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5258897577Monthly Newsletter:Volume 25/4/1800Monthly Newsletter:Volume 25/4/18Our Philosophy is that businesses have two purposes. First, to serve the community, clients and the greater good. Second, to grow, to expand into places that are underserved, so that the playing field can be leveled. IHN is moving forward with those two purposes in mind. In this iteration we will go into more detail on the new Tax Laws coming into effect so that our clients can see their options to recapture the tax savings they might have lost as a result of tax changes for 2018. Serving our current clients is still a priority here at IHN Management. In the Spirit of Growth, we have expanded our services into the Sports Representation and Business Development areas AND we have expanded as a staff. You’ll notice on our website we have added Nelson Jones, Carl Watkins, Dusty Gwinn, and Eric Murphy! At the firm we want to help beyond financial services and we are ecstatic about being in the positon to expand our staff and move in new directions in order to better serve the community we live in. Being a full service firm is of upmost importance to us here at IHN so please feel free to reach out and we will do our best to help you with your financial and professional endeavors.Best,Kenneth JonesNew Tax Law Information set to take action in 2019…Now that the excitement for the new tax laws has faded we can take a look at a stark reality; a number of deductions that benefited home-owners like property tax, mortgage interest, and state and local taxes were either stripped out of the new tax laws or significantly reduced. The impact of these revisions could mean that folks in the 18-32% tax bracket will see a significant increase in their real tax cost. The standard deductions doubles to $12,000 for single taxpayers and $24,000 for married couples; while this may mean fewer people will need to itemize the following example will explain how the net effect will be higher taxes; especially if you tithe to your church, have significant medical cost, live in a state with high sales tax, or have higher property tax. For example, the average price for a home in the US is almost $200,000 however the average price for a home in Morgantown, WV is $250,000 which makes the average mortgage payment in the WV approximately $2,000/month including taxes and escrow. Because the first ten years of an average house payment is primarily interest, escrow, and taxes, one previously would have been able to deduct roughly $24,000 of housing cost and $6,000 as a standard deduction making the total annual deduction for housing $30,000. So you can begin to see that the increase in the standard deduction is nullified by the elimination of other deductions. This is not the case anymore as the sum benefit of the new $24,000 is zero, before we even get to charitable donation deductions, state and local taxes, medical costs (deductible), property taxes other than real estate, union and professional dues, interest on home- equity lines of credit, unreimbursed employee expenses, moving expenses, and health care costs. Therefore, the net is an increase in tax liability particularly since expenses like job related expenses and interest on student loans are subtracted from your adjusted gross income (AGI) on Page One of the 1040 and you would have still received the standard deduction on Page Two however that is not the case anymore. We lose the compounding effect of moving expenses and unreimbursed employee expenses, so how do we recapture the deductions lost from these revisions??Here’s How- the last item added, at the request of Senator Bob Corker of Tennessee, to get his vote, was a tax deduction on Pass Through Income. Pass Through Income is income generated through your home based business. This is a new service that we offer at IHN, we will help you set up a business based on an interest or expertise that you have and in doing so help your recapture deductions you lost under the new tax laws. You gain a 20% deduction on QBI (Qualified Business Expense) and home office expenses that replace the advantages lost under the new tax law. You are allowed to deduct because under the home office expense, you are allowed to go back and recapture portions of real estate, union and professional dues, interest on home- equity lines of credit, unreimbursed employee expenses, moving expenses, and health care costs that was previously lost. Call us or visit for the details and see how we can help you reduce tax liability doing something you enjoy! Staff Expansion…Meet the Guys!Nelson JonesNelson specializes in youth development. He manages the C- League Basketball program for Mon- County and will help bring tournaments to the region to give our developing athletes exposure and premier competition. We look forward to adding Nelson’s expertise in our new Sports Division as he helps with youth player development of skills. Carl WatkinsCarl currently runs Youth Character Basketball (with Nelson); the goal of their non-profit is to provide athletic outlets for young people and support for families through various activities. YCB has been operating in Mon-County for several years. Carl will be a part of our Sport division as he will help with player recruitment at the next level )International and WNBA representation)Dusty GwiinDusty is a WV native who is an agent for WNBA, NFL, and FIBA. He will be a part of our Representation branch of our new Sport division as he works out contracts and specializes in the practice of Sport and Entertainment Law. Dusty has years of experience that we will rely on as we complete our holistic approach to preparing young athletes for managing their financial, entrepreneur, and professional lives. Eric MurphyEric Founded I-Father to help young men navigate the complex landscape of fatherhood through mentorship and various engaging activities. We look forward to adding Eric to our professional development division. Stay tuned for more news as we continue to grow and serve you and the community in the best way possible! ................
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