Accounting firms Crowe LLP and BKD LLP released year-end tax-planning guides Wednesday, during a time of great uncertainty over future tax changes in the midst of the novel coronavirus pandemic and the upcoming election.
Crowe’s Tax Planning: 2020 Year-End Guide discusses a number of issues, including recent legislation passed in Congress in response to COVID-19, such as the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
William Holder serves as dean of the USC Leventhal School of Accounting, and holds the Alan Casden Dean’s Chair of Accountancy. Prior to his current post, he was the Ernst & Young Professor of Accounting and director of the SEC and Financial Reporting Institute in the Marshall School of Business at the University of Southern California. Dean Holder has published extensively on the subjects of financial accounting and reporting and auditing. He has received numerous awards during his career, including being twice named as one of the “Top 100 People” in the accounting profession and receiving the AICPA Gold Medal for Distinguished Service, the highest honor awarded by that organization. He has served on a number of governance and standard setting authorities including the Accounting Standards Executive Committee of the AICPA and the Governmental Accounting Standards Board. During congressional hearings leading to passage of the Sarbanes/Oxley Act, he provided invited testimony about financial reporting, auditing and corporate governance.
Udi Hoitash is an accounting professor at Northeastern University in Boston.
Jen Farrell is director of agent and customer research at Liberty Mutual and Safeco Insurance, supporting independent agent distribution and product development. In her role, she conducts primary research and interprets industry trends to ensure Liberty Mutual and Safeco take a data-driven approach to the agent and customer experience. Jen brings nearly 15 years of experience in research and digital analytics, previously working with some of the world’s largest brands to uncover marketing insights and answer critical business questions. When she’s not studying consumers, independent agents, or the insurance industry, she can be found hiking through the woods in New England.
“Navigating the current landscape can be tricky and confusing,” said Gary Fox, managing partner of tax services at Crowe, in a statement. “It is important to stay on top of all the fast-moving law changes of the past six months and to remain prepared for the possible changes in the near future.”
Other topics include standard deductions vs. itemizing, state and local tax deductions, home-related breaks and tax-advantaged saving for health care. The guide also covers family-oriented tax breaks such as child, dependent and adoption credits, dependent care breaks, the “kiddie tax,” Section 529 plans, education savings accounts and Achieving a Better Life Experience (ABLE) accounts.
The Crowe guide also covers investor issues, such as capital gains taxes and timing, being tax-smart with losses, mutual funds, income investments and 3.8 percent net investment income tax. Business-related tax topics include business structure, Section 199A deductions for pass-through businesses, projecting income, depreciation, vehicle-related depreciation, meals, entertainment and transportation, employee benefits, tax credits and the self-employed.
Retirement tax topics include 401(k)s and other employer plans, more tax-deferred options, Roth alternatives, early withdrawals, required minimum distributions, IRA donations to charity and the Setting Every Community Up for Retirement Enhancement Act (SECURE Act).
Estate-planning topics in the guide include estate taxes, gift taxes, the generation-skipping transfer (GST) tax, state taxes, exemption portability and tax-smart giving.
The Crowe guide also covers income tax rates for individuals, corporations and estates and trusts.
The BKD Year-End Tax Advisor aims to help businesses and individuals with their year-end planning decisions and the development of an effective tax strategy, given the recent changes in requirements, updated regulations and new tax laws this year.
“2020 has been a year like no other, with the COVID-19 pandemic affecting each of our lives, businesses and communities in ways many of us have never experienced,” said BKD director of tax quality control Jesse Palmer in a statement. “Solid tax planning is probably more important than it’s ever been before as you work to create a healthy financial future for yourself and your business.”
The BKD Year-End Tax Advisor includes reminders for the year ahead. More than a dozen contributors have written 18 articles for the guide, including discussions of how COVID-19 has affected various industries, charitable giving and information-reporting reminders.
