2017 Top 10 Year-End Tax Tips released by CPA Tom Wheelwright
With this $1.5 trillion GOP Tax Bill pending approval, and the biggest tax code change in 31 years, 2017 is especially important for year-end planning to protect assets. With many tax benefits going away in 2018, there are ways to maximize these benefits in 2018, such as paying any state taxes due for 2017 before the end of the year.
Wheelwright emphasizes, "Everyone will be impacted by this major GOP Tax Bill, and it's important to take action now to protect your bottom line. While the new tax plan is being sold as a tax cut, there are tax increases for some people. The more you get educated and take recommended steps by December 31, the more money you can keep."
After actually reading the nearly 1,100-page tax bill (and most House and Senate members casting votes have not read it), CPA Tom Wheelwright offers this advice to everyone wondering what actions to take before year-end 2017 to reduce taxes in 2018.
2017 Top 10 Year-End Tax Tips from CPA/CEO Tom Wheelwright
1. Prepay your 2017 state income taxes by year-end (this deduction will be limited in 2018).
2. Accelerate any of your children's unearned income into 2017 (rates go up in 2018).
3. Push business income to 2018 (rates go down in 2018 for most, plus 20% deduction in 2018).
4. Buy and begin using an electric car (tax credit expires at the end of 2017).
5. Recognize any possible business losses in 2017 (business losses are limited in 2018).
6. Prepay investment expenses and tax prep fees in 2017 (non-deductible in 2018).
7. Pay any moving expenses related to a job in 2017 (deduction is eliminated in 2018).
8. Wait to buy a business vehicle until 2018 (depreciation on luxury autos goes up substantially in 2018).
9. Sell business processes or patents before end of year (treated as ordinary income in 2018, capital gain in 2017).
10. Sit down with your tax advisor and project taxes under both 2017 and 2018 laws for additional tax planning.
During the last major tax reform in 1986 under President Ronald Reagan, Wheelwright worked for the National Tax Office at Ernst and Whinney (now Ernst and Young) in Washington D.C., and can provide insights on year-end planning and transition steps.
Tom Wheelwright is a CPA, CEO of ProVision (CPA firm in Tempe, Arizona) and Best-Selling Author of Tax-Free Wealth. Wheelwright is a leading wealth and tax expert, global speaker, and Entrepreneur Magazine Contributor. Tom is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki (Rich Dad Poor Dad), Tom frequently speaks at conferences worldwide to entrepreneurs on these topics. His work has been featured in The Wall Street Journal, Forbes, Accounting Today, Investor's Business Daily, Consumer Reports, USA TODAY, FOX & Friends, CBS 5 News Phoenix, ABC News Radio, NPR, and many more media. http://taxfreewealthadvisor.com
Liz Kelly, 310-987-7207