President-elect Trump declared one of his top priorities to be passage of a “major tax bill lowering taxes in this country.”

November 23, 2016


Expecting tax cuts next year? President-elect Trump declared one of his top priorities to be passage of a “major tax bill lowering taxes in this country.” Affected taxpayers who believe that promise will kick in for 2017 should revisit their 2016 year-end tax plans as a way to maximize possible windfall savings next year. Example: Defer income (such as bonuses, or if you’re a cash-basis taxpayer, payments for services) to 2017 when the top tax rate may fall from 39.6% to 33%. Also, accelerating deductions into 2016 may yield tax savings. Consult your tax advisor.