As we look at the end of 2017 there are still a couple of things you can do to improve your 2017 tax situation. These are tried and true strategies:
- Business owners, if you are planning to buy some machinery or equipment early in 2018, consider buying it even earlier, before the end of 2017 so that you claim the half rate tax depreciation in 2017, not 2018.
- Individuals should take a look at their medical expenses and decide if they should buy glasses or get dental work done. Remember that once you exceed the threshold for medical expenses any other money spent will create a tax credit.
- If you are planning to deduct charitable donations they need to be made by the end of 2017
2017 may be the last year that you can pay dividends to family members who are “not active in the business” without them paying tax at the highest rate. As I and everyone else has said repeatedly, we still don’t know the actual rules so our planning is not complete. Keep your eyes open for announcements from the federal finance department.
There are still a few weeks left in 2017, so if there was something you were going to do this year….the time is now.