The President has signed the Tax Cuts and Jobs Act of 2017 and there are a few things you can do before year end to save taxes in 2017 that might not be deductible in 2018:

    1. Pay your state estimated taxes due in January before year end.  Even if they aren’t deductible due to Alternative Minimum Tax, you won’t know for sure until your 2017 return is prepared and you will only be paying them a few weeks early.

 

    1. Make charitable contributions before year end if you won’t be able to deduct them next year due to the increased Standard Deduction.  You can even put them on a credit card now to get the deduction in 2017.

 

    1. In states other than Washington check to see if you can prepay any real estate taxes that are due in 2018.  States such as California, Arizona and New York have taxes that are already due and can be paid before year end to get the deduction.

 

    1. If you deduct Sales Taxes instead of State Income Taxes and were going to purchase a vehicle or pay for the home remodel that is complete in the following year, do it before year end to get the sales tax deduction in 2017.

 

    1. Miscellaneous Itemized Deductions such as unreimbursed employee business expenses, a home office and tax preparation fees will no longer be deductible in 2018, so make sure they are paid before the end of 2017 to get a deduction.

 

For more information, please contact Tax Director, Rob Keasal at 206.382.7724

TAGGED: Tax Reform, TCJA
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