Tax Bill Becomes Law Today!
Earlier this morning, the President signed “The Tax Cuts and Jobs Act” into law which becomes effective January 1, 2018. This new law makes a plethora of changes to the tax code, some permanent and some that will expire on December 31, 2025. Fortunately, tax returns prepared in early 2018 for tax year 2017 will generally not be affected by the new law.
Over the next couple of weeks, I will be taking continuing education courses to learn and interpret the new law and its application to tax preparation and planning. I plan to offer a couple local workshops in January as well as individual appointments for those who are interested in understanding the impact this bill will have on your tax situation. I will post more information on this blog, website, and Facebook.
Last Minute 2017 Tax Planning ~ You Still Have Time To Do…
A few of the Tax Planning Strategies you many want to consider are:
- Pre-Pay Property Taxes that are not due until 2018 before December 31, 2017.
- Pre-Pay Mortgage Payments that are not due until 2018 before December 31, 2017.
- Give Gifts to Charity before December 31, 2017. To check for qualified charities eligible for the tax deduction, see this link https://www.irs.gov/charities-non-profits/exempt-organizations-select-check.
- Pay Medical Bills that you have outstanding.
- Consider Contributing to Traditional IRA. You have until April 15, 2018 to fund the contribution & still be eligible for a tax deduction on your 2017 tax return.
- Pay off Student Loans if possible.
Are You Over 70 ½ ? Don’t Forget That RMD!
Don’t forget to take your Required Minimum Distribution (RMD) by December 31. For those who turned 70 ½ in 2017, you have until April 1, 2018 to take your first RMD. However, if you choose this, then two RMD’s must be taken in 2018.
Learn more about RMD’s from this excellent article by Kiplinger – https://www.kiplinger.com/slideshow/retirement/T045-S001-8-things-boomers-must-know-about-rmds-from-iras/index.html?rid=EML-wealth&rmrecid=3144870188.
Merry Christmas & Happy New Year!