The narrowly-approved tax bill that just passed through the Senate offers a number of potential benefits in addition to possible drawbacks. Many taxpayers may face lower overall tax rates, but those who rely heavily on exemptions and itemized deductions may not be quite as fortunate. These individuals may be subject to higher tax rates in 2018 and beyond. To prepare for these possible changes, it might be a good time to consolidate a few years of charitable gifts, pay property taxes early, and pre-pay state income taxes. With significant implications for some taxpayers, it is important to devise a strategy to accommodate the looming tax reform.
See Craig Richards, The Death of Tax Deductions? Actions to Consider Before Year End, Fiduciary Trust International, December 7, 2017.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
