Dec 14, 201610:27 PMFinancial Perspectives
with Michael Dubis, CFP
Year-end tax ideas — be careful about speculating on Trump’s policies
(page 2 of 2)
If you work with a qualified CPA or tax advisor and are planning for tax law changes, heading into 2017 would be the logical time to evaluate your tax strategies. I believe it’s reasonable for you to talk with your tax advisor about the probability that 2017 will likely look no worse than 2016 in terms of tax brackets, and at best will feature lower brackets. If so, it suggests the following big-picture ideas:
- Bunch deductions this year if you don’t trigger the alternative minimum tax. Attempt to defer income into next year, if possible. (Again, if you’re subject to the alternative minimum tax you should definitely have a tax advisor.)
- Further, if you are a small business owner, you may find it beneficial to do similar strategies for your business, if possible.
- Possible changes support strong consideration to investment tax loss harvesting this year. Further, deferring capital gains appears sensible assuming you don’t need the funds today and all else is equal in your planning life.
- Consider making larger charitable donations this year or even funding a donor-advised fund, given charitable deductions may be less valuable in future years if tax rates go down and/or the standard deduction is raised.
Again, if you think tax rates will change in 2017 and that you will benefit by it, you should contact your qualified tax advisor to review tax-planning strategies and do so soon.
I hope this inspires you to make progress with your dedicated tax advisor to optimize year-end tax planning needs.
MICHAEL DUBIS is a fee-only CERTIFIED FINANCIAL PLANNER™ and president of Michael A. Dubis Financial Planning, LLC. He previously served as lecturer at the University of Wisconsin Business School James A. Graaskamp Center for Real Estate. Mike can be reached at firstname.lastname@example.org.
This article contains the opinions of the author. The opinion of the author is subject to change without notice. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services described in this website or that of the author’s.
Mike Dubis does not guarantee the relevancy, appropriateness, or accuracy of any outside information or links. Mike Dubis does not render or offer to render personalized investment advice or financial planning advice through this medium. All references that might be made to an investment or portfolio's performance are based on historical data and one should not assume that this performance will continue in the future.
THIS COMMUNICIATION MAY NOT BE USED BY YOU AS A RELIANCE OPINION WITH RESPECT TO ANY FEDERAL TAX ISSUE DISCUSSED HEREIN AND IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY YOU FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON YOU BY THE INTERNAL REVENUE SERVICE.
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