Page 28 - BusinessWest November 23, 2020

Accounting & Tax Planning
Year-end T
recent memory. Front and center, the
Tax
By Kristina Drzal Houghton, CPA, MST
Planning
financial consequences, the resulting fallout is likely to have a significant impact on year-end tax planning for both individuals and small businesses.
Furthermore, if the election of Joe Biden is confirmed and the Republican party does not hold a majority in the Senate following the runoff elections in Georgia, it is likely to affect the tax situation in 2021 and beyond. This article will first address 2020 planning and then summa- rize some of the Biden tax proposals at the end.
A Turbulent Year Brings Many Changes and Issues to Consider
In response to the pandemic, Congress authorized economic-stimulus payments and favorable business loans as part of the Coronavirus Aid, Relief, and Eco- nomic Security (CARES) Act. The CARES Act also fea- tures key changes relating to income and payroll taxes. This new law follows close on the heels of the massive Tax Cuts and Jobs Act (TCJA) of 2017. The TCJA revised whole sections of the tax code and includes notable pro- visions for both individuals and businesses.
This is the time to paint your overall tax picture for 2020. By developing a year-end plan, you can maximize the tax breaks currently on the books and avoid poten- tial pitfalls.
his year has been unlike any other in
COVID-19 pandemic has touched virtu- ally every aspect of daily living and busi- ness activity in 2020. In addition to other
28 NOVEMBER 23, 2020 ACCOUNTING & TAX PLANNING BusinessWest