5 Tips to Prepare for GOP Tax Bill

Significant tax changes are being discussed in Congress. If approved, these will take effect in 2018. Many deductions may be eliminated. While the proposed legislation is not yet a done deal, consider the following tax planning opportunities by end of 2017:

  • If you pay estimated taxes, make your final state tax payment in December instead of waiting until 2018 (unless you are subject to AMT).

  • If you itemize, accelerate state and local taxes, charitable contributions, unreimbursed business expenses, and medical expenses to 2017.

  • Donate used clothing and furniture to charity. Estimate the value and keep the receipt. My favorite local anti-poverty organization of recent is A Wider Circle. They approach things holistically, by providing job training, housing, education, & wellness support to families in poverty for a minimum of two years.

  • Prepay next year's property tax (unless you're subject to AMT).

  • If your income is significantly lower this year, consider converting IRAs to Roth IRAs.

For more ideas on year-end tax planning, I recommend reading this summary provided by my tax accountant at Norberg, Davis, Bourne, & Painter, LLP.

If you are considering converting your Traditional IRA to a Roth, schedule a free discovery call with our firm's certified financial planner so we can discuss the pros and cons with you.

Happy Thanksgiving!

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