New York Daily News

YEAR-END TAX TIPS

- BY DENIS SLATTERY

THE GOP TAX plan that President Trump signed into law Friday lays out major changes to just about every facet of the nation’s tax code in the coming years. The law takes effect Jan.1, but there are steps that many taxpayers can take before New Year’s Day to make the most of the remaining days of 2017:

PROPERTY TAX

Gov. Cuomo on Friday signed an emergency order that might help homeowners ease the burden imposed by the tax plan reducing federal deductions for state and local taxes. The order allows New Yorkers to pay at least some of their 2018 property taxes before the start of the new year, giving homeowners one last chance to take full advantage of the federal deduction for state and local taxes. The new tax law limits the so-called SALT deduction to $10,000.

INCOME

Starting Jan. 1, many taxpayers will find themselves in a lower tax bracket under the new law. For example, a middle class married couple making a combined $80,000 will be in a 22% tax bracket next year, compared with 25% under the current law. For those taxpayers receiving year-end bonuses it could be beneficial to ask for a deferment until 2018. Contractor­s could ask clients to pay outstandin­g bills after Jan. 1. Small business owners can also consider pushing their own income payouts into the new year.

CHARITY

The deduction for charitable contributi­ons stays the same, but with standard deductions doubling, itemizing will no longer pay off for many taxpayers, who are better off beefing up donations before the end of this year to help reduce 2017 income, while rates are higher.

MEDICAL COSTS

Those with high medical costs have a little bit of leeway, as the new law allows people whose unreimburs­ed medical expenses exceed 7.5% of their adjusted gross income to claim a deduction for those expenses in 2017 and 2018. Then it is scheduled to revert to 10%.

DIVORCE

The tax bill could also lead to an uptick in divorces in 2018. If taxpayers are thinking about splitting up, they should do so within the next year before the tax bill scraps a 75-year-old tax deduction for alimony payments. The new rules won’t affect anyone who divorces or signs a separation agreement before 2019. In any divorce after Dec. 31, 2018, the spouse paying alimony can’t deduct it, and the spouse receiving the money no longer has to pay taxes on it.

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