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5 Last Minute Tax Moves To Make Now Before 2018 http://ift.tt/2CrrbMU The New year is almost upon us, and we all know what that means. We’re going to have to deal with a lot of resolutions and new tax reform. Now's the time to implement smart financial moves to help lower your tax bill. So, with that in mind, here are 8 financial moves you need to make so you can take advantage of the new Tax reforms. Charity And Donations Making charitable donations is something you should be used to by now. Even if you’re not inclined to giving to charity, you should consider changing that mindset if you want to take advantage of the tax deductions it presents. The tax overhaul leaves the deductions for charitable contributions unchanged, but you'd still have to itemize in order to claim it, and that's much of a high bar when you think of the nearly doubled standard deduction. Consider Paying Off Sizable Medical Expenses Before the year runs out, you want to consider making a move to pay off any sizable medical expenses you might have incurred. One of the conflicts making the rounds between congressional tax proposals involves deductions for medical expenses. Whether taxpayers should continue taking medical expenses that are above income-based thresholds as an itemized deduction or not. So, if you've incurred any sizable healthcare bills, you may want to pay them off before the end of the year to enable you to qualify for this itemized deduction. Prepay Student Loan Interest It will be a blow to many taxpayers if the tax reform eliminates the deduction of the interest paid on student loans, because the student loan interest deduction, doesn't force payers to itemize in order to claim it. If that happens, it would be smart to pay off any student loan you might have incurred sooner than you otherwise would have. Settle Expenses That Qualify As Standard Deductions It’s no news that the new tax reform package would definitely increase standard deductions, hereby, making it also increasingly less valuable for taxpayers to itemize. Charitable deductions might not be of much help if your standard deductions are higher than your total itemizable expenses. It's a good move to have any other expenses prepaid in 2017 to enable you to claim the breaks in the year’s tax return. Defer Income Into Next Year If possible, defer compensation until next year. To implement this move, however, it depends on the accounting method that you make use of in your business. If you're not sure of what to do in this case, it's best to consult a tax professional to help you decide. Talk To A Financial Professional You won’t see better advice than this. If you’ve yet to have someone give you professional advice on your tax situation, now’s the right time to hire someone. With the short window from the passage of the tax bill and the coming year, that doesn’t give much room for any major decisions, but it’s better early in the New Year to start making solid decisions than never. Finish the year tax-strong and be prepared to take action in order to take advantage of the new tax reforms. You definitely do not want 2018 to bring new tax surprises that you aren't expecting. Business via Forbes - Entrepreneurs http://ift.tt/dTEDZf December 30, 2017 at 03:34PM
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