Business Times of Edmond, Oklahoma January 2020 - Page 25

are paying. Still a nice return, but in the long run it gets compounded into reducing your wealth significantly. Family wealth can be enhanced by devoting attention to the after-tax return. 7. Considering Opportunity Zone investments — Opportunity Zones were established as a part of the 2017 Tax Cuts and Jobs Act. The Zones consist of zip codes that have experienced overall declining income of residents. Simply put, if investors reinvest their capital gain proceeds in the Opportunity Zone and leave it for 10 years, then the investor can avoid capital gain tax on that gain. 8. Paying attention to holding period — Selling capital assets held less than one year will result in a short-term gain taxed at ordinary income rates. In some cases, those rates are as high as 40.8% when the recent Medicare net investment tax of 3.8% is considered. Long-term gains are taxed at 23.8%, in comparison. Tax-managed strategies can avoid short-term gains and limit realizing long-term gains. 9. Harvesting tax losses and selecting tax lots correctly — Values of securities may fluctuate at certain times of the year. Selling a position that drops below its cost basis can produce a loss that can offset other gains or can be carried over to another year where a gain is anticipated. Also, when a partial sale of a position is made, the tax impact of selling shares purchased at different times should be evaluated. The goal of this strategy would be to reduce immediate taxes and improve the after-tax return. 10. Strategically utilizing the standard deduction with their charitable contributions — Clients required to take required minimum distributions (RMDs) with charitable motivations can avail themselves to qualified charitable distributions (QCDs) by sending all or a part of their RMD directly to a qualifying charity. Under the 2017 Tax Cuts and Jobs Act, the standard deduction was doubled for 2018. PHOTOS PROVIDED | EDMOND AREA CHAMBER OF COMMERCE For many taxpayers this meant there was no longer a need to try and itemize deductions. For those that are 70 1/2 or older taking advantage of the QCD has a meaningful effect when paired with the increased standard deduction. These are just some of the long-term wealth-building tax strategies that I have seen work over the years. I’m always looking for new ones. Let me know if I missed one of your favorites! JIM DENTON is the managing partner of Arledge & Associates, PC where he is responsible for providing leadership to the CPA and Wealth Management firm, Summit Capital Advisors, LLC. Mr. Denton empowers his clients, so they may live their best life. He may be reached via email at jim@jmacpas.com. Securities offered through Avantax Investment Services. Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services. Insurance services offered through an Avantax affiliated insurance agency. GROWING EDMOND Ribbon Cuttings Continued CHAMBER HELPS CUT RIBBON ON HIGHGARDEN ROADWAY IMPROVEMENT TO ODOR STREET CELEBRATED Homes By Taber recently held a ribbon cutting with the Edmond Area Chamber of Commerce to celebrate the grand opening of their new neighborhood community, Highgarden. Located in east Edmond, Highgarden is a gorgeous, tree-filled community that features quarter acre homesites and a large pond. The developer of this neighborhood will also be installing a pool and playground for residents to enjoy within walking distance of their homes. This tranquil community is just minutes from Edmond and even closer to entertainment, food and fun on Covell Road. The schools are part of the Edmond Public School district, which is well known for providing a top-tier education. Edmond recently earned an A+ rating on niche.com for best places to live in the United States. Each home also includes a storm shelter in the garage for additional protection in Oklahoma. For more information, visit www.homesbytaber.com. A ribbon cutting and grand opening was recently held in Arcadia in honor of completed roadway improvements on Odor Street. County Commissioner Kevin Calvey said the road crew always does great work maintaining the district’s infrastructure, and he was very pleased by the community support for the crew and the town of Arcadia. He said he wish to thank Mayor James Woodard, Trustee Tommie Noble Jr, as well as Janetta Chappelle and Felicia Bennett from the town’s administration for their attendance and gratitude. Rep. Lewis Moore also joined in the celebration, in addition to Bryson Panas from Sen. Inhofe’s office, and Brooks Wright representing Sen. Lankford. The Edmond Chamber of Commerce also brought a group of ambassadors to the ribbon cutting. January 2020 | The Business Times 25