Based on what we know to date, taxpayers should look at accelerating deductions. Mortgage interest deductions are being proposed to be limited to $500,000 for new debt, property tax deductions limited to $10,000 and with the doubling of the standard deduction, taxpayers’ charitable and medical deductions may not save you on taxes for 2018 and on.
If you are a generally charitable person, you may want to consider a Charitable Trust, Donor Advised Fund or Private Foundation to accelerate deductions into 2017 for your future years’ donations.
If you generally are able to deduct medical expenses, you should accelerate those expenses into 2017. If you are not paying Alternative Minimum Tax (which is being repealed in the tax bill proposed), you should also look at paying your property taxes and your state and local income tax estimated tax payments in December as opposed to waiting until January or even your April balance due.
Stay tuned as we learn more.