During my career, there has never been a time with such rapid change in the tax law. Add to that the recent effects of the economy on businesses & individuals and it makes sense to consider changing your mindset when it comes to taxes.
With many newly created or expanded credits available there may be increased incentive to file your returns earlier than you may have done in the past. Also, certain losses in 2009 may potentially be carried back to prior profitable years and used to create a refund in the current year, potentially helping your short-term cash flow.
In addition, there are several known or expected changes for 2010 and forward that may change the traditional approach to tax and Estate planning. New credits are in place or being proposed. Certain limits are being reduced which may affect how you maximize capital spending or structure your Estate. It is also expected that capital gains and income tax rates will increase in 2011. Contrary to the traditional thinking of deferring taxes as long as possible, there now may be a benefit to accelerating income into 2010.
This merely scratches the surface of things to consider. Each situation is different. Our role on your team is to keep abreast of these changing laws and to assist you in making the best decision for you and/or your business and avoiding missed opportunities. It is more important than ever to be proactive in planning for taxes.
This information is general in nature and should not be construed as tax advice without discussing your particular situation with a qualified tax professional. Contact us for an appointment today.
(Interesting related article from the L.A. Times earlier this week: http://bit.ly/aIpIv6).
Tags: estate planning, tax credits, tax law, tax planning, tax rates, taxes
