On Thursday, December 3rd, Natalie McHugh, Deanna Salo, and Karen Snodgrass joined Private Vista LLC for a webinar, “Navigating the Evolving Tax Climate: What to Do Now & How to Prepare for 2021”. Below are a few of the key takeaways from the presentation. We invite you watch the full presentation to hear all of the insights shared.
CARES Act Updates
- If you skip your 2020 RMD, you do not need to make up for it in 2021.
- If you have an IRA or 401(k), you can take a distribution of up to $100,000 and not be subject to the 10% early withdrawal penalty charge.
- Click here for more CARES Act updates.
PPP Loans and Their Tax Treatment
- We are still awaiting guidance from Congress and the IRS on whether or not PPP loan funds will be taxed. We recommend working with your advisor to determine the best course of action and incorporating PPP into your year-end tax planning discussions.
- Click here for more information on PPP loans.
Year-End Tax Planning Strategies
- For businesses, we are working with our clients to determine where their finances stand today, where we anticipate their finances to be by year-end, and how we think the PPP funds will impact taxable income.
- Don’t forget about the Qualified Business Income (QBI) deduction for 2020.
- For individuals, we are recommending leveraging the tax benefits from gifting and charitable donations.
- Click here for more tax planning insights.
President-Elect Biden’s Tax Plan
- C-corporations (i.e. publicly traded companies) are currently enjoying a 21% tax rate, but Biden is considering raising it to 28%.
- Individuals currently pay up to 37% on income and payroll taxes, but Biden is considering raising it to 39.6%.
- Click here for more information on Biden’s proposed tax plan.
If any of the content covered in this webinar raises questions for you or your business, please contact Cray Kaiser. We’d be glad to help you with your tax planning for 2020 and into 2021!