Notebook with the words "Tax Planning" on it with a pen, a cup of coffee and a calculator on a desk.

2021 Year-End Tax Planning

What a year it’s been! So far, we have had to cope with a global pandemic, extreme political division, and a series of natural disasters—just to mention a few noteworthy occurrences. These events have complicated tax planning for individuals and small business owners.

What’s more, new legislation enacted the last couple of years has had, and will continue to have, a significant impact. First, the Coronavirus Aid, Relief, and Economic Security (CARES) Act addressed numerous issues affected by the pandemic. Following soon after, the Consolidated Appropriations Act (CAA) extended certain provisions and modified others. Finally, the American Rescue Plan Act (ARPA) opens up even more tax-saving opportunities in 2021. The passage of the $1 trillion infrastructure bill brought minor changes to the tax code.

And we still might not be done. More proposed legislation known as the Build Back Better (BBB) is currently being debated in the Senate after passing the House last week. If another new law including tax provisions is enacted before 2022, it may require you to revise your year-end tax planning strategies.

This is the time to assess your tax outlook for 2021. By developing a comprehensive year-end plan, you can maximize the tax breaks currently on the books and avoid potential pitfalls.

Keeping all that in mind, we have prepared the following 2021 Year-End Tax Letter. For your convenience, the letter is divided into three sections:

  • Individual Tax Planning
  • Business Tax Planning
  • Financial Tax Planning
  • Build Back Better Proposed Legislation Potential Tax Implications

Be aware that the concepts discussed in this letter are intended to provide only a general overview of year-end tax planning. It is recommended that you review your personal situation with an Anglin tax professional.  Click here to view our letter.