Owner Resource Group is pleased to offer valuable Year-End Tax Planning Advice from our friends at accounting firm Maxwell, Locke and Ritter. Hopefully these tips will help set you and your business up for success as we all continue to navigate changes from the Tax Cuts and Jobs Act (TCJA) of 2017.
2019 YEAR-END TAX PLANNING LETTER
Dear Clients and Friends:
Year-end tax planning in 2019 remains as complicated as ever. Notably, many are still coping with the massive changes included in the biggest piece of new tax legislation in decades—the Tax Cuts and Jobs Act (TCJA) of 2017—and determining the most favorable strategies. This monumental tax legislation includes a myriad of provisions affecting a wide range of individual and business taxpayers.
Among other key changes for individuals, the TCJA reduced tax rates, suspended personal exemptions, increased the standard deduction and revamped the rules for itemized deductions. Generally, the provisions affecting individuals went into effect in 2018, but are scheduled to “sunset” after 2025. This provides a limited window of opportunity in some cases.
The impact on businesses was just as significant. For starters, the TCJA imposed a flat 21% tax rate on corporations, doubled the maximum Section 179 “expensing” allowance, limited business interest deductions and repealed write-offs for entertainment expenses. In addition, the TCJA made extensive changes affecting international taxpayers which are outside the scope of our resources below but could play an important role in any year-end planning decisions. Unlike the changes for individuals, most of these business provisions are permanent, but could be revised if Congress acts again.
Keeping all that in mind, we have prepared our 2019 year-end tax planning tips as 3 separate resources:
- Tax Planning for Individuals
- Tax Planning for Business Owners
- Tax Planning for Investors and Gift/Estate Planning
Be aware that the concepts discussed are intended to provide only a general overview of year-end tax planning and are subject to change, especially if additional tax legislation is enacted by Congress before the end of the year, so we recommend that you review your personal situation with a tax professional. Please contact MLR if you are a client of the firm and would like to schedule a meeting so that we can assist with your tax planning needs.