Tax planning can be complicated. During a crisis and political change, it can be even more complex. How do you do tax planning with a business when so much is still uncertain? The answer is: very carefully.
We know the current situation, and we know we could be seeing changes such as the following:
- Individual income tax rates going up to almost 40%
- Capital gains rates to over 40%
- Corporate tax rates to 28%
- Elimination of step up in basis
- Partial elimination of QBID
- Elimination of S/E cap of $137,700
- 1031 elimination where the profits exceed $500,000
- Child tax credits
- Repatriation of profits
- Energy tax incentives
- Itemized deductions
- GILTI
- Healthcare
Any or all of these items could be retroactive to 1/1/2021. And who knows what else.
We are here for you if you’d like to sit down with us and look at what to do in various situations such as:
2021 – before CARES II and tax law changes
2021 – after CARES II and tax law changes
2021-The American Jobs Plan (Proposed)
2021-The American Family Plan (proposed)
2022 -After