2017 Year-End Tax Tips

Estimated State Tax Payments

If you make estimated tax payments it is advisable to pay your state estimated taxes before year-end. Since state taxes are deductible on your federal return and if you itemize your deductions, the  payment will increase your deductions for 2017.  In 2018 State and Local Taxes and property taxes are limited to $10,000

Defer Income

Employees who earn salaries do not have a choice when they receive their paychecks. Self-employed individuals have more leeway and can delay billings until next year. Rates are lower in 2018

Charitable Contributions

Always receiving those daily  requests from charities, then make a charitable donation before year-end and receive a deduction for 2017. Please insure that the organization has 501(c) status, named for the IRS regulation governing charitable entities for deductibility.

 

Sell Old Losing Investments 

2017 has been a excellent year for the stock market. Many people who have sold stock or received distributions from mutual fund companies have capital gains. One method to lower the capital gains tax, is to sell those stocks which you have large losses with little chance of recovery or are worthless. Capital losses offset capital gains dollar for dollar. Any excess losses over $3,000 must be carried forward to future years.