As we are sure you have heard, the new tax law, the Tax Cuts and Jobs Act (H.R. 1) has been signed into law. These changes will take effect primarily for 2018 tax returns. Attached is a summary of the major items in the new law.
A few of the larger items affecting most of you are as follows:
20% reduction in taxable income from pass-through companies such as S corporations, LLC's and partnerships, and sole proprietorships, which is limited to 50% of all wages paid
personal income tax rates have been reduced a few percentage points
limitation of the personal itemized deduction for state and local income and property taxes to $10,000
Since the new tax law limits the deductibility of State and Local taxes in 2017, you should generally prepay some or all of your 2018 property taxes.
Read the Executive Order from Governor Cuomo allowing you to prepay your 2018 property taxes and deducting them in 2017 here.
For a detailed summary of the Tax Cuts and Job Act, you can read the Tax Briefing issued by CCH, Wolters Kluwer.
If you have any questions about prepaying your 2018 property taxes in 2017, or any other items in the new tax law, please contact your Castellano, Korenberg tax professional.