Your FP/CM Newsletter – 3Q17
YEAR-END 2017 INCOME TAX PLANNING
VINCE MARSDEN, Partner, SVP of Financial Planning
Now that summer is over, it is time to think about possible year-end 2017 tax saving strategies.
Republicans have announced a framework proposal for tax reform, which includes a reduction in the number of individual income rates from seven brackets to three of 12%, 25% and 35%, as well as the adjustment/elimination of certain tax deductions and tax credits.
In addition, they propose the elimination of the Alternative Minimum Tax, as well as Estate & Transfer Taxes. Corporate taxes would decrease from 35% to 20%, and taxes on pass-through entities would be at 25% rather than the current maximum of 39.6%. However, the final reform bill will almost certainly differ from the current proposal and it is questionable whether passage would take place in 2017.
In addition, even if a tax bill is passed in 2017, it could be enacted prospectively, taking effect 01/01/2018 rather than being retroactive to the start of 2017.
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