2018 tax deductions

[aks]

Hello all ,

Happy holidays and a very happy new year to all. Have been hearing all kind of things about the new tax plan.

Any suggestions for things to do with new tax plan on us. I have been hearing that physicians would be better off paying property taxes for 2018 in 2017 as we won’t get much deduction in 2018. Please let me know what you think of this and if you all are doing this or not. Same with state taxes. I live in Illinois.

Thanks again

[q-school]

we prepayed property taxes and made early quarterly payment of state taxes.

i don't think it's a do or die thing.  maybe end up saving few thousand.

 

[ajagannathan]

aks wrote:

Hello all ,

Happy holidays and a very happy new year to all. Have been hearing all kind of things about the new tax plan.

Any suggestions for things to do with new tax plan on us. I have been hearing that physicians would be better off paying property taxes for 2018 in 2017 as we won’t get much deduction in 2018. Please let me know what you think of this and if you all are doing this or not. Same with state taxes. I live in Illinois.

Thanks again

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I'm in IL, I prepaid 2017 property taxes, did not do 2018 (Will county allows two years prepay) as well as I would not benefit much as I'd end up limited by the AMT.  As far as I have read, we cannot deduct prepay of state income tax for 2018.

[jfoxcpacfp]

iradoc wrote:

As far as I have read, we cannot deduct prepay of state income tax for 2018.

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Well, you can, but it won't be deductible in 2017. When someone refers to prepayment of quarterly taxes, they are likely referring to 4th quarter 2017 taxes, which will be deductible. For most, if not all, states, the 4th quarter is not due until January, so you may be able to boost your 2017 deductions by prepaying the 4th quarter in December.

[ajagannathan]

jfoxcpacfp wrote:

iradoc wrote:

As far as I have read, we cannot deduct prepay of state income tax for 2018. 

Click to expand…

Well, you can, but it won’t be deductible in 2017. When someone refers to prepayment of quarterly taxes, they are likely referring to 4th quarter 2017 taxes, which will be deductible. For most, if not all, states, the 4th quarter is not due until January, so you may be able to boost your 2017 deductions by prepaying the 4th quarter in December.

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Ah, gotcha, thanks for the clarification!

[jz]

IL resident agreeing with above.   Pay your state 4th quarter state estimate before Dec. 31.  Pay your 2017 property taxes (normally payable in May and Sept. 2018) before Dec. 31. Normally we pay our property taxes In-arears. Donate to your charities or DAF for 2018 now, before Dec. 31.

[Dreamgiver]

Our deductions will be above the $24,000 married standard deduction for 2018 so I won't be paying anything in advance.

[q-school]

I’m kind of shocked how many people don’t fall in AMT here. I would have guessed 75 percent of non students. Not representative sample of upper middle class to rich America.

[nachos31]

Falling into the danger...err AMT zone for 2017 so no use prepaying anything  :?

[jfoxcpacfp]

q-school wrote:

I’m kind of shocked how many people don’t fall in AMT here. I would have guessed 75 percent of non students. Not representative sample of upper middle class to rich America.

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I think many of the forum posters make too much and/or are in no-income tax states such as TX and FL.