If Congress is successful in lowering tax rates for at least
some taxpayers in 2018, there are several year-end taxing-saving
tips to consider prior to December 31st.
Accelerate Deductions
If the standard deduction is increased for 2018, this may be the
last year for many taxpayers to benefit from itemizing their
deductions. Therefore, taxpayers with a mortgage should consider
making sure their January mortgage payment is credited to their
loan prior to year-end to be able to deduct an extra month's
worth of mortgage interest.
Likewise, taxpayers who expect to owe state taxes for 2017
should consider prepaying their taxes due prior to year-end to
capture the tax deduction in 2017. This is especially true if
Congress, as has been proposed by the GOP, eliminates the deduction
for state and local deductions. However, taxpayers subject to the
alternative minimum tax (AMT) will not benefit by this strategy
since state taxes are not allowed as a deduction for
