Did You Know? It's Time To Organize For Your Taxes Now?
If you act by New Year’s Eve, you may be able to reduce your tax bill for 2017.
On January 1st, 2018 a new tax code goes into effect giving Americans, "an Incredible Christmas Gift," said President Trump. Since the new tax code doesn't go into effect until January 1st, consider these for possible last minute tax savings. Some deductions may be ending in 2017 or may be limited/capped for 2018.
Here's some things to consider about 2017 tax deductions:
- Donate to charity before January 1st, 2018. If you itemize, you may be able to benefit from your charitable giving. Note, that the 2018 standard deduction is changing and you may not be able to see any tax savings from your charitable contributions, but for 2017... you might.
- Make business expenses that are deductible on your taxes, such as membership dues. If you purchase normally deductible supplies for your business, now is the time to make those purchases if you haven't already done so.
- People who are classified as employees can deduct a lot of their unreimbursed business expenses on their taxes if the total is more than 2 percent of their adjusted income - experts have advised that this deduction is going away in 2018 tax code.
- More 2017 deductions are going away for 2018, find out if can you prepay any such as home equity loan interest, property tax reduction is going to be capped? Some tax experts advise contacting your financial institutions to see if you can prepay some interest now.
- Can any income be delayed until 2018 when the tax rates are lower? Tax rates are lower for 2018, you may want to consider collecting in 2018 to save. For those with high incomes, this may be worth it to hold-off on collecting income.
- Again, consider donating to charity, if you're pressed for time because the end of the year is, well, it's here...donate!
- Lastly, consult your tax professional for these and other tax saving details for your particular situation.