Need to Know Information on Year-End Tax Planning

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Tax Planning
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Need to Know Information on Year-End Tax Planning

The Tax Cuts and Jobs Act (TCJA) is the biggest tax code overhaul in recent history. As we approach the end of 2018, it’s the time to be thinking about year-end tax strategies. While there will always be uncertainties down the line—from legislation to natural disasters and more—putting a solid tax plan into place is an important strategy for hedging against future unknowns.

As further guidance and important updates to the TCJA continue to be released, tax planning strategies may change. That said, the tax professionals at White Nelson Diehl Evans LLP (WNDE) recommend that tax plans include provisions for some or all of the following:

The Tax Cuts and Jobs Act (TCJA) is the biggest tax code overhaul in recent history. As we approach the end of 2018, it’s the time to be thinking about year-end tax strategies. While there will always be uncertainties down the line—from legislation to natural disasters and more—putting a solid tax plan into place is an important strategy for hedging against future unknowns.

As further guidance and important updates to the TCJA continue to be released, tax planning strategies may change. That said, the tax professionals at White Nelson Diehl Evans LLP (WNDE) recommend that tax plans include provisions for some or all of the following:

TCJA Provision Impact on Tax Planning
Increased standard deduction More take-home pay
General lowering of individual tax rates More take-home pay
Elimination of the personal exemption May make reducing taxable income more difficult than in the past
Limitations on deductions for state and local income taxes (SALT) Those living in high-income states, such as California, may not be able to reduce their taxable income as much as in the past. There are strategies to consider, such as an Incomplete Non-Grantor Trust.
Reduction of the alternative minimum tax (AMT) for individuals Fewer taxpayers will deal with this complicated tax.
Increase in the unified credit (to $10 million) Fewer taxpayers will be affected by the estate tax; however, some may need to adjust their existing tax plans, if they centered around the saving estate tax in the past.
Repeal of the individual mandate for health insurance (in effect) Taxpayers can go uninsured without consequence. The cost of insurance is predicted to rise, as more healthy people opt to go uninsured.
20% income tax deduction for pass-through entities Business owners might consider reviewing their entity selection.

 

We strongly recommend that all firm clients contact their WNDE tax professional prior to the end of the year in order to determine the best path and establish a solid tax planning strategy. Tax filers should strive to gather and provide all tax documents in a timely fashion to avoid missing out on advantageous tax strategies.

The WNDE tax professionals are ready and waiting to help meet your year-end tax planning needs. With a focus on closely held business and their owners, we draw on our considerable experience to provide tailored tax planning strategies. WNDE tax clients enjoy a variety of key benefits, including:

  • A low staff turnover rate (which means your tax professionals have a strong and long-lasting understanding of both you and your business);
  • Staff who receive ongoing training about current tax laws and their impact; and
  • A firm-wide devotion to establishing close working relationships with clients.

Don’t delay! Now is the time to reach out to your WNDE tax professional to discuss your year-end tax plan. We are here to help.

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