It is more important than ever to get a head start on year-end tax planning. To assist with the process, Price Kong has released a 2020 Year-End Tax Planning Guide.
Year-end tax planning is always challenging, but the coronavirus pandemic has added a whole new layer of complexity to the equation. With the pandemic affecting the finances of almost every individual, family, and business in the country, the potential tax ramifications are significant. For example, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed in the spring to help blunt the financial impact of the pandemic on individuals and businesses, includes several key tax provisions.
In addition, the Setting Every Community Up for Retirement Enhancement (SECURE) Act that was passed at the end of 2019 introduced changes to retirement plans that could affect tax planning. Likewise, the provisions of the Tax Cuts and Jobs Act (TCJA) passed at the end of 2017 continue to impact tax planning for individuals, families, and businesses. In addition to reductions to corporate and individual tax rates and changes to personal ex-emptions and standard deductions, a new 20% of qualified business income deduction, Section 199A, has been added. All of these considerations put a new emphasis on understanding your current and projected tax situation.
We urge you to obtain professional advice before acting on any of the suggestions provided in this guide. Contact us at 602.776.6300 or [email protected].