Important Tax Prep Ahead of the 2020 Election
American businesses are on the threshold of the next presidential election year, and the uncertainty of what’s to come and who assumes office is prompting businesses to ensure they are taking every advantage of the lowest tax rates and highest exemptions available under the current tax code.
Being proactive now can ensure that you capitalize on some of the most favorable tax and estate rates we have seen in more than 30 years (as set by the 2017 Tax Cuts and Jobs Act).
How to Leverage Available Tax Benefits
In particular, there are several tax codes that are set to expire (sunset) or could be at risk for significant changes – ultimately, eliminating some of the advantageous tax opportunities that are available to you currently.
- Embrace the Lowest Corporate Tax Rates:
- Your advantage: All-time low for businesses results in maximum benefits and savings.
- Evaluate Income Tax Brackets:
- Your advantage: Understanding your tax bracket can help maximize financial decisions and create potential strategies to bring taxable income down.
- Maximize Estate and Gifting Exemptions (for a limited time):
- Your advantage: Minimize transfer taxes and protect wealth. The federal gift, estate, and generation-skipping transfer exemptions are almost doubled from prior TCJA and will sunset at the end of 2025.
Both individuals and business owners can maximize their financial health through comprehensive tax strategies. It’s recommended that businesses meet with advisors to review, analyze, recommend, and implement changes needed to take full advantage of the rates available today, while simultaneously preparing your business’ tax position in the event of future changes.
As the trusted tax and accounting resource for AmericanHort members, K·Coe Isom’s tax experts can help assess tax plans and make the most of the unique tax opportunities available to horticulture businesses. K·Coe can identify and implement a tax strategy with the highest potential now, and for the future.