FILE - Illinois, home for sale, home sales, property, for sale, winter

In this Wednesday, Feb. 27, 2013 photo, a for sale sign hangs outside a home in Glenview, Illinois.

With the end of the year here, a wealth manager said it’s a good time for Illinois residents to evaluate what they can do to maintain more of their wealth.

John Bever with Phase 3 Advisors, a wealth management group, suggests looking at charitable donations. He said talk to a professional about donor advised funds and bunching.

In Illinois, if your wealth involves real estate, Bever suggests looking to clarify what the real estate is for.

“If it’s personal property then they will be limited by the $10,000 cap on local taxes as a deduction on the federal tax return,” Bever said. “But if they are using that property for investment purposes, then they actually can be reporting that as investment property.”

In that case, the property taxes would be fully deductible as a business deduction, he said. Illinois is home to the second highest property taxes in the country.

There’s also a provision allowing vacation property to be categorized as investment property, something Bever said should be discussed with your tax professional.

There’s something else Bever said to keep an eye on heading into the new year and that’s the proposed progressive income tax constitutional amendment. The question is on Illinois' ballot in November 2020. Voters are. being asked whether to change the state constitution's flat tax to one with higher rates for higher earners.

“We’re very concerned about the graduated income tax because what it does is it creates an additional incentive for the more highly compensated to leave the state and that’s not what we want to do in Illinois,” Bever said. “We want to be attracting those residents, not repelling those residents, and there still is the flight out of Illinois.”

Illinois has lost population every year for the past five years.

Bever said there is one bright spot for Illinois: the state doesn’t tax retirement income.

As for your investments with the possibility of a market sell-off over the next year, he recommends being prepared to make that a buying opportunity.

Staff Reporter

Greg Bishop reports on Illinois government and other statewide issues for The Center Square. Bishop has years of award-winning broadcast experience, and previously hosted “Bishop On Air,” a morning-drive current events talk show.