Tax Bill DO WHAT YOU CAN NOW

MOST OF THE TAX BILL CHANGES DON’T TAKE PLACE UNTIL 2018 HERE ARE A FEW THINGS YOU CAN DO because ordi­nary income tax rates should be low­er next year and many expens­es will either no longer be deductible or will be less valu­able in light of high­er stan­dard deduc­tions in 2018. So may want to try a few of these 

 

1. Delay year-end bonus­es or oth­er com­pen­sa­tion. Many employ­ees can­not con­trol the tim­ing of com­pen­sa­tion, but it nev­er hurts to ask. Where shift­ing income from 2017 to 2018 is pos­si­ble, low­er mar­gin­al tax rates should apply in 2018.
2. Max­i­mize retire­ment defer­rals. Be sure to ful­ly fund your 401(k) and/or IRA to fur­ther reduce gross income for 2017. We’ll dis­cuss dur­ing tax sea­son ful­ly fund­ing 2017 SEPs and oth­er retire­ment accounts that can be fund­ed up to April 15.
3. Busi­ness own­ers and con­sul­tants should delay billing. It isn’t prop­er to sim­ply delay deposit­ing checks received before year-end, but you gen­er­al­ly won’t be paid for amounts you haven’t billed. Shift that mid- to late-Decem­ber billing out until Jan­u­ary 1.
4. Pre­pay state income tax. This deduc­tion will be elim­i­nat­ed begin­ning in 2018, so pay the fourth quar­ter esti­mate that is dat­ed Jan­u­ary 2018 by Decem­ber 31, 2017. This strat­e­gy, how­ev­er, requires that you know your sta­tus regard­ing alter­na­tive min­i­mum tax (AMT). If you will be sub­ject to AMT in 2017, it is like­ly that pre­pay­ing your state tax­es will not reduce your 2017 tax­es. In that case, with no ben­e­fit in either year, it makes bet­ter finan­cial sense to make the pay­ment lat­er.
5. Pre­pay prop­er­ty tax­es. The deduc­tion for prop­er­ty tax­es is like­ly to be lim­it­ed to $10,000 begin­ning in 2018. To the extent that you already have an assess­ment that isn’t due until after the first of next year, pay it by Decem­ber 31. For tax­pay­ers with high prop­er­ty tax bills and oth­er large deduc­tions such as mort­gage inter­est and con­tri­bu­tions, accel­er­at­ing the 2018 prop­er­ty tax pay­ment into 2017 may save a deduc­tion due to dis­ap­pear next year. Mid-range tax­pay­ers may need a pro­jec­tion to see if this makes sense. And here again, the strat­e­gy won’t work for those in AMT in 2017.

TASHA WANTS YOU TO CHECK THIS OUT~  DEADLINES APPROACHING

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