As an accountant, it has never been a more important time to model out scenarios for taxpayers of tax options this year versus next year.
First things first, the effect of the upcoming tax season will not be significant as almost all of the provisions are effective in 2018.
That being said, here is a checklist of things taxpayers should consider doing by year's end:
-Prepay 2017 state income taxes.
-Accelerate any of your children's unearned income into 2017 (rates go up in 2018).
-Push business income to 2018 (rates go down in 2018, plus deduction).
-Buy & place in service an electric car (tax credit expires at end of 2017).
-Recognize any possible business losses (they will be limited in 2018).
-Prepay investment expenses in 2017 (nondeductible in 2018).
-Pay any moving expenses related to a job in 2017 (the deduction is eliminated in 2018).
-Sell any business processes or patents before the end of the year (this will be treated as ordinary income in 2018, & is capital gains in 2017).
-Wait to buy a business vehicle until 2018 (depreciation on luxury autos goes up substantially in 2018).
Additionally, here is a link to a slideshow list that explains 13 other changes that will result from the new tax bill:
Now, more than ever, it is going to be vitally important to seek sound professional tax advice to help you navigate your way through all of these new complex changes.
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We would also love for you to consider having our firm prepare your 2017 tax return. To RSVP for this upcoming tax season, simply click “Going” on this Facebook event: