The new tax law keeps the medical deduction intact and even improves it slightly. If you are able to itemize, medical deductions in excess of 7.5% of your adjusted gross income (AGI) are deductible (as opposed to the current 10% of AGI).
The new tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%. These are lower than the tax brackets for 2017. Therefore, if possible, defer income until 2018.
The new law substantially increases the alternative minimum tax (AMT) exemption amount, beginning next year. If you hold incentive stock options (ISOs), it may be wise to postpone exercising them until next year.
“Like-kind exchanges” are a popular way to avoid current tax on the appreciation of an asset. However, after December 31, 2017, such swaps will be possible only if they involve real estate that isn’t held primarily for sale. If you are considering a like-kind swap of other types of property, do so before year-end.