Dear Clients and Friends,
With the end of the year approaching, it is a good time to review your 2020 income tax situation and take steps to ensure that you are taking full advantage of the many tax planning strategies available.
Before we get to specific suggestions, keep in mind effective tax planning requires considering both this year and next year, at a minimum. Without a multi-year outlook, you cannot be sure planning strategies intended to save taxes on your 2020 return will not backfire and cost additional money in the future.
As of the writing of this letter, Joe Biden is projected to be the next president, Democrats will control the House, and control of the Senate will depend on the outcome of two Georgia runoff elections in January. The ability of President-Elect Biden to implement his tax plan will depend heavily on the outcome of those two runoffs. At a high level, President-Elect Biden’s tax plan aims to increase tax credits for lower and middle-income individuals, increase taxes on individuals with income in excess of $400,000, reduce the estate tax exemption, increase the estate tax rate, and increase the corporate tax rate.
Download our Year-End Tax Planning Letter for a few tax-saving ideas for you to consider. As always, you can call on us to help you sort through the options and implement strategies that make sense for you.