This tax law became permanent but it’s still very underutilized. Many others are as well!
I know on first read this probably sounds complicated, but it’s very simple. It’s better to take the income off your tax return than to take the deduction. It’s a win and it’s now permanent.
There are numerous other tax planning opportunities to take advantage of, some of which are listed below. To utilize these deductions properly does take some forethought and planning.
Permanent, now in the tax code;
- Qualified charitable distributions (QCDs) from IRAs
- Deduction for state/local sales tax is limited
- Even higher education credits (American Opportunity Tax Credit)
- Teachers’ classroom expense deduction
- Code Section 179 deduction is even bigger
Because these have been temporary, in some cases on and off again, tax rules, I don’t think most tax firms have really intertwined their advice to the general population of how to use these breaks. Now is the time to examine your personal income or business income and see if any of these tax breaks that are now permanent could be helpful to you before the end of 2020. The best way to do that is to call, text, or e-mail us right now and set an appointment to discuss these new permanent tax code rules, and examine which ones may be beneficial to you. Then you’ll have time to react before the end of the year without being in a rush.