Tax changes for 2018

By Ken McEntee

Paying tax-deductible expenses by December 31 and delaying income beyond that date can result in lower taxes, suggests Gary Cerasi, CPA, owner of Creative Business Strategies.

With new tax laws taking effect in 2018, Gary suggests a financial review before the end of the year while there is still time to make adjustments to your tax situation.

Q: What should I do now to prepare for filing my 2018 personal or business taxes?
A: If possible, pay up expenses that may be deductible—such as medical bills—and delay receiving income until 2019. If you own a “flow-through” business, delay receipt of your accounts receivable until 2019 and maybe buy a piece of equipment or vehicle over 6,000 pounds. Prepay cash charitable contributions by December 31.

Q: Are there any tax changes from the 2017 tax year that will impact me, my family or my business?
A: Tax bracket limits have been lowered by about 10 percent from 2017 to 2018 across the board and the new rules favor self-employed and high-income earners. Changes include the elimination of deductions for dependents in favor of a larger standard deduction up to $24,000 for married couples and $12,000 for singles. Child credits have been doubled to $2,000 per child under 17. The miscellaneous deduction for un-reimbursed business expenses has been eliminated for W2 employees. You can no longer deduct the interest on home equity loans unless you can prove the proceeds of the loan improved your home.

Q: What’s the best way to ensure that I owe as little tax as possible or get the biggest refund?
A: A CPA who understands tax law can run projections before the end of the year while there is still time to change your tax situation.

You can learn more about lowering your taxes by scheduling a no-cost consultation with Gary, at 440-546-9359. Creative Business Strategies is located at 192 East Wallings Road, in Broadview Heights. You can find more information at CreativeBizStrat.com.