Still, while doing so could result in a bigger SALT deduction, it could also trigger the alternative minimum tax (since the purpose of the tax is to ensure all taxpayers face a minimum amount of tax), so proceed with caution.
Crypto Sales
Until now, cryptocurrency owners have enjoyed an advantage over stock investors. Crypto isn't subject to the wash/sale rule, which prohibits stock investors from taking a deduction for a loss if they repurchase the same or a similar security within 30 days. That has meant a crypto owner could sell unrealized losses by the end of the year, to offset some gains, and then buy the same crypto back a few days later in the new year.
Not so much anymore. The House bill added digital assets to the list of securities affected by the wash/sale rule and applied the change to dispositions made after Dec. 31. It's unclear how the Treasury Department and the IRS will define "similar" securities for digital coins though, so stay tuned.
Business Bunching
Many business owners haven't had to worry about the 3.8% tax on investment income that applies to everyone else who earns more than $200,000 (or $250,000 for those married filing jointly). That gift had been courtesy of an exemption for those whose income is derived from actively being involved in a business.
But the House legislation says business owners who don't pay self-employment taxes and make more than $400,000 (or $500,000 for those married and filing jointly) will now be subject to the 3.8% tax, full stop.
Before it takes effect on Jan. 1, business owners should figure out if there are ways to get below those income thresholds. Those close to the limit may want to think about upping contributions to retirement plans or donating to charity to reduce their taxable income.
Alexis Leondis is a Bloomberg Opinion columnist covering personal finance. Previously, she oversaw tax coverage for Bloomberg News.