching, and how you might maximize deductions.
Then we look at some really interesting ways for family’s with businesses or self-employed folks, in particular, to reduce taxable income, saving on taxes which then frees up money to help pay for college. We call these “tax scholarships”.
He brings up a very interesting point about scholarships and grants being used to actually increase the student income in order to maximize student’s eligibility for the American opportunity tax credit (AOTC).
We shift gears a bit to discuss the pros and cons of using 529 plans to save for college. He gives us his perspective and when he thinks it makes the most sense.
We explain what a base year is and what you might consider doing with your income.
We finish with his key piece of tax advice to our listeners, something that we can all do.
- Burt Tax and Accounting, Inc.
- Total Assets in 529 plans June 2018
- More families are using 529 plans in 2018