2020 Year-End Tax Planner

Let’s Get Tax Planning

To help you make the most of the current tax breaks, our 2020 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.

What’s On Our Minds as 2020 Ends…


Oregon voters passed all but one proposed local tax measure on the 2020 ballot. When combined with previous tax increases to include the new Metro homeless services tax, a rate increase to the Multnomah County business income tax, and the Oregon Corporate Activities (CAT) tax, those who live and work in the region will be subject to some of the highest marginal rates in the country. High-earning businesses and individuals in Portland, Multnomah County, and the TriMet district should anticipate increases to state and local income taxes anywhere between 1% and 4% starting with the 2021 calendar tax year.

Sean Wallace, CPA, Senior Manager


The pandemic disrupted virtually every aspect of our lives in 2020, and its effect on the Tax Cuts and Jobs Act (TCJA) was no exception. While the Paycheck Protection Program (PPP) was the headliner of the CARES Act, there were temporary and permanent updates to the TCJA that will help many taxpayers. Notably, the rules around charitable contributions, net operating losses, and business interest expense limitations have been temporarily relaxed in 2020 to help taxpayers experiencing economic troubles due to the pandemic. The CARES Act also provided a welcome fix to the “retail glitch” in the TCJA regarding depreciation on qualified improvement property for nonresident rental buildings

Trent Baeckl, CPA, Shareholder


While the CARES Act excludes PPP loan forgiveness from Federal taxable income, it does not address the deductibility of expenses paid with PPP funds. The IRS’s position is that the expenses are non-deductible to the extent of PPP loan forgiveness. If the loan is forgiven in the same year that the expenses are paid, the expenses are clearly non-deductible in that year. However, there is uncertainty regarding how this applies if, as of the end of the tax year, the SBA has not approved of a borrower’s loan forgiveness or the borrower has not applied for forgiveness. I am helping clients who received PPP loans by keeping them updated as additional guidance is issued, answering questions regarding the program’s rules, assisting with loan forgiveness calculations, and helping clients understand the tax implications of loan forgiveness.

Nick Biller, CPA, Senior Manager


The global health emergency caused by the outbreak of the coronavirus significantly affected the normal conduct of business in the United States and around the world. Individuals and companies with international operations face potential tax implications, as their tax residency and determination of where the individuals and businesses are subject to tax was affected by the COVID-19 cross-border travel disruptions. The IRS provides tax relief for affected taxpayers to help them mitigate tax issues caused by prolonged stays in the United States due to border closures, shelter-in-place orders, and flight cancelations. Certain foreign citizens living in the U.S., U.S. nationals living abroad, and foreign businesses with activities in the U.S. are eligible for the relief.


I’m talking with many clients interested in taking advantage of the historically high estate exemption and current low income tax rates. On the estate front, each taxpayer can gift up to $11.58M without incurring gift tax. This exemption is scheduled to be cut in half starting in 2026 but may be scaled back before then as the Administration and makeup of Congress changes. For clients living in Oregon and Washington, making lifetime gifts also saves state estate tax, as the exemptions in those states remain low at $1M and $2.193M, respectively. Income tax planning is also at the forefront, especially with federal rates likely going up in future years. We also have the new local taxes mentioned above beginning in 2021. This makes strategizing about the timing of income and deductions even more important.

Kim Spaulding, CPA, Shareholder