The current value of the residence is $550,000. The balance of the 30-year mortgage at 5.5%...

 
 
 
 

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The current value of the residence is $550,000. The balance of the 30-year mortgage at 5.5% is $260,514. The land value is $150,000. The monthly payment is $1,703.37 and they have owned it for 8 years. They will not qualify for refinancing until Mr. Young has been employed for 12 months. Statement of Income and Expenses Expected (Approximate) For This Year (2020) Cash Inflows Totals Alan's Salary Trust Income Cash Outflows Savings 401(k) Plan Statement of Income and Expenses Alan and Angel Young Taxes Social Security Taxes Federal Withholding State Withholding Property Tax Residence Debt Payments (Principal & Interest) Principal Residence (P & I) Auto Loan Credit Cards Cable Clothing Auto Maintenance/Gas - Both Cars Food Insurance Payments HO Insurance Residence Health Insurance Premium Automobile Insurance Premiums Total Cash Inflows Total Cash Outflows Net Discretionary Cash Flows Total Savings Living Expenses Tuition to Little Darling School for the two children Utilities for Residence Entertainment/Vacation Total Taxes Total Debt Payments Total Living Expenses Total Insurance Payments $93,000 $30,000 $18,000 $7,115 $10,384 $3,715 $3,000 $20,440 $0 $0 $15,000 $2,400 $7,500 $1,200 $2,000 $3,000 $9,600 $2,400 $12,000 $1,800 $123,000 $18,000 $24,214 $20,440 $40,700 $16,200 $119,554 $3,446 Statement of Financial Position (Beginning of Year) Current Assets Cash & Cash Equivalents CP Banking Account Total Current Assets Investment Assets H Portfolio (Inherited) W Brokerage Account CP 401(k) Plan Total Investment Assets Assets ¹/4 Personal Use Assets CP Principal Residence³ W Automobile #1 CP Automobile #2 CP Furniture and Household Total Personal Use Assets Total Assets Statement of Financial Position Alan and Angel Young Balance Sheet as of 1/1/2020 $28,000 $200,000 $67,000 $32,000 $550,000 $40,000 $25,000 $150,000 $28,000 $299,000 $765,000 $1,092,000 Liabilities and Net Worth Current Liabilities² CP Principal Residence Mortgage Total Current Liabilities Long-Term Liabilities CP Principal Residence Mortgage Total Long-Term Liabilities Total Liabilities Total Net Worth Total Liabilities & Net Worth 1. Assets are stated at fair market value. 2. Liabilities are stated at principal only as of January 1, 2020 before January payments. 3. The land is valued at $150,000. 4. The trust assets are not included on the balance sheet. $6,269 $254,245 $260,514 $260,514 $831,486 $1,092,000 2020 Tax Analysis - MFJ with 2 Children Income Income from Employment Income from Trust 401(k) Plan Contribution Itemized Deductions Mortgage Interest Property Taxes State Income Tax Charitable Giving Taxable Income Tax Liability* Credits (child credit) Withholding Total Income Total Itemized Deductions Tax Liability* Refund or (Due) LA LA $ $ $ $ The current value of the residence is $550,000. The balance of the 30-year mortgage at 5.5% is $260,514. The land value is $150,000. The monthly payment is $1,703.37 and they have owned it for 8 years. They will not qualify for refinancing until Mr. Young has been employed for 12 months. Statement of Income and Expenses Expected (Approximate) For This Year (2020) Cash Inflows Totals Alan's Salary Trust Income Cash Outflows Savings 401(k) Plan Statement of Income and Expenses Alan and Angel Young Taxes Social Security Taxes Federal Withholding State Withholding Property Tax Residence Debt Payments (Principal & Interest) Principal Residence (P & I) Auto Loan Credit Cards Cable Clothing Auto Maintenance/Gas - Both Cars Food Insurance Payments HO Insurance Residence Health Insurance Premium Automobile Insurance Premiums Total Cash Inflows Total Cash Outflows Net Discretionary Cash Flows Total Savings Living Expenses Tuition to Little Darling School for the two children Utilities for Residence Entertainment/Vacation Total Taxes Total Debt Payments Total Living Expenses Total Insurance Payments $93,000 $30,000 $18,000 $7,115 $10,384 $3,715 $3,000 $20,440 $0 $0 $15,000 $2,400 $7,500 $1,200 $2,000 $3,000 $9,600 $2,400 $12,000 $1,800 $123,000 $18,000 $24,214 $20,440 $40,700 $16,200 $119,554 $3,446 Statement of Financial Position (Beginning of Year) Current Assets Cash & Cash Equivalents CP Banking Account Total Current Assets Investment Assets H Portfolio (Inherited) W Brokerage Account CP 401(k) Plan Total Investment Assets Assets ¹/4 Personal Use Assets CP Principal Residence³ W Automobile #1 CP Automobile #2 CP Furniture and Household Total Personal Use Assets Total Assets Statement of Financial Position Alan and Angel Young Balance Sheet as of 1/1/2020 $28,000 $200,000 $67,000 $32,000 $550,000 $40,000 $25,000 $150,000 $28,000 $299,000 $765,000 $1,092,000 Liabilities and Net Worth Current Liabilities² CP Principal Residence Mortgage Total Current Liabilities Long-Term Liabilities CP Principal Residence Mortgage Total Long-Term Liabilities Total Liabilities Total Net Worth Total Liabilities & Net Worth 1. Assets are stated at fair market value. 2. Liabilities are stated at principal only as of January 1, 2020 before January payments. 3. The land is valued at $150,000. 4. The trust assets are not included on the balance sheet. $6,269 $254,245 $260,514 $260,514 $831,486 $1,092,000 2020 Tax Analysis - MFJ with 2 Children Income Income from Employment Income from Trust 401(k) Plan Contribution Itemized Deductions Mortgage Interest Property Taxes State Income Tax Charitable Giving Taxable Income Tax Liability* Credits (child credit) Withholding Total Income Total Itemized Deductions Tax Liability* Refund or (Due) LA LA $ $ $ $

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