The following letter was prepared and distributed to clients and friends of Dowell Group, LLP. The letter discusses individual and business tax planning ideas that may be appropriate in certain situations. This does not represent tax advice, as every situation must be considered on its own merits. We always encourage our clients to contact us for advice specific to their situation.
December 10, 2018
Dear clients and friends,
Proper planning for taxes is key for many taxpayers. Each of us should take some time to assess our situation, and then to determine what steps should be taken to optimize the income tax picture. Many changes will impact individuals and businesses this year. For individuals, there are new, lower income tax rates, a substantially increased standard deduction, severely limited itemized deductions and no personal exemptions, an increased child tax credit, and a watered-down alternative minimum tax (AMT). For businesses, the corporate tax rate is cut to 21%, the corporate AMT is gone, there are new limits on business interest deductions, and significantly liberalized expensing and depreciation rules. In addition, there is a new deduction for non-corporate taxpayers with qualified business income from pass-through entities.
In this communication, we will provide checklists of actionable items you may wish to consider in the remaining days of 2018. Those checklists will be broken out between individuals and businesses for your ease of use. Please note that we have also included some non-tax matters for individuals to consider in these final days of 2018.
The Tax Cuts and Jobs Act that was passed a year ago is only now being interpreted by the IRS. While many parts of the new Act are clear, there are many parts that were written vaguely and without specificity, leaving tax professionals in the position of trying to interpret the intent of Congress. New regulations and rulings will be issued periodically, and we encourage you to check our website for updates that might be relevant to you (www.dowellcpa.com). We have many articles posted on the site that are specific to individuals, business owners, fiduciaries, and nonprofits.
Most importantly, please know that our professionals are here to serve you. If you have a question or concern, please call or email us. Whether you might be a client or a friend of the firm, we also want to take the time to thank you. In this busy world, we know that we do not say thanks often enough. We know that we would not be here without you.
Whatever your faith or spiritual beliefs, we wish you peace and good health this holiday season, and in the years ahead.
Dowell Group, LLP
2018 YEAR-END CHECKLISTS
Individuals – Year-End Tax Planning
Individuals – Other Considerations at Year-End
Businesses – Year-End Tax Planning
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