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Tax Alert

Proposed Congressional Tax Reform: Take Action Now

Tax reform & itemized deductions image

December 15, 2017

In anticipation of potential changes to individual income tax rules that may result from tax reform efforts currently taking place in Congress, there may be actions you should consider taking before the end of the year to take advantage of potential timing opportunities.

Individual Deductions

The individual tax deduction for state income taxes and real estate taxes may be capped at $10,000 for payments made after December 31, 2017 for both types of taxes combined. If you anticipate owing state income tax for 2017 you should consider paying the balance due before the end of the year. If your combined state income tax and real estate taxes exceed $10,000 and you would normally pay the first half of the real estate tax assessment in December and the second half in the following year, you may want to consider paying both installments before the end of the year.

However, for those taxpayers subject to the alternative minimum tax in 2017 there may be limited benefit to making the payments in 2017. You should consult with your tax advisor to discuss the potential benefit prior to accelerating payment of state income tax and/or real estate taxes.

Start Planning Now

For more information about the effects of Congress’ proposed tax reform, contact your AGH tax professional or Shawn Sullivan, AGH’s senior vice president of tax services using the information below.

Shawn Sullivan

Senior Vice President,
Tax Services
Shawn serves as one of two primary leaders in the firm’s large tax group. He has extensive public and private experience in the fields of tax and accounting and works frequently with clients in the manufacturing, wholesale/retail distribution, real estate development and management, construction, and contractor industries. In addition to enhancing business performance to minimize tax consequences, he has experience in mergers and acquisitions and international tax and business structuring.

A certified public accountant, Shawn is a member of the American Institute of Certified Public Accountants, the Kansas Society of Certified Public Accountants (KSCPA) and chairs the KSCPA Committee on Taxation.
Shawn Sullivan
Shawn Sullivan
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NOTE: Any advice contained in this material is not intended or written to be tax advice, and cannot be relied upon as such, nor can it be used for the purpose of avoiding tax penalties that may be imposed by the IRS or states, or promoting, marketing or recommending to another party any transaction or matter addressed herein.