By Jill Nagy
Despite uncertainty about the fate of the U.S. tax code, advice from accountants for year-end tax planning remains similar to what it has always been: Try to accelerate expenses and delay receipts.
If anything, the prospect of possible reductions in tax rates and the elimination of some tax deductions, gives greater credence to that advice.
“There are a lot of unknowns,” said James E. Amell, a CPA in the Queensbury office of Marvin & Co. He expects corporate tax rates to come down but predicts that the Republicans in Congress will not make radical changes.
“They want some durability in what they do,” he said. “They don’t want to see everything changed again when the control of Congress changes.”
Robert Ricciardelli, a CPA and partner at Whittemore, Dowen & Ricciardelli, also in Queensbury, agreed. “It looks like something is going to get done,” he said. “It is tough to plan.”
Defer income, he advised, “even more so than usual.”
Deferring income until 2018 also defers the taxes on that income, possibly into a year when rates are lower. “Hold off on some of you billing,” Amell said.