2016 Tax Moves That Take Advantage of One of Trump's Tax Proposals
Article Highlights: - Trump Proposes Higher Standard Deductions In 2017
- Tax Strategy – Prepay Deductible Expenses In 2016
- Take Standard Deduction 2017
- Deductible Expenses That Can Be Prepaid
There is no guarantee of these higher standard deductions. But since both the House and Senate have Republican majorities, the odds seem to be in favor of this happening.
Assuming the standard deductions are increased, there is a way you can benefit in 2016. If your itemized deductions are generally lower than proposed increased amounts, you might consider prepaying as many itemized deduction expenses as possible in 2016 and then taking the standard deduction in 2017.
Considerations include prepaying your charitable tithing or other charitable obligations, property tax installments, and any state income tax that might be due on your 2016 return. Also consider any unpaid medical expenses and employee business expenses that might occur.
Call our office to see if this strategy might work for you without triggering the alternative minimum tax. But don’t delay; the expenses must be paid before year-end!
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