2020 Year End Tax Planning

Tax planning in 2018 and 2019, in the wake of the Tax Cuts and Jobs Act, was largely a settled issue. Tax rates have been stable at a low level, meaning that there hasn’t exactly been much reason to act quickly at the end of the year to take advantage of a beneficial tax environment down the road. Of course 2020 has changed all of that, throwing Major League curveballs into what had been batting practice.

What’s Inside

  • Election Uncertainty Promotes Wait and See Approach
  • CARES Act Provisions Ending in 2020
  • Bunching Itemized Deductions
  • Possible Tax Increases in 2021

2020 Tax Policies of the Major Presidential Candidates

This special briefing describes the current tax policies of the candidates of the two major parties: President Donald Trump, the incumbent candidate for the Republican Party and former Vice President, Joe Biden, the Democratic candidate for president.

What’s Inside

  • Trump and Biden Campaigns Take Divergent Views on Many Tax Proposals
  • Trump Proposes Permanent Extension of TCJA Proposals
  • Biden Proposes Rollback of TCJA for Higher Incomes
  • Prospects for Tax Legislation

2019 Illinois Tax Amnesty Program

What is the 2019 Illinois Tax Amnesty Program?

  • Public Act 101-0009 (SB 0689), amends the Illinois Tax Delinquency Amnesty Act and provides the opportunity for taxpayers to pay certain outstanding tax liabilities and to have penalties and interest waived for taxes paid in full during the amnesty period.

What is an eligible tax liability?

  • An eligible tax liability is a liability that was not reported or paid for tax periods ending after June 30, 2011, and prior to July 1, 2018.

When is the 2019 Illinois Tax Amnesty Program?

  • The Illinois Tax Amnesty Program will be held October 1, 2019, through November 15, 2019.
  • Eligible tax liabilities and returns must be paid and filed during those dates to qualify for the waiver of penalty and interest.

Mid-Year Tax Planning – June 2019

Year-end tax planning is on the agenda for many taxpayers, with good reason. That said, you don’t have to wait for November or December to make astute moves. Planning in June or July can lead to tax savings that might be reduced or lost altogether if you wait for late fall to act.

What’s Inside

  • Mid-year tax planning
  • How IRA’s affect Medicaid planning
  • New rules for business travel deductions
  • Tax calendar

Using The 0% Tax Rate – May 2019

Generally, profits from selling assets such as securities and real estate held in taxable accounts are classed as long-term if the holding period was longer than one year. Tax rates on long-term capital gains are 0%, 15%, or 20%, depending on the seller’s income.

What’s Inside

  • Using the 0% tax rate
  • Working around the new “kiddie tax”
  • Final regulations clarify IRC Section 199A
  • Tax calendar

The Standard Deduction’s Double Standard – April 2019

The 2019 “tax season,” during which most 2018 tax returns are prepared, will soon peak at the April 15 deadline. One key trend is that more people are taking the standard deduction, which has increased significantly, and fewer people are claiming itemized deductions, which have been restricted. These changes result from passage of the Tax Cuts and Jobs Act (TCJA) of 2017, which affects preparation of 2018 tax returns.

What’s Inside

  • The standard deduction’s double standard
  • Homeowner’s insurance protects a prime asset
  • Roth solo 401(k) for (very) small businesses
  • Tax calendar