Owner Resource Group is pleased to offer this valuable Year-End Tax Planning Advice from our friends at accounting firm Maxwell, Locke and Ritter.
Dear Clients and Friends:
Tax planning always rises to the forefront of our minds as we start winding down another year. The recent trend of legislative changes has continued in 2022, so we want to advise individuals and business owners to assess their current tax situation, based on current laws and regulations, and consider any steps that may be taken between now and year-end.
Let's take a moment to review the significant legislation enacted in recent years. Following the massive Tax Cuts and Jobs Act (TCJA) of 2017, the Coronavirus Aid, Relief, and Economic Security (CARES) Act addressed various pandemic-related issues in 2020. In quick succession, the Consolidated Appropriations Act (CAA) extended certain CARES Act provisions and modified others, while the American Rescue Plan Act (the ARPA) created even more tax-saving opportunities in 2021.
This series of new laws culminated in the Inflation Reduction Act (the IRA) passed in August of 2022. While less extensive than the initial Build Back Better proposals, the IRA, which is generally effective next year, still includes several tax-related provisions that could impact individuals and certain businesses.
As a reminder, more proposed legislation has been introduced in Congress. If another law featuring tax provisions is enacted before 2023, it may require revisions to any year-end tax planning strategies you already have in place.
Keeping all of this in mind, we have prepared the following 2022 Year-End Tax Planning Strategies:
Be aware that the concepts discussed in these articles are intended to provide only a general overview of year-end tax planning based on current federal tax law and are subject to change, including the possibility of new tax legislation between now and year-end. 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.