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Individuals Scrambling Before New Tax Law Goes Into Effect

With tax reform officially in the books, there are a lot of questions for the average taxpayer.
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Individuals Scrambling Before New Tax Law Goes Into Effect

With tax reform officially in the books, there are a lot of questions for the average taxpayer. And there's a pretty big scramble to take advantage of the old system before the new one starts.

For example, homeowners are rushing out to pay their 2018 property taxes before 2017 is over. The new tax law puts a cap on the amount people can deduct for state and local taxes at $10,000 — it's a change that could cost some people thousands of dollars. By prepaying next year's property taxes, homeowners can deduct them from their 2017 federal returns.

Charitable donations are also expected to drop next year because the new tax rules lower some incentives to give, with standard deductions for most increasing.

According to Fortune, that could prevent many people from itemizing their deductions and make it less financially beneficial to give to charity in 2018. So experts suggest making a donation or two before the ball drops Dec. 31 while those incentives are still in place.

So, it might be worth making a call to your accountant before you ring in the new year.