2021 Financial Services Year-End Tax Planning AlertAnchin AlertDecember 10, 2021
As we go to press with our annual year-end tax planning alert, we are reminded of how transformational the past year and a half has been. There have been extraordinary changes to the way we work, how we live and how we do business – with more potential changes on the horizon. Thriving in this environment means being informed by understanding the current rules, being flexible by keeping abreast of potential changes and being ready to act by starting to prepare for what might come.
After the unprecedented year that was 2020, uncertainty remains front and center in 2021, especially in relation to tax planning. With President Biden along with Democratic majorities in the House and Senate, many assumed they would act quickly to pass tax increases on both corporations and individuals to pay for the cost of proposed new infrastructure and social spending plans. However, as 2021 heads to a close and tax increases are still expected, timing and content of final changes are still not certain. The Build Back Better Act (BBBA) was passed by the House on November 19, 2021 and is now with the Senate, with additional changes expected there.
This alert provides an overview of some of the most significant tax law changes that affected 2021 and other key tax provisions you need to be aware of. It offers a variety of strategies for reducing your taxes in the current tax environment. Use it to identify the best strategies for your particular situation with your tax advisor, who also can keep you apprised of any new tax law developments that might affect you. With many facing difficult and uncertain times, solid financial and tax planning is required now more than ever before. The sooner that one focuses on their tax situation and the available tax planning opportunities, the more likely they are to put themselves in a better tax position. While we cannot predict the future, we can assist you with your tax planning.
Click here to read this year’s tax planning update.