Provisions in new tax bill that may impact you / May want to take action before Dec.
As we look forward to ending this year and bringing in 2018 with lots of good cheer, there may be just a little more work to be done in 2017. In light of the new tax bill that was just signed by President Trump today, there are some provisions that could impact your tax situation immediately and you may want to take action before December 31.
The main area where many of our clients will be impacted is the cap of $10,000 on state/local income & property taxes ($5,000 for married taxpayers filing separately). In 2018, if your combined taxes for these items is above $10,000, you will not be able to deduct that excess amount on your federal return. It may be possible to pre-pay some of your 2018 property taxes in 2017 and get the deduction in this tax year. The pre-pay of 2018 state income taxes isn’t allowed as an itemized deduction in 2017 because the tax has not been assessed. The IRS was quick to close that loop hole. Another item that may impact you is the home-equity loan interest deduction was repealed through 2025.
Here are links to two articles you may find useful. I recommend you reach out to your tax professional ASAP to discuss whether it makes sense to take any action in 2017
Before the year is out, I hope you can slow things down, spend quality time with family & friends and take a few quiet moments to reflect. All of us here wish you and your families a safe & happy holiday season!