As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next.
Year-end planning for 2018 takes place against the backdrop of a new tax law — the Tax Cuts and Jobs Act — that make major changes in the tax rules for individuals and businesses.
For individuals:
- there are new lower income tax rates,
- the standard deduction has been substantially increased,
- itemized deductions have been severely limited and with no personal exemptions,
- the child tax credit has been increased, and
- the alternative minimum tax (AMT) has been watered down, among many other changes.
For businesses:
- the corporate tax rate is cut to 21%,
- the corporate AMT is gone,
- there are new limits on business interest deductions,
- the depreciation and expenditure rules have been significantly liberalized, and
- there’s a new deduction for non-corporate taxpayers with qualified business income from pass-through entities.
We have compiled a checklist of actions based on current tax rules that may help you save tax dollars if you act before year-end. Not all actions will apply in your particular situation, but you (or a family member) will likely benefit from many of them. We can narrow down the specific actions that you can take once we meet with you to tailor a particular plan.
Book an appointment and we’ll send you our year-end tax planning letter that could help you lower your tax bill this year and next.
