Delaying Income and Advancing Deductions to Take Advantage of Expected Tax Reform

I think it's a good idea to look at the possible impacts of tax reform on our finances.

In my quick review,  I've concluded that I will lose out on deductions but gain on the increased child tax credit and lower tax rate.   Net, I will be slightly ahead and can manage our income stream better to minimize taxes.  In addition, our tax return will be significantly simpler, requiring far less time to do each year.

So for 2017, we will move forward all deduction, e.g. medical expenses, charitable contributions and property tax.   We will delay income such as IRA withdrawals until next year.    In addition, we will increase the amount of income from dividends, since I expect the 0% capital gains tax rate for those in the lowest tax bracket to be maintained.

Of course, YMMV since each individual's situation will be impacted differently by tax reform.

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This is not financial or tax advice. Please consult a professional advisor.

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