The end of 2017 saw the passing of the Tax Cuts and Jobs Act of 2017 (TCJA). This new tax law is considered to be the largest tax reform in 30 years and we anticipate that most individual taxpayers will be impacted beginning with the 2018 tax year.
The new legislation brings a variety of changes to this year’s tax planning. Some concerns you may have with the new tax law include:
- How will the new tax law impact my mortgage interest deduction?
- Can I still deduct my charitable contributions?
- How will I be affected by the new AMT thresholds?
- Will I be itemizing my deductions given the new SALT (State and Local Taxes) limitation?
- Do I qualify for the new pass-through deduction available to Sole Proprietors, S-Corp Shareholders, and LLC Members?
- Are my tax withholdings on my paystub properly adjusted for the new tax rates?
I strongly believe that tax planning is not just a year-end activity. Given the recently passed TCJA, tax planning should be given a higher consideration and provided at an earlier point in the calendar year than in past years.
There are numerous planning opportunities and recommendations available to you now to address these new rules before the end of the year. Some areas of focus with your 2018 planning include: setting up a donor advised fund for your future charitable donations, maximizing retirement plan contributions, adjusting tax withholdings, installing solar panels, in addition to other planning moves to consider.
To help you strategize and consider your best planning options, try to work through your tax projection by the end of the summer. Start by reaching out to your CPA or tax preparer to set up an initial phone call. If you aren’t currently working with a tax professional, please check out our Directory of MDTAXES CPAs and consider contacting the CPA that has an office closest to you. Investing some time now might pay real dividends with tax savings down the road