2017 Tax Reform: Last-minute year-end moves in light of Tax Cuts and Jobs Act

Congress is enacting the biggest tax reform law in thirty years, one that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill, and the amount of federal tax you will pay. Since most of the changes will go into effect next year, there’s still a narrow window of time before year-end to best position yourself for the tax breaks that may be heading your way. Below is a quick rundown of last-minute moves to consider.

Lower tax rates coming. The Tax Cuts and Jobs Act will reduce tax rates for many taxpayers, effective for the 2018 tax year. Additionally, many businesses, including those operated as pass-throughs, such as partnerships, may see their tax bills cut. The general plan of action to take advantage of lower tax rates next year is to defer income into next year.

Some possibilities follow:

Disappearing or reduced deductions, larger standard deduction. Beginning next year, the Tax Cuts and Jobs Act suspends or reduces many popular tax deductions in exchange for a larger standard deduction.

Here’s what you can do about this right now:

Other year-end strategies. Here are some other last-minute moves that can save tax dollars in view of
the new tax law:

These are only some of the year-end moves to consider in light of the new tax law. If you would like more details about any aspect of how the new law may affect you, please contact your tax professional.

Jordan Empey, CPA, Tax Partner
Jordan has been in public accounting since 2005. He specializes in serving real estate, construction clients and privately held companies.