But before we get any further into 2018, I wanted to point out a couple of items that you might need to consider doing something about before we get too much further into the year.
Home Equity Line of Credit Interest:
NO LONGER DEDUCTIBLE in 2018. If you have a HELOC, the interest you pay on that debt is no longer deductible as mortgage interest. If this is a significant deduction to you, you may consider refinancing in order to get the debt classified as deductible interest.
Itemized Deductions that are 2% items:
If you have previously claimed enough other itemized deductions to exceed the 2% AGI limitation, you will lose those deductions in 2018. These deductions included: Un-reimbursed Employee Expenses, Advisory Fees on taxable investment accounts, Home office deductions if your employer does not provide an office. This category contained several deductions that will not longer be available to you in 2018 and going forward unless the new tax legislation gets repealed.
If you are a sales person and previously claimed unreimbursed employee expenses this way, you need to discuss a new arrangement with your employer so that these kinds of expenses are reimbursed to you from the employer.
Your tax situation will be different in 2018.
There are many ways in which the new legislation might affect you in 2018. We suggest that you request some tax planning before the fall in order to know the impact before it gets too late to do something about it. That would include changing the amount of tax you are paying in because it could be too much. We hate being the bearer of bad news when someone did not come to us for advice during the time frame we could have done something about it.
Have a great spring and summer. We will be available for tax planning and other consultation in May and beyond.