You still have time to significantly reduce this year’s business income tax bill — even with all the uncertainty about which proposed federal income tax changes, if any, will become reality. Here are some moves for business owners to consider, but stay tuned for developments.
Caveat: If significant tax-rate increases are enacted for 2022 and beyond, you could be better off forgoing 100% first-year bonus depreciation and instead depreciating newly acquired assets over a number of years. If tax rates go up, those future depreciation write-offs could be worth more than a current-year 100% write-off. Fortunately, you have until the deadline for filing your current-year federal income tax return, including any extension, to decide which course to take.
On the other hand, if you expect to be in a higher tax bracket in 2022, take the opposite approach. Accelerate income into this year and postpone deductible expenditures until 2022. That way, more income will be taxed at this year’s lower rate instead of next year’s higher rate. You can also claim the QBI deduction for up to 20% of qualified REIT dividends and up to 20% of qualified income from publicly-traded partnerships.
Thanks to a change made by the 2019 SECURE Act, tax-favored qualified employee retirement plans, except for SIMPLE-IRA plans, can now be adopted by the due date of the employer’s federal income tax return for the adoption year. The plan can then receive deductible employer contributions that are made by the due date , and the employer can deduct those contributions on the return for the adoption year.
I wish I contacted earlier Vincent_R_Wate this year I'm sharing this to encourage every beginner and Bitcoin lover to get in touch with her she is very legit and God fearing person Vincent_R_Wate
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Forbes - 🏆 394. / 53 Read more »