Are You Prepared For The New Changes Coming To Tax Law?

Tax law can change rapidly depending on the economic and political climate. Whether you are a business owner, have high-value property, or are creating an estate plan, it is important to stay up to date on how evolving tax laws will affect you. Navigating tax law can be complicated – especially when there are major changes taking place. Having a good understanding of the upcoming changes to the tax code can help you employ the right strategies to minimize your tax burden while staying compliant. 

What Upcoming Tax Law Changes Should I Be Aware Of? 

With the new administration, a few changes to tax law are coming that will affect businesses, individuals, and estates. It is important to keep track of these changes, but determining how they apply to you or your company can be tricky. Tax law is often complex and highly technical. Upcoming changes you may need to be aware of include: 

• Tax brackets – Starting in 2022, income tax brackets will be higher to account for inflation. Especially if you were already near the limit of your bracket, this change may affect you. 
• Estate and gift tax – The federal estate and gift tax exemptions are increasing to $12.06 million dollars for each individual. If you are planning a high-value estate, it may be worth reviewing your documents to see if any changes may be in order. Some people may find that their estates will no longer be subject to the federal estate tax. Others may find it beneficial to make a few changes, like starting a new trust, to alleviate their tax burden.
• Charitable giving – Strategic charitable giving can benefit you or your business when it comes time to file taxes, and it also benefits the community. 
• Corporate tax – For business owners, staying on top of current tax law is especially important. With the corporate tax rate about to increase, re-examining your business to ensure that it is structured in a way that offers tax advantages may be wise. 
• COVID legislation – A variety of emergency measures related to the COVID-19 pandemic, some of which affect taxes, are still in place. While the final tax burden may be reduced for some people or businesses due to these temporary rules, navigating them can be a challenge. You will want to make sure that you are taking advantage of any tax breaks that may be available to you this coming tax season. 

With so many changes coming, this may be a good time to consult an attorney who can assess how these changes will affect you and help minimize your tax burden. 

Contact an Illinois Business and Estate Planning Law Firm

Gierach Law Firm is skilled in applying a combination of tax, business, and estate planning law to help our clients minimize their tax liabilities and stay compliant. Our Naperville tax planning lawyers will assess your unique situation to determine how coming changes to tax laws may affect you. Call us at 630-228-9413 to schedule a confidential consultation. 

Sources: 

Forbes

Forbes