The Financial Management Blog for Surprise, Arizona
The Tax Cuts and Jobs Act (TCJA) was the largest change to the tax system in over 3 decades. The new tax code contains many provisions that will affect individual, estate, and corporate taxpayers, including hard-working physicians like yourself. Although the new tax law closes many loopholes, there are still tax breaks and strategies that offer ways for physicians to reduce their taxable income. Below we have highlighted 6 tax strategies physicians should consider for 2018.
- Bunching Charitable Donations
While the new tax reform does not eliminate charitable deductions, it does
A proposed amendment released by the U.S. Treasury Department and IRS on August 23rd could limit charitable donations and state tax credits. Previous charitable donations that qualified for an Arizona dollar for dollar tax credit would receive a state tax credit and a federal charitable deduction. The new proposed rule change states that donations to tax credit organizations will no longer be deductible on federal returns. This proposed rule will be set to apply to contributions made after August 27th – You might consider making your charitable donations now. Any donation made thereafter will still qualify for the Arizona tax credit but will no longer receive a federal charitable deduction. We will provide further updates as they become available.
Contact us to discuss how this ruling may affect your individual tax situation.
Will You Really Be Able to Work Longer?
You may assume you will. That assumption could be a retirement planning risk.
Will You Be Prepared When the Market Cools Off?
Markets have cycles, and at some point, the major indices will descend.