As you know, on December 22, 2017, President Trump signed into law sweeping tax legislation.
A provision in the new law directly impacts the deductibility of our tax preparation fees and other costs that traditionally were deductible by individuals and trusts as “miscellaneous itemized deductions.”
Pursuant to that new law, only tax preparation fees, fees paid to attorneys for tax advice, investment advisory fees, and other miscellaneous itemized deductions paid by December 31, 2017 for costs incurred on or before December 31, 2017, are allowed to be deducted as miscellaneous itemized deductions.
Further, miscellaneous itemized deductions are disallowed for the calculation of alternative minimum tax (AMT), and may be subject to other limitations in the calculation of income tax. Now that such pre-2018 costs paid during 2018, or thereafter, are not tax deductible at all, you may want to consider paying such costs on or before December 29, 2017 (since December 30 and 31 are Saturday and Sunday) in order to still be able to claim a deduction for such fees.
Also, the real estate tax deduction will be limited to $10,000 per year. If your real estate taxes are in excess of $10,000, make sure they are paid before year end.
If you have any questions regarding how these changes impact your particular situation, please do not hesitate to contact us.