The bad news: the current personal exemptions will go away. Under current law, individuals received a $4,050 personal exemption (and married couples could claim $8,100) on top of their standard deduction. This means the new consolidated standard deduction is only a slight net increase, from $6,350 + $4,050 = $10,400 for individuals up to $12,000, and from $12,700 + $8,100 = $20,800 to $24,000 for married couples.
If you won’t have enough to itemize in 2018, you will want to consider accelerating expenses like gifts to charities, pre-pay property tax, and January’s mortgage payment into 2017. Also, defer any income that you can to 2018.
The even worse news: under the new rules home office expenses, moving expenses to relocate for a new job, casualty and gambling losses, unreimbursed business expenses, tax prep software, tax preparer, or investment advisory fees will no longer be deductible on Schedule A.
This means 2017 is the last year in which there will be an opportunity to receive a tax deduction for our advisory fees.
So, to help out, if you would like to prepay up to half of your 2018 Financial Planning Fee in the 2017 tax year in order to take advantage of this final deduction opportunity, we will accept a one-time prepayment. If you would like to do this please email email@example.com for the details.