Tax Planning to Counter the Possible Tax Reform Impact-revised

Why do we think early tax planning is appropriate this year? Many people wonder " how will Trump's tax plan affect me?". (Read my post on Trump reform plan). One of the biggest changes for individual tax is itemized deductions. Under the proposal, standard deduction will increase while most of the itemized deductions will be eliminated or significantly limited.This could be a big hit for many taxpayers, especially people living in California, New York. People in San francisco bay area most likely pay significant amount of state income taxes, property taxes and high mortgage interest. State and local taxes deduction will be completed eliminated and property tax and mortgage interest will be limited. In an other words, for many people, some items deductible in 2017 might not be deductible in 2018 if the bill passes.