If the tax bill passes what needs to be done before 1/1/2018?

Tax, SDIRAs & Cost Segregation
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If the tax bill passes what needs to be done before 1/1/2018?

Account Closed
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes

Do any CPAs or tax lawyers have any recommendations on thing to change by the end of the year?

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Brandon Hall
CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
8y

@Account Closed standard advice would be to pre-pay 2018 property taxes (primary and secondary residences), Jan 2018 mortgage (primary and secondary residences), and your 2017 state tax bill (if you owe).

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  • Brandon Hall
    CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
    8y

    @Account Closed standard advice would be to pre-pay 2018 property taxes (primary and secondary residences), Jan 2018 mortgage (primary and secondary residences), and your 2017 state tax bill (if you owe).

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  • Account Closed
    OP
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    @Brandon Hall   I am also considering putting some assets in pass-throughs..

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  • Chase Gochnauer
    Investor · Des Moines, IA · Member since 2015 · 380 posts · 201 votes
    8y
    I echo Brandon. I'm doing exactly what he's saying per my CPA recommendation.
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  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y
    Brandon Hall It appears that they are not permitting a deduction for prepaid state income taxes. So I would say yes prepay for property tax and mortgage interest but not state income tax.
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  • Brandon Hall
    CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
    8y

    @Account Closed for what purpose? Sole-props are generally afforded the same benefits. We're not 100% sure how the wage limitation applies to sole-props and LLCs over S-Corps as of yet. 

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  • Brandon Hall
    CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
    8y

    @Logan Allec you are correct - there is not a deduction for pre-paid 2018 state income taxes. Which is why I said to pre-pay the 2017 state income tax bill, rather than waiting until April 15th to pay :)

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  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y

    Oh gotcha yes you did say 2017 I saw "prepay" and auto assumed 2018.

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