2018 Year-End Tax Planning

To Our Clients,

As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Year-end planning for 2018 takes place against the backdrop of new laws that make major changes in the tax rules for individuals and businesses. For individuals, there are new, lower income tax rates, a substantially increased standard deduction, severely limited itemized deductions and no personal exemptions, an increased child tax credit, and a watered-down alternative minimum tax (AMT), among many other changes. On the business side, a number of tax law changes have gone into effect. C-corporations will need to adjust for the new corporate tax rate of 21%, the elimination of the corporate AMT, and new limits on business interest deductions. S-corporations and C-corporations alike are facing significantly liberalized expensing and depreciation rules. And there’s a new deduction for non-corporate taxpayers with qualified business income from pass-through entities. Despite this atmosphere of change, the time-tested approach of deferring income and accelerating deductions to minimize taxes still works for many taxpayers, along with the tactic of “bunching” expenses into this year or the next to get around deduction restrictions.

We have compiled a list of actions based on current tax rules that may help you save tax dollars if you act before year-end. Not all actions will apply in your particular situation, but you (or a family member) will likely benefit from many of them. Please keep in mind that the following items are only applicable to federal tax law. State laws differ widely and taxplanning strategies will need to be evaluated on a case-by-case basis in order to optimize them.

We can narrow down the specific actions that you can take once we meet with you to tailor a particular plan. In the meantime, please review the following list and contact us at your earliest convenience so that we can advise you on which tax-saving moves to make.

Please click here to read our 2018 Year-End Tax Planning Letter.