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 navigate the continuing effects of the COVID-19 pandemic as well as new and proposed legislation that could impact your tax planning strategies.
Dear Clients and Friends:
2021 has been another unpredictable and memorable year – we’ve seen last February’s winter storms and other weather events, a new administration in Washington D.C., and the continued effects from the COVID-19 pandemic. These events and the resulting outcomes have also complicated tax planning for individuals and small business owners.
What’s more, new legislation enacted during the last couple of years has had, and will continue to have, a significant impact. First, the Coronavirus Aid, Relief, and Economic Security (CARES) Act addressed numerous issues affected by the pandemic. Following soon after, the Consolidated Appropriations Act (CAA) extended certain provisions and modified others. Finally, the American Rescue Plan Act (ARPA) opened up even more tax-saving opportunities in 2021.
And we still might not be done. New proposed legislation, the Build Back Better (BBB) Act, is currently being debated in Congress. If another new law is enacted before 2022, it may impact any year-end tax planning strategies.
Keeping all of this in mind, we have prepared our 2021 Year-End Tax Letter. For your convenience, the letter is divided into three sections:
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 potential for new tax legislation between now and year end, so we recommend that you review your personal situation with a tax professional. Please contact us 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.