Matter & Substance
  December 7, 2017

Pre-Tax Reform Planning Opportunities

NOTE: The information contained in this blog post may no longer be applicable. An update can be found at here.

Tax Reform proposals in the House and Senate have been changing rapidly as Congress looks to complete a comprehensive tax reform bill, and we're here to provide updates on tax reform and 2017 tax planning opportunities.

Changes to Itemized Deduction for Taxes

As it stands, both proposals limit the state, local, and property tax deductions to a maximum of

  • $10,000 deduction for property tax and
  • No deduction for state and local taxes. 

Recent headlines suggest, however, that the proposal may be changed to allow state and local taxes to be included in the $10,000 deduction. These deductions are disallowed for Alternative Minimum Tax purposes.

2017 Tax Planning Opportunities

Due to the potential limitation of these deductions for the 2018 tax year, many taxpayers will have an opportunity to generate tax savings by prepaying state and local taxes and/or property taxes by year-end (while the deductions are still available).

There are multiple factors to determine if these tax planning strategies apply to you. Give your M&S tax advisor a call today to learn more!