New Tax Legislation: Top Ten Action Items & Some Observations

With some of the most dramatic changes in US taxation in over 30 years forthcoming, individuals and businesses should take time to reassess their tax planning for 2017 and future years to determine how they will be affected. While most of the tax legislation changes take effect in 2018, there is a window in late 2017 for taxpayers to consider one-time actions to take advantage of the transition to the new rules.

Key Items to Consider For 2017 Tax Planning

Here are some of the key action items that you or your business might consider before year-end, in response to the new tax legislation:

For Individuals

  • Pay state & local income taxes as well as real estate taxes
  • Maximize charitable contributions
  • Apply for your state’s scholarship tax credit
  • Pay off your home equity line of credit
  • Consider a Roth IRA conversion
  • Review your estate plan and utilize annual-exclusion gifts
  • Harvest tax losses, accelerate deductions and defer earnings

For Businesses

  • Carry back net operating losses
  • Don’t wait to buy business assets
  • Harvest tax losses, accelerate deductions and defer earnings

To read the complete details of each key point, read our tax partner’s full assessment on the tax legislation.

 

Get tax planning help for 2018

The new tax legislation brings along with it significant uncertainty, but also provides taxpayers with unique opportunities to generate added tax savings. Generalizations can be a guide, but optimal navigation for you comes down to this: it depends. It depends on your unique set of circumstances and opportunities.

Consider all the ramifications before you act. If you have questions about any of these tax planning strategies or how the new law might apply to your tax situation, please contact a Bennett Thrasher tax advisor or call 770.396.2200.


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