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2016-2017 Tax Planning Guide

In prior years, we’ve included quotes about planning that we thought were insightful, such as “Those who fail to plan, plan to fail…” or “Adventure is just bad planning.” In this exasperating election year, the results of which will no doubt significantly impact our tax laws, the only useful quote we can come up with is “Please, make it end…” Nevertheless, a vigilant eye towards innovative tax planning is the best way to both prevent those April surprises and realize your financial goals.

The primary tax legislation passed in the last year was the PATH Act, which included over $620 billion in tax reductions for families and businesses. Some of the key provisions include:

  •  making the expansion of Section 179 permanent (this provision allows small businesses to immediately deduct up to $500,000 of qualified fixed asset additions)
  • charitable distributions from IRAs are now permanently tax free up to $100,000 for taxpayers over the age of 70 ½
  • Bonus depreciation, which allows all businesses to immediately deduct 50% of some capital expenditures, has been extended until the end of 2019
  • the Cadillac tax on expensive health plans has been delayed for two years

The above are just a sampling of the many ideas incorporated into the Guide. We urge you to give it a more than cursory review. And, as always, we strongly encourage you to contact us to get started on a planning strategy and implementation plan that effectively minimizes your taxes going forward.

2016-2017 Tax Planning Guide