How to Get Ahead with Year-End Tax Planning

Year-End Tax Planning Opportunities

For private companies, year-end tax planning is about the owners, who will eventually be taxed on business income at the individual level. Most private businesses are organized as S Corporations or Partnerships, so their income is taxed to the individual owner. Even the income of private C Corporations, which is first taxed at the entity level, is eventually taxed a second time at the owner level when distributed as dividends or capital gains when the company’s stock is sold.

Different types of income face different rates and even different types of tax.

The complexity increases this year due to the many tax benefits added to the Cares Act like expanded depreciation deductions, treatment of business losses, new credits and new deferrals among other tax benefits. Several of these tax benefits create tax options that result in fast cash refunds.

Tax planning this year will be profitable. Contact us to schedule your year-end tax planning appointment as soon as possible!

Top Income Tax Rates

 

 

 

 

 

 

 

 

Tax Benefits Threshold