2022 Year-End Tax Planning for Businesses
As the year draws to a close, it’s important that we meet to discuss any year-end strategies that might help lower your business’s taxable income for 2022. The most significant tax law changes during the year took place in August when the 2022 Inflation Reduction Act (2022 IRA) was signed into law. While the new […]
2022 Year-End Tax Planning for Individuals
On August 16, President Biden signed the 2022 Inflation Reduction Act (IRA), a significantly scaled-back version of the Build Back Better Act. Two of the most favorable changes contained in the 2022 IRA that are beneficial for individuals are (1) a three-year extension of expanded Affordable Care Act health insurance subsidies, which were set to […]
IRS provisions and items adjusted for inflation 2023
The IRS announced inflation adjustments for tax year 2023. The items adjusted for annual inflation include tax rate schedules, the standard deduction, and more than 60 other provisions. Below is a summary list of commonly used provisions: The Standard Deduction. The standard deduction amounts for 2023 are: $27,700 for married couples filing jointly (up from […]
Estate Exemption Portability
The IRS issued a simplified procedure for certain estates to obtain an extension of time in which to to make a portability election under Code Sec. 2010(c)(5)(A), which allows a surviving spouse to use a decedent’s unused exclusion amount for subsequent transfers during life or at death. The procedure, which supersedes Rev. Proc. 2017-34, extends […]
Business Tax Preparation for 2021
Several significant tax law changes took effect in 2021 that may affect your business’s federal tax filings. As the year draws to a close, we should review these changes, as well as your business’s projected taxable income or loss to see what actions might be appropriate before year end to reduce taxes. It’s also important […]
Individual Tax Return Preparation for 2021
Due to the enactment of legislation to offset the economic burden wrought by COVID-19, there is a lot to consider when reviewing year-end tax planning options. Pandemic-related tax breaks include an expanded dependent care assistance, payroll tax credits for self-employed individuals, substantial increases in the child tax credit and the earned income tax credit, $1,400 […]
White House Releases Tax Proposals as Part of Fiscal Year 2022 Budget Plan
In late May, the Biden Administration released its proposed budget for fiscal year 2022. Proposals in the budget, which are described in the General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals (also known as the “Greenbook”), include (1) increasing taxes on high-income taxpayers and corporations; (2) ending the carried interest tax break; (3) repealing the […]
Updates to PPP Loans
At the end of 2020, Congress passed, and President Trump signed, a new law that provides for additional relief related to the coronavirus (COVID-19) pandemic. This law, the Consolidated Appropriations Act, 2021 (CAA, 2021), includes a second draw of Paycheck Protection Program (PPP) loans (PPP Second Draw Loans). It also allows businesses to deduct ordinary […]
Business Income Tax Planning Subjects for 2020
Depreciation Deductions Among the many changes made by the CARES Act, the one which may have the most impact is the correction of a technical error made in the Tax Cuts and Jobs Act of 2017 (TCJA). That error resulted in the 15-year recovery period that applied to qualified leasehold improvements, qualified restaurant property, and qualified […]
Individual Income Tax Planning Subjects for 2020
Effect of CARES Act Rebate on Your 2020 Tax Return Under the CARES Act, individuals with income under a certain level are entitled to a recovery rebate tax credit. These are direct payments (sometimes referred to as “stimulus checks”) to individuals by the government. Most, but not all, of these stimulus checks have already been sent out to […]
