2020 Year-End Tax Planning

By Will Burnett November 17, 2020 Tax Planning

Owner Resource Group is pleased to offer this valuable Year-End Tax Planning Advice from our friends at accounting firm Maxwell, Locke and Ritter. Hopefully, these tips will help prepare you and your business for success as we all continue to navigate the tax implications resulting from the COVID-19 pandemic, the CARES Act and the recent election.

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Dear Clients and Friends:

This year has been unlike any other in recent memory. Front and center, the COVID-19 pandemic has touched virtually every aspect of daily living and business activity in 2020. In addition to other financial consequences, the resulting fallout is likely to impact year-end tax planning for both individuals and businesses.

In response to the pandemic, Congress authorized economic stimulus payments and favorable business loans as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act also features key changes relating to income and payroll taxes. This new law follows close on the heels of the massive Tax Cuts and Jobs Act (TCJA) of 2017. The TCJA revised whole sections of the tax code and includes notable provisions for both individuals and businesses.

Furthermore, while election day is behind us, the final outcome of some elections is yet to be decided and may affect tax planning for the rest of the year and beyond.

With all of this in mind, we have prepared the following 2020 Year-End Tax Letter. For your convenience, the letter is divided into three sections:

Tax Planning for Individuals
Tax Planning for Business Owners
Tax Planning for Investors and Estate/Gift Planning

Be aware that the concepts discussed in this letter are intended to provide only a general overview of year-end tax planning based on current federal tax law and are subject to change, especially in light of the changing political landscape, so we recommend that you review your personal situation with a tax professional. Please contact ML&R 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.

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