AKM 2019-2020 Tax Guide Now Available

Planning is Still Essential

Many taxpayers are still coping with the sweeping changes implemented with the “Tax Cuts and Jobs Act of 2017” or TCJA.  Especially in areas with higher state and local taxes – such as the Northeast – both individuals and businesses are finding that they need to adopt new strategies in order to legally minimize their tax liabilities.   AKM’s 2019-2020 tax guide, prepared by a trusted third-party partner, provides a tremendous amount of insightful information on a wide range of topics.  We encourage you to download the guide and review the sections that are relevant for you, then schedule time with your AKM CPA to do some proactive, strategic tax planning.  We cannot stress enough that the current environment makes tax planning more essential than ever for most taxpayers – especially high net worth and high income individuals and closely-held businesses.  Your AKM CPA is available to help you navigate this challenging environment safeguard your long-term financial well-being.

AKM Tax Guide 2019-2020

Contents of the 2019-2020 Tax Planning Guide

Year-to-date review [Page 2] – An overview of tax on ordinary income and reduced deductibility of certain expenses, as well as a discussion of the alternative minimum tax and income timing strategies.   Helpful summaries:

  • Chart showing standard deductions
  • Overview of changes to medical deductions and strategies for maximizing your ability to deduct legitimate expenses
  • Chart showing itemized deductions that are also allowed for AMT purposes
  • Note on the risk of underwithholding

Executive Compensation [Page 6] – Strategies for crafting a tax-efficient total compensation package, including restricted stocks, RSUs, incentive stock options, nonqualified options and NQDCs.  Helpful summary: 

  • Case study: Tax Deferral Opportunities

Investing [Page 8] – A detailed summary of tax considerations when buying and selling investments.  Helpful summaries: 

  • Chart showing maximum long and short-term 2019 capital gains tax rates and key exceptions
  • Case study : Using Capital Losses to Absorb Unrecognized Gains
  • Case study: Watch out for NIIT
  • Case study: Can you deduct investment interest expense?

Real Estate [Page 12] –  Overview of strategies for maximizing tax benefits of owning a principal residence, vacation home or rental property.  Helpful summary:

  • Case study: The self-employed can still claim the home office deduction

Business ownership [Page 14] –  A discussion of the challenges business owners face in balancing the business’ income, expenses and tax breaks with plans for their individual financial futures.  Helpful summaries:

  • Case study: beware of the business loss deduction
  • Chart on contributing to profit-sharing plans and SEPs

Charitable giving [Page 16] – A discussion of how to leverage the flexibility of charitable contributions in your tax planning.  Helpful summaries:

  • Chart showing how much you can deduct for specific types of donation
  • Case study: A CRT can reduce single-stock exposure risk

Family and education [Page 18] – An overview of how families can put the younger generations on a sound financial footing—and plan ahead for the impact of the TCJA on the “kiddie tax.”  Helpful summary:

  • Case study: Why Roth IRAs are tax-smart for teens

Retirement [Page 20] – A summary of tax advantages associated with various types of retirement plans.  Helpful summaries:

  • Chart showing 2019 regular and “catch up” contribution limits for various types of retirement plans
  • Overview of proposed changes in the laws affecting retirement plans and how they might impact taxpayers

Estate planning [Page 22] – Overview of the favorable tax environment and potential pitfalls.  Helpful summaries:

  • Case study: When “taxable” gifts save taxes
  • Chart showing 2019 transfer tax exemptions and rates

Tax rates [Page 24] – 2019 individual, corporate and trusts and estates income tax rate schedules.

This entry was posted in Tax Guides.