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NE Iowa | Not sure where to post this - hope this forum is ok.
Using some of this harvest interruption to take a look at 2018 taxes and how it impacts my selling/spending activity for the next 7 weeks.
Other than the tax tables themselves getting changed, here is what I am picking up as major changes to deduction/exemptions:
Married filing jointly standard deduction goes from $12700 (2017) to $24000 (2018).
Exemptions go from $4050/person to $0/person.
SALT (State/Local income and property tax exemptions) deductions (on the Itemized deduction form) go from unlimited to a $10000 limit.
Without getting too specific about my prior year tax returns (I'm not running for office, so no need to release them to the public), it looks to me like the new Fed tax code will cause me to play some games between 2018 & 2019. For my entire married life, we have itemized our deductions - mostly due to significant charitable giving and me having on off-farm job in a relatively high income tax state. Our itemized deductions always far exceeded the standard deduction.
For 2018, however, it appears that our itemized deduction will be pretty close to the standard deduction. So what I am thinking about doing is doing all/most of my intended 2019 charitable giving in Dec 2018 which will increase my itemized deduction for 2018. Then the plan would be to take the standard deduction in 2019.
For those of you much better versed in the tax code than me, does this make sense? I will be running this by my tax guy, but just thought I'd tap into the knowledge here first.
Thanks,
Chris | |
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2018 Fed Taxes
