12/27/2017
As you may have heard in very recent news, there will be significant changes to our tax code for 2018. Because of these changes, we want to let you know there are certain things you can do during the last few days of 2017 to possibly save tax dollars.
The following items are still deductible under new tax law but because of increased standard deductions and other limitations, many taxpayers will no longer receive a tax benefit for them. If you normally itemize your deductions, it may benefit you to pre-pay these by December 29th, 2017 if possible:
Mortgage Payments. Make all January payments in December of this year if possible.
Personal Property Taxes. Pay your 2018 property taxes at your local county government center by December 29th, 2017 if possible. .
Charitable Contributions
Medical Expenses
If you are making State quarterly estimated income tax payments, pay the 4th quarter installment by December 29th, 2017.
The following items will no longer be deductible in 2018. It could benefit you to pre-pay these expenses in December, 2017 if possible:
Employee business expenses. This includes union dues, tools, equipment. Please note, this pertains to employees only. Business owners can still take these deductions.
Investment expenses and advisor fees.
Mortgage interest on 2nd mortgages and 2nd homes. (Pay January payment in December, 2017) This does not include rental properties.
If you have any questions as to how to pay any of these items early, please contact the necessary agencies involved.
The purpose of this email is just to alert you to these issues. Because of the time constraint we are unable to answer everyone’s questions individually. This new tax bill is very complex and was passed so recently that unfortunately, we will not have the time to analyze your specific tax situation before the end of 2017. There is information available online. If you want to take advantage of any the above pre-payment recommendations, and are financially able, it is a good idea to do so. Prepaying these items early will benefit many clients, but not all.
Rosenbush & Clark Tax Services
Linda Rosenbush
Amy Clark