Start Your Year-End Tax Planning Now
As the end of 2017 approaches, it’s time to start thinking about tax planning strategies. However, the current political landscape is causing a great deal of uncertainty about federal tax positions and the best strategies for tax mitigation over the coming years. Since Congress and the presidency are both held by the GOP, and both are pushing for tax cuts and tax reform, we believe such reform is inevitable. But right now, we don’t know if tax reform will occur this year or whether or not it will provide significant benefits to the middle and upper classes.
As of November 1, 2017, the tax professionals at White Nelson Diehl Evans LLP (“WNDE”) recommend that taxpayers take traditional year-end planning steps to defer income and accelerate expenses as much as possible. This is based on the anticipation that 2018 will bring tax reform and lower overall tax rates. However, if we should receive good news from Washington, D.C. about tax cuts effective retroactive to January 1, 2017, this recommended approach could be altered. And while we expect rates to be lower, taxpayers must also keep in mind that certain deductions are being looked at for elimination. For California taxpayers, this may mean the elimination of state tax and property tax deductions. With high income tax rates and the cost of housing, losing these deductions could have a significant impact on California taxpayers.
We strongly recommend that our clients contact their WNDE tax professional prior to year-end to determine if there are any tax planning strategies they can take advantage of, especially if there have been significant transactions or changes in 2017. Additionally, tax filers need to gather and provide all tax documents in a timely fashion. Waiting too close to year-end and the filing deadlines gives tax preparers less opportunity to look for, and take advantage of, tax strategies.
At WNDE, we strive to be the best alternative for professional tax advice. Our focus is primarily on closely held businesses and their owners,which allows us to use our business expertise to provide tax planning opportunities and strategies specifically designed for them. We have a very low staff turnover rate, which provides our clients with individuals who have previously worked on their returns and are familiar with their industry and who have developed close working relationships with the clients,thereby allowing WNDE staff to have the clients’ best interests in mind. We provide our staff with ongoing training about current tax laws, and we keep our staff informed of upcoming changes and how these changes could impact our client base.
So with the new year fast approaching, please contact your WNDE tax professional as soon as possible to discuss year-end planning considerations and to see what we can do to help.