It can be easy as an entrepreneur to get caught up in the day-to-day operations and not put much thought into tax planning. However, tax due dates are right around the corner, and it is important to get a head start on tax preparation so that you can continue pushing your business forward.
Another reason to get started early is due to possible legislation that may be passed. Year-end tax planning can be difficult as a majority of tax law changes are typically passed at the end of year. The uncertainty and delay in passing new regulations can be frustrating, however, it is important to get a head start in your year-end planning so that you are prepared. Tax advisors should be available to help you navigate the potential changes and should advise you of the actions you may need to take due to the new legislation.
It may be necessary to speak with a tax advisor soon regarding the new Build Back Better Act and how this may affect you. The main areas the bill will impact are the following:
- individual income tax planning,
- corporate income tax planning,
- international tax planning,
- pass-through income tax planning,
- retirement planning and
- estate planning.
The act started as a $3.5 trillion bill and Congress has attempted to decrease the cost to $1.5 trillion. This means that a lot of proposals have been dropped from the legislation and it is continuously changing. Due to cutbacks that Congress has had to make, it is difficult to know what the final product of the bill is going to be. With this in mind, business owners should not wait for year-end tax planning in response to the bill, since the final product is still being discussed in Congress.
If you would like more details of what the bill involves, visit Accounting Today as they share the most recent framework of the legislation. This list specifically shares the details of the changes in the individual tax provisions as well as estate tax provisions.
If you find yourself struggling to get started with year-end tax planning and need some advice on where to begin, please reach out to me today. I would be happy to refer a CPA to you who can point you in the right direction! You can reach my office at 310-534-5577 or firstname.lastname@example.org.