================================================================== ============ Robust Alternatives =========== ============ Accounting, Financial and Tax Services =========== ================================================================== Check it on the web for best possible design. https://campaign.atlantisnet.com/index.php/category/robustalthtml ================================================================== ------------------------------------------------------------------ ------------------------------------------------------------------ Impact of U.S. Election on Your Taxes Plus -- Year-End Tax Planning 2024 Tips! It is widely projected that the November 5th election is likely to significantly impact taxation, both for businesses and individuals.  Some key points: President-elect Trump has discussed a wide variety of federal tax proposals that could change taxation for businesses, individuals, and estates. In addition to the Presidential victory, Republicans have won back a majority in the U.S. Senate, with 53 seats.  As of this writing, Republicans in the House of Representatives are projected to win their 218th seat, the number needed for a majority.  In concept, the Republican-controlled Congress makes it easier for the Trump administration to achieve its tax agenda. Many provisions in the Tax Cuts and Jobs Act (TCJA), the largest overhaul of the American tax code since the Tax Reform Act of 1986, are scheduled to expire at the end of 2025. Now, there’s a better chance that most provisions will be extended. Whether extensions and proposals will actually materialize depends on a variety of factors, such as Congressional concerns about the potential negative effects of tariff proposals on inflation, disagreement within the Republican Party over proposals to repeal parts of the Inflation Reduction Act, etc. Due to this complexity, potential changes in tax law are still hard to predict. Let's take a look at what might be happening in 2025, along with options for 2024. Although the TCJA introduced numerous sweeping changes to the U.S. Tax Code, many are temporary and expire on December 31, 2025. Many of these changes will end or revert to pre-2018 law on January 1, 2026, unless new legislation is introduced to extend these TCJA provisions.  This could have a dramatic effect on both business and individual taxation.  However, the president-elect would like to make the TCJA’s individual and estate tax cuts permanent. Business Tax Planning: If the TCJA is allowed to sunset and thus the 20% 199A deduction expires, owners of S corporations, partnerships, LLCs taxed as partnerships, and sole proprietorships may experience increased tax burdens. The former and future president has suggested many other tax law changes that would impact businesses, including: Corporate tax rates: Lower the corporate tax rate from its current 21% to 20% (or 15% for companies making products in America). He’d also like to expand the Section 174 deduction for research and development expenditures. Business tax credits: Repeal the Inflation Reduction Act Tariffs: Impose 10–20% baseline tariff on imports; 60% tariff on imports from China. Personal Tax Planning: The president-elect has proposed eliminating income and payroll taxes on tips for restaurant and hospitality workers, and excluding overtime pay and Social Security benefits from taxation.  He has alluded to possible tax incentives for first-time homebuyers. The expiration of TCJA provisions would affect taxation of individuals and families nationwide, including: Increased incentives to itemize deductions. Child tax credits could revert back to pre-TCJA rates that were 50% less. Charitable contributions cap will revert back to 50% of AGI. High-income individuals may encounter higher tax rates and increased vulnerability to the Alternative Minimum Tax (AMT). Estate taxation will revert back to pre-TCJA amount of $5.5 million before adjustment for inflation. 2024 Year-End Tax Planning: Year-end tax planning for 2024 takes on a slightly different twist, since we need to consider possible 2025 legislation.  It isn't too late to take advantage of tax minimization strategies for your customer's business, such as: Develop a multi-year horizon. Some tax moves that you make in 2024 could end-up hurting you in 2025, so plan for several years. Especially if your business is considering expansion, relocation or some other major change, it is important to look at the long-term tax ramifications.  The Trump administration is promising various incentives for businesses (see above); for example, if your business in moving production to the U.S. in 2025, this could affect multiple layers of tax planning. Purchase equipment. If you're planning on buying equipment, consider doing it before the end of the year to take advantage of the Section 179 expense deduction (rather than requiring the property to be capitalized and depreciated). Accelerate or defer income? Although President-elect Trump has proposed reducing the corporate tax rate, it might not get Congressional approval in 2024.  Consider with your CPA whether to defer income to 2025. Defer or accelerate expenditures? If your business is having a bad year in 2024 but you expect a much better 2025, it might make sense to delay the payment of your expenses.  This should be part of a strategic tax plan, projecting income and expenses for both the current year and following year and determining how to best minimize taxation. Review retirement plan options. Depending on the type of plan, you may be able to start or add to your retirement plans. Save Money on Taxes! Each situation is different, so have your customer contact MyCFO to make all the right moves.  Contact us today for a free initial consultation! ------------------------------------------------------------------ Contact: ------------------------------------------------------------------ RobustAlternatives 146 Main Street Medway, MA 02053 Telephone: 508.243.1684 E-mail: inquiries@robustalternatives.com Website: RobustAlternatives.com ------------------------------------------------------------------ Links: ------------------------------------------------------------------ Home https://robustalternatives.com/ Our Team https://robustalternatives.com/our-team/ MyCFO https://robustalternatives.com/mycfo-services/ Robust Alternatives https://robustalternatives.com/robust-alternatives/ Connect https://robustalternatives.com/connect/ Disclaimer: https://robustalternatives.com/disclaimer/ ------------------------------------------------------------------ Unsubscribe: ------------------------------------------------------------------ This newsletter was sent to #email#. 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