Year-End Tax Planning Recommendations

With tax reform moving full speed ahead, there are a number of planning ideas to consider before we wrap up 2017.

The biggest push is to defer income and accelerate deductions before the end of the year. This is because there are significant savings that could be achieved when you consider the proposed tax rate change from 2017 to 2018.

Ways to defer income into the new year:

• Hold off sending bills at year-end so you can defer the collection of payments from customers.
• Consider deferring a bonus.
• Delay a sale of any assets into the new year.
• Consider an accounting method change if appropriate.

Ways to accelerate deductions:

• Fully fund your retirement plan.
• Pay all outstanding bills if cash basis by year-end.
• Consider year-end contributions to charities, maybe double up or consider a donor-advised fund.
• Consider paying your 2017 state taxes by 12/31/17 even if they are not due until 2018.
• Consider paying your real estate tax early.

These are a few general items to consider, more information will be coming soon when and if the tax bill gets signed. Click here to read the December 13 Tax Reform Update.

As an independent member of the BDO Alliance USA, the world's 5th largest accounting network, we are happy to share updates coming out of their national tax practice.

Click here to download BDO's 2017 Year-End Tax Planning for Individuals

Click here to download BDO's 2017 Year-End Tax Planning for Businesses

As always, if you have questions or want to know how planning should be tailored for your specific situation, please contact one of Kruggel Lawton's tax professionals. Simply select "Tax" from the service line dropdown menu on Kruggel Lawton's team directory to get connected.

Dan Smogor, CPA, CGMA
Tax Partner
dsmogor@klcpas.com| 574.289.4011