Dec 30, 2017
Posted in Tax software
Moving forward is a timely & must happening process of whole life; pages of the year 2017 have also turned at full pelt right in front of our eyes, but still, there are two days remaining which can make a huge change. Both, passing year (2017) and upcoming year (2018), will be benefitted by considering these two days in account wisely. According to financial planners, 2018 will be the year which visions very different outlook over taxes. As the end of 2017 is bringing vast changes of finance world in front of all- it is better to fix ourselves with tax moves that will secure us in 2018.
Amidst the way any particular could enumerate deductions in taxes such as mortgage interest or SALT, there are some other realignments taking place as well. The unexpected falling in corporate tax rates and displacing of federal income tax brackets are somehow not hidden at all. Though, these tax moves may appear as flurry end-year activity, especially at places which are extremely dominated by state and local taxes (SALT).
Last week, in 2017 itself, governor of New York had also taken fortuitous action to convince state locals to prepay property taxes. Every state residents must focus on making at least these 4 tax moves before arriving towards 2018.
This could be a wise practice to make in the last two days of the year 2017 as there will be a high standard deduction on property in the 2018 year. So, it will be even more beneficial for those who pay quantum of property taxes. One of the financial planners in Dallas, Wade Chessman states that “Consider prepaying the property taxes for the tax year 2018 in 2017 if your local tax authority will allow it.” A great move will be to check whether your local taxing district is allowing prepayment of 2018 taxes in 2017 or not.
There’s no loss as well to wait for Roth conversion before year-end. It will be equally wise to wait for. A financial planner in Frisco, TX, Ryan Fuchs says, “Wait until 2018 when rates will be lower.” As the conversion does take place in a timely manner, unexpectedly. Taking in the notice- already made Roth conversion will also make good options for you.
For good persons, who are donating to charity and meanwhile itemize their deductions in the year 2017 will have to convey standard deduction in the year 2018. Such charity, in order to pre-plan 2018 charitable donations in last two days of 2017, needs to contribute before 31st December. For instances when you are not sure where to put charity for 2018, a donor-advised fund will work great for you. The donor-advised fund helps you to take a wise tax move that too at your own leisure in the future.
You’ll be surprised to know that there will be no more deductions on HELOC payments in the upcoming year, which means you can outsource an extra check in the left two days and save yourself from HELOC interest. Yes, that’s pretty usual to say, the same can happen only when you’re residing with balance in the last of December 2017. The “extra HELOC payments” idea is of Theresa Rosen, a financial planner locating in Sudbury.
Well, there is no significant theories to convey how tax changes in the upcoming year going to affect each of us. But, it’s equally important to plan your taxes in the year 2018 by making moves in the year 2017.
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