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).
Acacia Parks, Ph.D., is chief scientist at Happify, a digital wellness company. Park’s research focuses on self-help methods for increasing happiness via books and digital technology, with an emphasis on objective and observable outcomes such as physical health indicators. She received her Ph.D. in psychology from the University of Pennsylvania, where her graduate research helped build the foundation for research on bringing happiness interventions to the general public. She regularly publishes articles in scientific journals, has edited three books and is also associate editor at the Journal of Positive Psychology. When she isn't doing research with Happify, she is an associate professor of psychology at Hiram College.
Deepen Desai is the vice president of security research and operations at Zscaler. He has more than 15 years of experience in security research and the analysis of advanced threats.
Amit Unde, CTO, Insurance, LTI, leads LTI’s Insurance Solutions Office and Enterprise Architecture Practice in North America. He has almost 20 years of experience working with insurance companies across the globe. He has a blend of technology and insurance domain expertise, and has helped leading carriers, brokers and reinsurance firms in defining their Enterprise Architecture and IT Strategy Roadmap. Amit specializes in Commercial Underwriting and Risk Management Solutions, and has been at forefront of leveraging modern technologies such as Location Intelligence and Big Data Analytics, for better risk selection and pricing.
“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.
