Most of the time, year-end tax planning is based on tried-and-true principles. For instance, people often end up accelerating deductions into the current year to offset their tax liabilities, while deferring income to the next year. But this year-end is much different than most.
Major tax legislation at the end of 2017 has suspended many prized deductions for 2018 through 2025, while cutting tax rates. As a result, your year-end tax planning will likely need some new moves. Here are a handful of the biggest changes to consider:
Altered and eliminated tax deductions
Enhanced tax deductions
Upcoming alimony change: If you're planning on divorcing at year-end, consider that alimony payment deductions are eliminated for divorce settlements reached on or after Jan. 1, 2019.
Depending on your total itemized deductions, it may or may not make sense to accelerate certain deductions into this year. A review of your year-to-date deductions should be completed before you make any moves.
Call today if you have questions about your 2018 year-end tax plan.
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