Author Topic: Tax Bill:  (Read 1786 times)

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Offline the.irvine

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Tax Bill:
« on: December 16, 2017, 11:53:04 PM »
If Trump signs this new bill before Christmas time, would this become effective for 2017. So when we are ready to file our 2017 taxes in Q1 2018, we will be filing with new tax rules?

Offline qwerty

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Re: Tax Bill:
« Reply #1 on: December 17, 2017, 06:29:10 AM »
Everything I have read indicates an effective date of 1/1/18

Offline the.irvine

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Re: Tax Bill:
« Reply #2 on: December 17, 2017, 06:47:30 PM »
If that is the case, then there won't be any change in 2017's taxes?

Offline qwerty

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Re: Tax Bill:
« Reply #3 on: December 17, 2017, 07:55:32 PM »
Correct

Offline Changer

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Re: Tax Bill:
« Reply #4 on: December 23, 2017, 07:49:14 AM »

Online morekaos

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Re: Tax Bill:
« Reply #5 on: December 23, 2017, 08:00:17 AM »
Don’t think it matters.

https://www.nytimes.com/2017/12/15/us/politics/republican-tax-bill.html

Republicans' $1.5 Trillion Tax Plan Appears on Track to Pass Next Week

In a pre-emptive move against accounting maneuvers in high-tax states such as New York and California, the bill prohibits taxpayers from prepaying next year's state and local income taxes, in order to deduct them from 2017 taxes. That form of tax planning would have allowed taxpayers to benefit more from the full state and local deduction this year before it is capped next year.

Offline Changer

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Re: Tax Bill:
« Reply #6 on: December 23, 2017, 11:34:41 AM »
I guess you prepay just in case the bill does NOT pass. That's the thinking. There's no downside that I can see.

Offline paperboyNC

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Re: Tax Bill:
« Reply #7 on: December 23, 2017, 12:19:05 PM »
I guess you prepay just in case the bill does NOT pass. That's the thinking. There's no downside that I can see.

The bill already passed. POTUS signed it yesterday.

Offline Changer

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Re: Tax Bill:
« Reply #8 on: December 23, 2017, 01:29:47 PM »
To clarify, I was referring to the bill that would disallow prepaying property taxes.

Offline ChunkFinley

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Re: Tax Bill:
« Reply #9 on: December 23, 2017, 03:12:11 PM »
I'm not a tax guy, but my understanding is that the property tax deduction is capped at $10,000 in 2018. There is no cap in 2017, so if you prepay 2018's property tax in 2017 it could (depending on your AMT situation) all be deductible this year. Same is not true for SALT deductions as was pointed out.

Offline Kings

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Re: Tax Bill:
« Reply #10 on: December 24, 2017, 07:57:07 AM »
Don’t think it matters.

https://www.nytimes.com/2017/12/15/us/politics/republican-tax-bill.html

Republicans' $1.5 Trillion Tax Plan Appears on Track to Pass Next Week

In a pre-emptive move against accounting maneuvers in high-tax states such as New York and California, the bill prohibits taxpayers from prepaying next year's state and local income taxes, in order to deduct them from 2017 taxes. That form of tax planning would have allowed taxpayers to benefit more from the full state and local deduction this year before it is capped next year.

Quote
Correction: December 20, 2017
An earlier version of this article misstated the types of taxes that taxpayers would be prohibited from prepaying under the new tax legislation. It would bar taxpayers only from prepaying next year’s state and local income taxes, not property taxes.

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Offline lovingit

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Re: Tax Bill:
« Reply #11 on: December 25, 2017, 12:52:12 PM »
If you pay the taxes due on April 2018 before Dec. 31, 2017, you can deduct that for 2017.  You can’t pay your taxes that are due on Dec. 2018 to deduct for 2017.

 

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