Last Minute Actions for the New Tax Law

December 20, 2017

As these words are being written, it appears all but certain that we’ll have a new tax law with some rather drastic changes taking effect in 2018. We’ve reviewed the law for issues that may require attention in the last few days of 2017, and came up with the following four items:

Itemized Deduction for State and Local Taxes
Some people will benefit by paying in 2017 tax they would otherwise pay in 2018, but there’s a catch.

Roth Recharacterization Repealed
If you want to undo a Roth conversion you did earlier in 2017, it appears you’ll have to do this before the end of the year.

Loss on IRA Liquidation
In rare circumstances it can make sense to liquidate an IRA when your basis in the IRA exceeds the value of the assets. The opportunity to make this move disappears December 31, 2017.

Alimony Deduction Repealed
If you’re close to completing a divorce settlement agreement, the tax consequences may be more favorable if you close the deal before the end of 2017.

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