Tax Planning Is Essential at This Time of Year

Crowe releases its 2019 year-end tax planning guide

Many provisions of the Tax Cuts and Jobs Act (TCJA), the most sweeping tax legislation since 1986, went into effect over the past year, dramatically changing the tax landscape. While these provisions included individual income tax and business tax rate reductions, they also limited or removed many tax breaks. To help navigate these changes, Crowe LLP, a public accounting, consulting and technology firm in the U.S. with offices around the world, has issued “Tax Planning: 2019 Year-End Guide.”

According to Gary Fox, managing partner of tax services at Crowe, smart timing of income and expenses can reduce tax liability, and poor timing can unnecessarily increase it. “The IRS has been releasing guidance on key components of tax reform at a rapid pace and will continue to do so,” said Fox. “Tax professionals are continually working through these details and changes, so it’s critical for businesses and individuals to consult with their tax advisers now to determine the best strategies for their particular situation.”

The guide includes deeper insights on the following topics:

• Year-to-date review: tax developments, including the impact of the TCJA
• Executive compensation: restricted stock, restricted stock units, incentive stock options, nonqualified stock options and nonqualified deferred compensation plans
• Investing: capital gains tax and timing, wash sale rules, loss carryovers, zero percent rate, mutual funds, small business stock, passive activities and income investments
• Real estate: home-related deductions, home rental rules, home sales, real estate activity rules, depreciation-related tax breaks, business interest expense deduction and tax-deferral strategies
• Business ownership: business structure, Sec. 199A deduction for pass-through businesses, retirement savings, exit planning and sale or acquisition
• Charitable giving: cash donations, stock donations, individual retirement account (IRA) donations, making gifts over time, charitable lead trusts and qualified charities
• Family and education: child credit, the “kiddie tax,” IRAs for teens, prepaid tuition and education savings accounts, ABLE accounts and the American opportunity credit
• Retirement: retirement plan contributions, Roth IRA conversions, early withdrawals, leaving a job and required minimum distributions
• Estate planning: estate tax, gift tax, generation-skipping tax, state taxes, exemption portability, tax-smart giving and trusts