2021-2022 Tax Planning (Archive)
Click here to access our 2021-2022 Tax Planning Guide
And check out these articles for additional tax planning information and guidance:
When employing household workers — which may also include housekeepers, cooks, gardeners, health care workers and other employees — it’s important to understand the tax obligations, commonly referred to as “nanny taxes.” This article provides a quick review.
For Individuals - Overfunded 529 Plans
If money is held too long in a Section 529 college savings plan, there could be tax consequences. This article describes alternatives for savers who have overfunded their accounts.
For Individuals - Real Estate - Business or Investment
If you own rental real estate, its classification as a trade or business rather than an investment can have a big impact on your tax bill. The distinction is especially important because of the 20% Sec. 199A deduction for certain sole proprietors and pass-through entity owners. This article provides a brief overview of the deduction and rental real estate guidance related to it. A sidebar spotlights the IRS definition of “real estate professional” as it relates to this tax matter.
For Individuals - Retiree Tax Tips
There’s a common misconception that, after retirement, tax bills shrink, tax returns become simpler and tax planning is a thing of the past. That may be true for some, but many people find that the combination of Social Security, pensions and withdrawals from retirement accounts increases their income in retirement and may even push them into a higher tax bracket. This article provides five tax-planning tips for retirees.
For Individuals - Working Out-Of-State
During the COVID-19 pandemic, it’s been fairly common for people to work remotely from another state — across state lines from the employer’s place of business or even across the nation. Employees that fit that situation may need to file tax returns in both states, potentially triggering additional state taxes.
For Businesses - Business Meals
The TCJA permanently eliminated deductions for most business-related entertainment expenses paid or incurred after 2017. But it didn’t specifically address the meals, beverages and snacks that often accompany entertainment activities. Then the CAA temporarily increased the deduction for certain business-related meal expenses. Many business owners today aren’t sure what they can deduct or how much they can deduct. This article tells them what they need to know.
For Businesses - Cost Segregation Study
For businesses planning to buy, build or substantially improve real property, a cost segregation study can help accelerate depreciation deductions, reducing taxes and boosting cash flow. Lookback studies can also be done for prior years. This article explains how cost segregation studies work and how tax deductions are recovered.
For Businesses - Worker Classification
If a business engages independent contractors to address staffing needs, it needs to be careful that these workers are properly classified for federal tax purposes. This article reviews the general rules for distinguishing an independent contractor from an employee.