UofL athletics will take another hit with the passage of this lobbyist written tax bill. The 80% deduction for athletic dept donations will no longer be valid. This couldn’t have come at a worse time for UofL basketball. People on the fence due to scandal fatigue will have another reason to not purchase tickets. Perhaps all the large corporations that are saving on taxes will buy up a few more tickets (and then give them to UK fans).
Tax Bill And UofL
- Thread starter Knucklehank1
- Start date
If you itemize, time to prepay your state income and property taxes and charitable donations...
Good move. You generally benefit from doing so whether you itemize or not.
I'm not a CPA, so I'm not giving anyone tax advice. But I do my own taxes with tax prep software. On Sch A, you get a deduction for state income tax paid during the calendar year.
There's no explicit deduction for tax year--it simply shows up as "state estimates" paid during the calendar year. In effect, I'm overestimating taxes due for 2017 and rolling the surplus as a credit toward 2018 taxes due. If the IRS disallows that type of deduction, you'll have to point to it on the federal tax instructions.
This is consistent BTW with occasionally overpaying your state income taxes, getting a full deduction in the year paid, and then declaring the refund as income in the year it's received. The difference here is I'm not selecting the option to receive a check for that refund. I'm applying it to 2018 taxes due which the State of Indiana allows. No refund check...
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Interesting link. I've also heard that if you don't make estimated (quarterly) payments, you can't capitalize on the deduction.
It's not a huge deal either way. All you're doing is prepaying money you'll owe in the next 12 months anyway. We'll see how all of this rhetoric shakes out when the new instructions and software are published. Right now, it's worth a shot if you have the available funds...
It's not a huge deal either way. All you're doing is prepaying money you'll owe in the next 12 months anyway. We'll see how all of this rhetoric shakes out when the new instructions and software are published. Right now, it's worth a shot if you have the available funds...
I need to keep an eye on this. I don't do quarterlies. Haven't since I became a 1099 in '08. Every year my accountant lectures me. But, whatever. I extend until 10/15, then pay a penalty in early December, which seems to increase every year. I have no idea what impact new tax plan will have on my situation. Fingers crossed it all works out.
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