5 Tax Actions Businesses and Individuals should consider taking before December 31, 2017

To benefit even more from the new tax bill below are five things you should consider doing before December 31, 2017.

  1. Pre-pay your property taxes (if you elect itemized deductions)

  2. In 2018 the deductions for state and local taxes will be limited to $10,000 so it will likely play to your advantage to pay your taxes before December 31, 2017.

  3. Defer Income

  4. Tax rates for most will go down in 2018 so deferring income for individuals and businesses will save you money.

  5. If you are selling stocks or closing a sales deal consider waiting until after January 1, 2018 to take advantage of the lower tax rates.

  6. Pay personal deductible expenses early (if you elect itemized deductions)

  7. Employees, contractors and freelancers are allowed to take a deduction for nonreimbursable employee expenses like union dues, job training costs, subscriptions related to your profession, etc. Starting January 1, 2018 these types of expenses will no longer be deductible.

  8. Pay business expenses early

  9. For businesses any legitimate business expenses that you can pay early will likely help you reduce your tax liability for 2017 and increase your income for 2018 which is when the lower tax rates will go into effect.

  10. Consider making charitable contributions (if you elect itemized deductions)

  11. In 2018 the threshold for itemized deductions will increase so it may benefit you more to make the contributions prior to December 31, 2017.

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