Tax Planning For Crisis & Political Change - Palma Financial

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
  • 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

So if you’re ready to set up an action plan, go here