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Tax Planning Tips

Guilmartin, Dipiro & Sokolowski, LLC

2017 Year-end Individual Tax Planning Tips Considering Potential Tax Reform

Tax reform is coming in 2018. Although the specifics are uncertain, one thing is for sure, there are likely to be some major changes to allowable itemized deductions starting in 2018.  

  • State income tax deduction elimination
  • Cap on property tax deduction
  • Limitation on mortgage interest deduction
  • Miscellaneous Itemized deduction elimination
  • Elimination of personal exemptions

In lieu of certain deductions as described above, taxpayers will receive a higher standard deduction based on their filing status, or the higher of otherwise still allowable itemized deductions.

We believe that time-tested tax planning strategies that accelerate deductions and defer taxable income still hold true for most taxpayers.

Actions to consider before December 31, 2017 in anticipation of 2018 Tax Changes

  • Pay outstanding medical bills
  • Pay any state past-due income taxes owed and state estimates normally due 1/15/18
  • Pay real estate taxes typically paid in early 2018
  • Pay any personal property taxes owed
  • Pay mortgage interest that is for December - This is typically the payment you make in January
  • Pay accounting fees and investment management fees and expenses that are owed

While the Proposed Tax Plans aim to reduce individual tax rates, modify or eliminate a variety of itemized deductions and repeal the Alternative Minimum Tax (AMT), there remain many uncertainties.

We will keep you informed as the New Law comes to fruition.
 

This information is intended as general guidance only.  Your individual tax situation is unique and may vary depending on your specific facts and circumstances.  Please contact your GDS tax professional for specific guidance and how these items may impact you.