The House and Senate each have passed a version of the Tax Cuts and Jobs Act. Both the House bill and the Senate bill eliminate the deduction for state and local income taxes after December 31, 2017.

In light of this, it may be advantageous for some individual taxpayers to pay their 2017 state and local income taxes (otherwise due on January 15 or April 15, 2018) before the end of 2017. For others—such as those subject to the alternative minimum tax—there may be no advantage.

In addition, it is not certain that the state and local income tax deduction will be eliminated. Accordingly, we recommend that individual taxpayers consult with their accountants promptly to determine whether or not they should pay their 2017 state and local income taxes in December.

We will continue to monitor the Tax Cuts and Jobs Act as the House and Senate begin to reconcile their versions of the bill.

If you would like to discuss the Tax Cuts and Jobs Act, please contact a member of our Family Wealth Management Group.

Ballard Spahr attorneys across practice areas are monitoring legislative developments and tracking the potential influence of the bill on your interests. Please visit our Tax Reform Alert Center for the latest details, including a significantly more detailed discussion and analysis of nearly all provisions of the bills.


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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.





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