The IRS and the Social Security Administration have released 2022 inflation-adjusted figures for more than 50 tax provisions. In addition to a 5.9% cost-of-living adjustment (COLA) for Social Security beneficiaries, details about adjustments to tax rate schedules, exemptions, and various thresholds for deductions and credits were announced. The tax year 2022 adjustments generally are used on tax returns filed in 2023.
Topics: estate planning, Taxes, Indivdual Taxes, Employee Retention Credits, Stimulus, Biden, Joe Biden, AMT, child tax credit, Kiddie Tax
The new year is almost here, and it's time to start planning for changes to the tax treatment of research and development (R&D) expenses. The forthcoming changes to the research and development (R&D) tax deduction will affect companies in all stages—from startups to multinational corporations with global interests. Mandated by the 2017 tax reform law commonly known as the Tax Cuts and Jobs Act (TCJA), these changes will no longer allow companies to expense R&D costs immediately.
Topics: research and development, Taxes, R&D, research and development tax credit
The House Ways and Means Committee released discussion drafts that detail various tax increases or incentives for their version of President Biden’s “Build Back Better” infrastructure plan. These discussion drafts are organized into two “Committee Print” summaries, with one pertaining to green energy and social safety incentives, and the other pertaining to corporate and individual tax increases.
Topics: Taxes, Indivdual Taxes, Employee Retention Credits, Stimulus, Biden, Joe Biden, green energy, “Build Back Better” infrastructure plan
Merger and acquisition (M&A) activity continues to be strong in 2021 as companies on the buy-side and sell-side take advantage of favorable market conditions and a rebounding post-pandemic economy. If M&A activity is in the cards for your business, you need to understand how recent tax developments could affect your strategy. Read on to discover tax moves and considerations that will help you make the most of your planned transaction.
Topics: m&a, merger & acquisition, Taxes, mergers and acquisition, post-pandemic
The House of Representatives passed a fiscal 2022 budget resolution (H. Res. 601) on August 24 that paves the way for President Biden’s “Build Back Better” (BBB) plan to be passed into law, potentially by the end of September.
Included in the $3.5 trillion bill are infrastructure programs to fight climate change, expand education access, and expand Medicare, with new funding “pay-fors” coming from tax increases on corporations and individuals with higher incomes. It is designed pursuant to the Senate’s budget reconciliation procedures, which enables the resulting budget reconciliation bill to pass in the Senate with a simple majority vote.
Topics: Taxes, excess business loss limitation, American Jobs Plan, AJP, American Families Plan, Build Back Better, Step-Up in Basis, Long-Term Capital Gains, AFP, Budget Resolution, BBB Plan
On May 28 the Treasury Department released the General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals. This document, traditionally known as the Green Book, outlines in greater detail the Administration’s tax proposals which were initially previewed in the American Jobs Plan and the American Families Plan. President Biden’s proposals, if enacted, would have a wide ranging impact on wealthy individuals and on businesses.
Topics: Taxes, excess business loss limitation, American Jobs Plan, AJP, American Families Plan, Build Back Better, Green Book, Treasury Department’s Green Book, infrastructure
The Biden administration recently announced plans to raise taxes on corporations and other businesses, including tax increases on some pass-through business owners. With these tax increases a possibility, it may be wise to start thinking about steps and strategies to lessen the impact of hikes of a tax rate. These options generally look to accelerate income and delay deductions, which is the opposite of conventional wisdom.
Topics: Taxes, Tax Reform, pass-through entities, C Corporation
President Biden’s $1.8 trillion American Families Plan (AFP) represents the second installment of his “Build Back Better” campaign plan, and would more prominently position the government’s role in society. While his $2.3 trillion American Jobs Plan (AJP) would finance infrastructure spending primarily through additional taxes on corporations, the AFP has “wealthy” individual taxpayers footing the bill for child care and education spending. Congress must first agree on a strategy to formalize both the AFP and the AJP in legislation before it hones in on negotiations over the provisions from these two plans. But before the prospects are explored for the AFP becoming law, an analysis of its key components is in order.
Topics: Taxes, excess business loss limitation, American Jobs Plan, AJP, American Families Plan, Build Back Better, Step-Up in Basis, Long-Term Capital Gains, AFP
President Biden recently unveiled his $2.29 trillion dollar plan to invest in transportation infrastructure and other capital projects, The American Jobs Plan (AJP). Although designed to stimulate the economy, the AJP may come with unfavorable tax provisions. Biden’s proposed eight-year AJP would be funded over the next 15 years through increases to corporate taxes and changes to U.S.-international business taxation. These permanent tax increases would offset the cost of the infrastructure and capital projects, and would begin to reduce federal deficits thereafter.
Topics: Taxes, COVID19, tax extension, Coronavirus, American Jobs Plan, AJP, Reconciliation, Budget Reconciliation
On March 17, the IRS announced that the tax filing and payment due date for individual taxpayers is postponed until May 17. Lawmakers and lobbying groups previously sought a longer postponement, but the additional one month provides welcome relief to many.
Topics: IRS, Taxes, COVID19, tax extension, Coronavirus, tax day
