December 22, 2017
With the upcoming tax changes on the horizon we at Red Fern Advisors & CPAs wanted to reach out to our clients who may benefit from some tax planning prior to the end 2017. The general tax planning strategy for reacting to the upcoming tax changes is to defer income until 2018 and accelerate certain itemized deductions to 2017.
Below are some possible steps you can take before January 1st, 2018:
-Prepay 2017 Ohio County Real Estate Taxes: Prepay your 2017 Ohio county real estate taxes that would normally be paid in 2018 by 12/31/17. You will have to contact your Ohio county auditor in order to determine the amount of the 2017 real estate taxes due in 2018. If you live in a state other than Ohio this strategy may or may not be available. Contact us to discuss.
-Accelerate Charitable Contributions: Any charitable contributions that you have planned for 2018, make those contributions by 12/31/17.
-Pay 2017 Fourth Quarter State/Local Estimates: If you make estimated tax payments to state and/or local taxing authorities pay your 4th quarter estimated tax payment, normally due 1/16/18, by 12/31/17.
The above represents general guidance. Everyone’s situation is unique. If you claim the standard deduction and do not itemize deductions, or if you are subject to the alternative minimum tax, then the above steps may not apply. That is why it is important that you contact us prior to taking any action so we may properly advise you of the potential benefits.
We encourage you to contact us next week with any questions you may have.
Happy Holidays from all of us at Red Fern Advisors & CPA’s.
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