Withum, a Prime 25 Agency, has launched its annual 12 months-Finish Tax Planning Information, together with a Useful resource Heart with articles and checklists that taxpayers and tax professionals can use to organize for the brand new 12 months.
Withum’s 12 months-Finish Tax Planning Information explains federal, state, native, and worldwide tax points and compliance issues, together with CARES Act highlights, switch pricing methods, charitable contribution methods, R&D tax credit and wealth administration.
The information additionally contains among the high planning concerns for a number of particular industries.
“We’ve seen an amazing uptick in enterprise exercise this 12 months, and [our] year-end tax planning information will likely be significantly essential for taxpayers to handle each new and pending laws,” mentioned Daniel Mayo, nationwide lead of federal tax coverage at Withum, in a press release. “Taxpayers want to regulate their tax planning to account for brand new tax provisions in addition to for expiring tax provisions regarding the CARES Act.”
Withum constructing in Princeton, N.J.
Courtesy of WithumSmith+Brown
The information recommends that particular person taxpayers postpone their revenue if they’ll till 2022 and speed up deductions into 2021. “Doing so might allow you to assert bigger deductions, credit, and different tax breaks for 2021 which can be phased out over various ranges of adjusted gross revenue,” mentioned the information. “Married {couples} with kids who’ve an AGI round $150,000 might need to contemplate methods to decrease their AGI to benefit from the expanded youngster tax credit score, dependent care credit score, and any missed restoration rebate credit.”
Suspending revenue can be useful for taxpayers who anticipate to be in a decrease tax bracket subsequent 12 months attributable to modified monetary circumstances as a result of the Construct Again Higher Act that the Biden administration is attempting to go within the Senate would impose a brand new 5% surtax on households with AGI above $10 million and an extra 3% tax (for a mixed 8%) on these with AGI above $25 million. “If enacted, excessive web price people ought to contemplate accelerating revenue into 2021, and deferring deductions into 2022, to keep away from these greater charges,” mentioned the information.