The tax landscape is continually changing. Keeping up with the law is a necessity, and requires a lot of attention. Not only are the laws constantly changing, but the courts are interpreting them in different ways. One major example recently is the Wayfair case which has had far reaching effects on sales tax. With the COVID-19 pandemic, there have been many temporary and permanent changes to tax laws, as well as a delay in paying and filing 2019 taxes.
Some of the details of the tax law have changed since last year, but the fundamental laws remain. Now is a good time to look back at 2019 to see how we did and to look forward to 2020 to plan what to do now. The changing landscape will offer challenges as well as opportunities.
As we go forward, look at some of the things your business can do, and some things that you can do as an individual.
The lower tax rate for businesses is just the beginning. There are many things a business can do to lower taxes. Some of them will build goodwill among employees, since they will reap the benefits.
Here is a list of some of the more common things a business can do:
With the increase in the standard deduction to $12,000 ($24,000 for married filing jointly) many taxpayers will no longer be able to itemize effectively. Also, the total tax write off for taxes like state income tax and real estate tax is limited to $10,000. There are still things you can do to minimize taxes:
These are just a few of the many tax saving planning tools available. I would be happy to explore your personal situation before year end in order to minimize your taxes.
S.A. Freitas, CPA
Certified Public Accountant
181 Odell Hill Rd.
Center Conway, NH 03813
PO Box 2900
North Conway, NH 03860
Fax: (401) 435-3463