Give To Charity
If you are a charitably inclined person and itemize your tax returns, consider making another gift by the end of the year. A lot of deductions are going away in 2018, which will make it harder for many people to take advantage of itemized tax returns. In addition, with the standard deduction nearly doubling, the number of people who get to take advantage of deducting charitable contributions will go down in 2018. As such, you might be better off making your planned 2018 charitable contributions by the end of the year, allowing you to get that tax deduction for this year, because it might be lost if you wait.
Try To Pay 2018 Property Taxes:
Starting January 1, 2018, there is a limit of $10,000 on all of your state and local taxes, including property taxes. While prepaying property taxes can be a good way to save on taxes, not all jurisdictions, states, and counties allow or can handle prepayment. Call your county and see if you can prepay. Some counties allow you to prepay online, others over the phone or by mail, and even others might require you to show up in person by the end of the year.
Pre-Pay Home Equity Loan/Mortgage:
If you have a mortgage or home equity loan that was not at all used for purchasing your home or remodeling your home, you will not be able to take a deduction in 2018 for any interest payments on this loan. As such, many people are paying off home equity lines of credit (HELOCs) before the end of the year.
With such a short amount of time to make any tax moves before 2018, you can’t delay. Most importantly, if you can, talk to a financial advisor or tax professional before the end of the year to see if any of these moves or any other tax moves could benefit you.
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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