Managing Deductible Expenses

As the end of the year approaches it is a good time to think of planning strategies that may help lower your tax bill for this year and possibly the next. We will post different planning items over the upcoming weeks. Not all of the items are applicable to every taxpayer and some of these items have an unknown affect due to the political climate and pending tax reform.

If you have historically itemized your deductions on Schedule A, consider using a credit card to pay deductible expenses before the end of the year. Doing so will potentially increase your 2017 deductions even if you don't pay your credit card bill until after the end of the year. If you put it on a credit card in 2017 it is a 2017 deduction.

Making charitable contributions; paying medical expenses; or payments of state, local, and property taxes are all common deductible expenses. There are limits in which these deductions can be taken, so just because you put it on a credit card may not mean you met the limit to deduct it.