Tax tips that keep more money in your pocket
President Donald Trump signed the Republican Tax Cuts and Jobs Act into law Friday keeping his promise of providing Americans with a tax bill by Christmas.
"It's going to be a tremendous thing for the American people. It's going to be fantastic for the economy. It's going to keep companies from leaving our shores," Trump said as he signed the bill in the Oval Office. "I consider this very much a bill for the middle class, a bill for jobs."
Now that the GOP tax bill has been signed into law, individuals and businesses are immediately trying to figure out how to take advantage of the new system.
In an interview with FOX Business’ Liz Claman, Marcum Tax and Business Services leader Joseph Perry said that many of his clients have called in search for loopholes within the tax code to maximize their savings.
“Now with media and information being instantaneous, everybody is asking questions, so we are getting many of our clients calling us,” he said.
Perry outlined three tips individuals should consider to keep the most money in their pockets under the new GOP tax reform plan:
- Pay 2017 state income tax if not in Alternative Minimum Tax (AMT)
- Prepay real estate taxes
- Consider paying off home equity line
The new tax plan has sparked domestic investments among U.S. businesses with some companies, like AT&T (NYSE:T), providing bonuses while others await the market to fully price before raising wages.
Perry said the GOP tax plan is making many of his business clients reconsider how they do business overseas and some are thinking bringing back their investments to the U.S.
“One of my clients that had a lot of money offshore actually said, ‘Joe, there’s no place better to invest than in the United States,’" he said.
Here are three tax tips for businesses should consider for getting the most out of the new tax reform plan, according to Perry:
- Pay bonus this year
- Look to accelerate deductions this year
- Take advantage of the 100% expensing provisions for property