Year-end Tax Planning
With the year coming to a close, now is an important time to be thinking about ways to save on taxes for 2020 and possibly 2021. Year-end tax planning and projections are especially valuable this year as new guidance was released on the Tax Cuts and Jobs Act (TCJA) as well as the Families First Coronavirus Response Act and the Coronavirus Aide, Relief and Economic Security (CARES) Act having an effect on the TCJA.
Many of the decisions made during the year can have a major impact on tax returns. Making financial considerations for the following may help lower your tax bill:
Selling stock or property
Charitable donations of stock and other property
Gifts of money or property to children (or others!)
Accelerating deductions and deferring income
Net operating losses
Bonus depreciation and cost segregation studies
Tax implications of withdrawing from an IRA, profit-sharing or other retirement plans
Planning regarding the Code Sec.199A qualified business income deduction
Year-end tax planning and projecting are great aspects of your tax strategy to help avoid most unexpected taxes or a high tax bill. We are available for tax consulting and advising, and especially now for your tax planning, projections and year-end needs. We are more than happy to review your particular situation to develop a tax plan suited to your needs and goals. Please feel free to contact us for an appointment to discuss these issues further or to discuss any other tax questions and/or concerns you may have.