This has obviously been anything but an ordinary year and it appears the Build Back Better Act will not be signed by December 31st. Any proposed legislation will most likely be effective beginning January 1, 2022. In 2021, Congress did pass the Infrastructure Investment and Jobs Act to spur the economy and help with our federal highways, highway safety programs, transit and other purposes. However, this bill had minimal income tax consequences.
Tax Rate Update
Ohio individuals will experience a tax rate decrease that is retroactive to January 1, 2021.
The Biden Administration’s American Families Plan and other tax proposals may complicate the tax landscape for high-income earners. Many of the proposals target taxpayers earning more than $400,000 per year.
This has obviously been anything but an ordinary year and tax guidance has been issued to provide some relief. In 2020, Congress passed the CARES Acts, in response to the pandemic, and many of these provisions will help mitigate the financial impact of the disease, which should be considered as part of your yearend planning to take advantage of them and the effects of the Secure Act to decrease 2020 income tax liabilities for individuals and businesses. Many of these provisions are quite complicated and probably require the expertise of our tax professionals, but there are steps which can be taken prior to yearend to minimize your tax liability.
The 2020 Q2 estimated tax payment date for businesses and individuals is extended from June 15th to July 15th under IRS Notice 2020-23. The relief applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15, 2020, including individuals, trusts, estates, corporations and other noncorporate filers.
During a press briefing on March 17, Treasury Secretary Steven Mnuchin announced that certain 2019 tax payments can be deferred until July 15th.
The passing of the Tax Cuts and Jobs Act led to many questions about your bottom line last tax season. With one year behind us, we look forward to moving into this tax season with more clarity and confidence to manage the effects of the reform for both individuals and businesses.
Victims of the severe storms, straight-line winds, tornadoes, flooding, and landslides that took place on May 27, 2019 in Ohio may qualify for tax relief from the Internal Revenue Service.
After months of negotiations, Governor Mike DeWine signed Ohio's FY 2020-2021 general operating budget, and the following are a few key points that may impact you or your business:
Marked by turbulent trade conditions, a shifting retail landscape, continued fallout over tax reform and the accelerated growth of coworking companies, 2018 was an eventful year for the real estate and construction industries.
A variety of forces are at play in 2019. The IRS will continue to release additional guidance on provisions introduced via tax reform, the future of the U.S. trade policy is uncertain and interest rates will likely rise again.