2020-2021 Tax Planning Guide

We hope you and your family are doing well and staying healthy during these unprecedented times.  With 2020 rapidly coming to a close soon (thankfully!), we are once again reaching out to share our annual Tax Planning Guide with you.  The 2020/2021 Tax Planning Guide is available here.

The massive changes brought to us in the Tax Cuts and Jobs Act (TCJA) will continue to affect 2020 and future tax years until 2025 and will continue to have a significant impact on tax planning, along with the new CARES Act and of course the PPP loans and forgiveness.

• Tax rates will stay consistent with 2019, with small increases to the taxable income brackets.

• The standard deductions have slightly increased again.

• […]

By |December 8th, 2020|Categories: BCo Community News|Comments Off on 2020-2021 Tax Planning Guide

YEAR-END TAX PLANNING UNDER A BIDEN PRESIDENCY

Although vote counting continues and legal challenges to the election endure, many news media organizations have projected that former Vice President Joe Biden will become the 46th President of the United States on January 20, 2021.

The House of Representatives will remain under Democratic control, but control of the Senate is somewhat less certain since the balance of power will be determined in January 2021 following a run-off election for two open Senate seats in Georgia. The run-off is necessary because neither of the candidates in either of the races obtained more than 50% of the total vote count as required by the state’s election law. A win by the two Democratic candidates would shift the balance of power in the Senate from one of GOP control […]

By |December 8th, 2020|Categories: Announcements, BCo Community News|Comments Off on YEAR-END TAX PLANNING UNDER A BIDEN PRESIDENCY

Tax breaks for families with the Secure Act:

The new secure act has some tax benefits for families who have children with student loan debt and for growing families. It would allow 529 accounts to qualify for student loan repayment of $10,000 a year. If parents have funds remaining in educational savings loans accounts they can now help their graduated child by paying up to $10,000 a year in their student loan debt. Also the new law would allow for a penalty-free withdrawal of up to $5,000 for your 401(k) to help with the cost of having a child or adopting a child.  For more information click here.

By |January 15th, 2020|Categories: BCo Community News|Comments Off on Tax breaks for families with the Secure Act:

Benefits for Individuals under new secure act

Starting in 2020, a new law takes into effect that will help expand opportunities for individuals to increase retirement savings. There is no longer a restriction to the age limit that contributions can be made into a traditional IRA. After reaching age 70 ½, you can make qualified charitable contributions of up to $100,000 per year directly from your IRA. As of 2020, the new minimum age for distributions from IRAs and retirement plans is now 72. The exception to this is if you are still working as an employee and do not own over 5% of the outfit that employs you, then you can postpone distributions until you retire.  For more information click here.

By |January 13th, 2020|Categories: BCo Community News|Comments Off on Benefits for Individuals under new secure act

Cryptocurrency: Hard Fork and Airdrop

The IRS has released Rev. Rul. 2019-24 to provide guidance on the tax treatment of receiving a cryptocurrency as a result of a hard fork and an airdrop. An owner of the existing cryptocurrency has no gross income if the new cryptocurrency has not been received as a result of a hard fork. However, gross income must be recognized if the new cryptocurrency has been received via airdrop. Click here to see examples. The IRS has also updated its Virtual Currency Transactions FAQs on its website here.

By |January 13th, 2020|Categories: BCo Community News|Comments Off on Cryptocurrency: Hard Fork and Airdrop
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