On December 22, 2017, the President signed the law H.R.1, known as the Tax Cuts and Jobs Act (the Act), which makes significant changes to the Internal Revenue Code.

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Here are Three Actions for individuals to consider by December 31, 2017 to increase the tax savings:

Tip 1: Real Estate Tax 

• If you do not have an escrow account with your mortgage company, it is a good idea to prepay your residential (primary, second, third homes and nonrental) real estate taxes by December 31, 2017. It is normally due in Spring/Summer 2018;
• Do not prepay real estate taxes on your rental properties. This change does not affect real estate taxes on rental properties.

Tip 2: State and Local Taxes

• In 2018, the combined deduction for residential property taxes (other than rental) and state and local income taxes is limited to $10,000;
• Pay your state estimated quarterly income taxes by December 31, 2017. It is normally due January 15, 2018;
• You may also pay by December 31, 2017 your state income taxes, you expect to owe for 2017 that are due April 16, 2018.

Tip 3: Mortgage Interest

• It is a good idea to make your January residential mortgage payment (other than rental) by December 31, 2017 to get an extra interest deduction in 2017.