For clients with young children in their household a focus on education planning, estate planning, and income shifting tools can be implemented.
Understand all of the various income sources is essential to identifying planning opportunities and strategies. Identify whether the income is from earned wages, dividends, interest earned, and self-employment and so on. Ensure that the client is contributing the maximum into their company’s retirement plan. A great question to ask if there are any retirement plans from former employers that can be rolled over and consolidated.
Schedule A, Itemized Deductions
A great starting point under this category would to ask about long-term health care and health care insurance coverage. You may want to start a discussion to talk about issues such as Medicare rules, health saving accounts, corporate health plans, and the Affordable Care Act.
Under the mortgage interest expenses area a discussion could lead to planning opportunities and refinancing opportunities to lower the outflow on the mortgage expenses.
The charitable contribution amounts may identify insight on thoughts and potential legacy plans for gifting funds.
Schedule B, Interest and Ordinary Dividends
Items listed on the interest area of the form may start a conversation regarding the sources for the interest, the types of accounts their funds are in and the client’s investment tolerance.
The items listed in the dividend area of the form may trigger a discussion on the types of funds and investments that are paying out the dividends.
Schedule C, Profit of Loss from Business
The schedule will identify the health of the business activity. A great strategy would be to discuss retirement planning, income shifting opportunities and succession planning would be in order here.
Schedule D, Capital Gains and Losses
The main focus of this schedule would be the short or long term loss carry overs for prior years. This would give opportunity to balance the portfolio and sell some of the profit makers.
Schedule E, Supplement Income and Loss
Numerous questions come from the review of this schedule. Items listed on Schedule E can be from a variety of different sources. Rental property income and losses will be listed on this form
In addition, if the client is a partner or a shareholder of an S Corporation or an LLC entries will be listed on this schedule. Corporate retirement plans would be implemented from this schedule.