Year End Tax Planner

Download Our Year-End Tax Planning Guide.

To help you make the most of the current tax breaks, our 2019 year-end tax guide offers tips for minimizing your tax liabilities and maximizing potential savings.

In addition to year-round pointers, you’ll find suggestions for incorporating tax-efficient strategies into your long-term plans. By coordinating your tax strategies with your financial strategies, you may accomplish a variety of goals, like growing your business, funding your retirement, or saving for a child’s education.

Together, we can create a plan specifically for you, your business, and your future.

If you have any questions or concerns, we encourage you to contact your Perkins & Co advisor.

NEW OREGON COMMERCIAL ACTIVITIES TAX

Year-end tends to bring conversation about the past year, but it’s also a great opportunity to start talking about what the future brings. One thing we know for sure is that 2020 promises increased complexity to Oregon taxpayers. While uncertainty about Oregon’s new Corporate Activity Tax (CAT) exists, we do know the new tax is effective January of 2020, with registration and filing requirements due early on. Much of my focus this season will be on educating my clients about the new tax and helping them plan and implement a process for successful compliance.

Sean Wallace, Senior Manager

YEAR TWO OF THE TAX CUTS AND JOBS ACT

The Tax Cuts and Jobs Act represented one of the largest changes in U.S. income tax law in recent history. Whenever there are extensive changes in such a short amount of time, there are opportunities and pitfalls – some with significant tax effects. This past filing season was an exercise in applying the law changes with little, and in some cases no, guidance from the IRS. Now that we’re past initial year compliance, I’m looking forward to more proactive multi-year planning concerning the Qualified Business Income Deduction, accounting method changes, TCJA sunset provisions, and interest expense limitations under 163(j).

Nick Prelog, Shareholder

QUALIFIED OPPORTUNITY ZONES

There has been a lot of interest in Qualified Opportunity Zones since the first round of proposed regulations were released in October 2018. The IRS has answered most of our questions for businesses looking to take advantage of this new program, but we are still awaiting final guidance. I’ll be spending time with our OZ team when the final regulations are released around year-end and working with fund managers and businesses to ensure they are meeting the requirements to secure the tax incentives for their investors.

Trent Baeckl, Shareholder

INDIVIDUAL RETIREMENT PLANNING AFTER THE TAX CUTS AND JOBS ACT

After recent tax law changes, passthrough business owners who fund a SEP-IRA or 401(k) may want to reconsider the type or amount of retirement plan contributions they make. The Tax Cuts and Jobs Act has changed what may be most beneficial in some circumstances. If a business owner has income eligible for the 20% §199A deduction, tax-deductible retirement plan contributions may significantly increase or decrease this deduction. Tax planning can help you make an informed decision about which type of retirement plan contribution is most effective for you.

Nick Biller, Senior Manager

MINIMIZING GILTI FOR U.S. INDIVIDUAL CFC OWNERS

The focus of our international tax team this year is helping individual clients who hold an interest in a Controlled Foreign Corporation (CFC) alleviate the additional tax burden from the new Global Intangible Low Tax Income (GILTI) regime. U.S. individuals who own foreign companies are treated unfavorably under the Tax Cuts and Jobs Act compared to U.S. corporate shareholders. In the right circumstances, it can be possible to alleviate this result. A §962 election allows an individual to be treated like a corporation with respect to GILTI from CFCs; alternately, a U.S. shareholder can elect to treat the CFC as a flowthrough entity for U.S. tax purposes. Proper planning can identify which strategy, if either, is most beneficial.

Yulia Sharapova-Leamy, Shareholder

OREGON CHANGES TO §529 PLAN TAX BENEFITS

I want my Oregon clients with school-age children to know that Oregon is changing its college savings plan tax benefits starting in 2020. The change provides a planning opportunity for Oregon taxpayers who are funding college savings through the Oregon §529 plan. By funding up to $24,325 in 2019, and then at least $6,000 (less if AGI is under $250k) in 2020 and later years, married taxpayers can obtain five years of Oregon deduction PLUS a $300 credit for 2020 and beyond. This double benefit may only be possible if a largish contribution is made by April 15, 2020, for the 2019 tax year.

Kim Spaulding, Shareholder

Stay in the loop; subscribe to our blog