Page 35 - BusinessWest June 17, 2024

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Changes
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$1,220,000 of assets can be expensed in 2024. This limit phases out dollar for dollar once more than $3,050,000 of assets are put into use in 2024.
Note that the amount of business assets expensed can’t exceed the business’s taxable income. Bonus depreciation doesn’t have this rule.
Pass-through Income
A key dollar threshold on the 20% deduction for pass-through income rises in 2024. Self-employed individuals and owners of LLCs, S-corporations and other pass-throughs can deduct 20% of their qualified business income, subject to limitations for individuals with taxable incomes of more than $383,900 for joint filers and $191,950 for all others.
Conclusion
It is difficult to do tax planning in anticipation of what might happen in Washington, especially with
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“It could well be time to accelerate gifting, accelerate income, and postpone deductions. Perhaps with optimism, you can imagine that those postponed R&D and interest deductions will give you a deduction at a higher tax rate, and maybe this can lessen the pain of accepting possible increased tax rates.”
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Outsource
this being an election year and the great divide on tax policy between the parties. Maybe the best planning would be to plan for possible tax changes in 2025 depending not only on the party that wins the presi- dential election, but also on the mark-up of the House and the Senate.
It could well be time to accelerate gifting, acceler- ate income, and postpone deductions. Perhaps with optimism, you can imagine that those postponed R&D and interest deductions will give you a deduction at a higher tax rate, and maybe this can lessen the pain of
By embracing outsourced accounting, small busi- nesses can streamline their financial processes and gain valuable insights and stability, allowing them to concentrate on what they do best: growing their busi- ness and nurturing their customer base. BW
John Trusler is a tax director in the Hartford, Conn. office of Whittlesey. He has more than 19 years
of experience in public accounting and four years
accepting possible increased tax rates.
Finally, remember that this article is intended to
serve only as a general guideline. Your personal cir- cumstances will likely require careful examination and should be discussed with your tax adviser. BW
Kristina D. Houghton, CPA is a partner at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.
in the private sector serving as the chief financial officer for one of the largest multi-specialty, for- profit medical groups in the Northeast. He is a member of the American Institute of Certified Public Accountants and the Connecticut Society of Certified Public Accountants.
by improving bill-payment approval functions and overseeing the account reconciliation processes.
Conclusion
Outsourced accounting is much more than a cost- saving measure for small businesses. It’s a strategic choice that brings expertise, efficiency, technological advancement, and focused business growth.
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