As the house and senate vote on the new tax law, here’s the latest tax briefing reflecting the provisions of the conference report. We will keep you up-to-date when there is more information available. Please click here to view the new agreed upon provisions: Tax Briefing by Wolters Kluwer
Although the final version of the new tax law has not been passed, we know the conference report has the provision that the nonbusiness deduction for state and local taxes (SALT), including sales tax, will be limited to $10,000 (married filing joint and $5,000 married filing separately) next year. There is also uncertainty as to the tax changes the states may make in 2018.
Therefore, please consider prepaying your 2017 state taxes and real property taxes before the end of the year. This would include state income taxes you would owe in April and real property taxes on your principal residence and vacation home that are due. The proposed bill has a provision that you cannot deduct prepaid 2018 state and local income taxes and real property taxes not assessed in 2017.