The clock is ticking down to 2018 ... but you still have a few weeks
left to make some last-minute tax moves. Take a look at these five tips and
save a little more this year.
- Check
the amount of 2017 tax you have prepaid through withholding and quarterly
estimates ASAP. If you've underpaid, consider
increasing your withholding before year-end. Withholding is considered to
have been paid evenly throughout the year. This is to help prevent you
being charged underpayment penalties for 2017.
- Make
sure you have the correct tax status. If you got
married or divorced this year, be aware that your marital status as of
Dec. 31 determines your tax status for the whole year. If you are in the
process of a marital status change, know that altering the dates of a
year-end event to the new year may affect your taxes.
- Plan for losses.
Check your basis in any S corporation in which you are a shareholder and
where you expect a loss this year. Be sure you have sufficient basis to
enable you to take the loss on your tax return.
- Use this year's annual gift tax
exclusion. If you make annual gifts to
family members or others, make sure you complete your gifts for 2017 by
Dec. 31.
- Consider equipment purchases before
Dec. 31. Taxpayers must usually deduct the
cost of business property over several years. The Section 179 election
allows taxpayers to expense up to $510,000 of new and used property purchased
and put into service in 2017. Property such as machinery, equipment and
furnishings usually qualify. Be careful with special rules that apply to vehicles
and personal computers.
