12/26/2017
JANUARY SAVING AND URGENT INFORMATION:
JANUARY SAVINGS: Anyone who sees me at my office (or works with me by phone and email) in January 2018 and mentions this JANUARY SAVINGS post at our initial phone conversation to set up an appointment will get 50 percent off my regular flat fee price for: wills, uncontested divorces, and/or drafting a Separation Agreement.
URGENT INFORMATION: (1) BEFORE DECEMBER 31, 2017, look at your taxes from last year. If you paid more than $10,000 combined for your state property taxes, state and local income taxes, then starting with your 2018 taxes you will only be able to deduct a maximum of $10,000 regardless of how much you paid in those combined taxes. There is a one-time opportunity (with a few minor exceptions for people who pay the Alternative Minimum Tax) to pay your January 2018 estimated tax payment on your 2017 taxes in December of 2017 so that you will not lose part or all of that final 2017 payment to the new law. Consult your tax advisor or read up further on this NOW. On January 1, 2018 it will be too late.
(2) If you're separated or divorced and paying alimony, you are now able to deduct those payments to your ex-spouse, and your ex has been paying income taxes on those payments. If you're already divorced, that will remain the case and Uncle Sam “helps” with the payment because the payer and payee are in two different tax brackets and alimony is getting taxed at the lower rate. The new tax law, however, will affect couples who divorce or separate and sign a Separation Agreement after Dec. 31, 2018 -- after that date alimony payments will NOT be deductible. Recipients also won't be taxed on the payments. If you are separated and do not yet have a Separation Agreement addressing the issue of alimony, the Agreement (or court order) must be done and signed this year (2017) or next (2018) in order for the alimony to be considered deductible/taxable. CALL ME FOR AN APPOINTMENT if you wish to do a Separation Agreement so that you can take advantage of the deductibility of alimony before it is too late.
