by Brenda Hershkowitz, EA, President & CEO, Premiere Tax & Accounting
The COVID-19 pandemic has forced tax laws that were never a thought to be enacted since 2020.
One example is the CARES Act. It not only enacted changes for individuals, but also included business related provisions. The changes for businesses, include net operating loss deductions, excess business loss limitations and Section 163(j) interest deduction limits.
Below are just a few items put in place by the CARES Act:
For individuals with IRAs, the CARES Act temporarily waived the RMD (required minimum distribution) rules for certain contribution plans and IRAs for the 2020 calendar year. This waiver is no longer in force for 2021, so RMDs must be taken in 2021.
Charitable contributions have also been adjusted under the CARES Act. Under the act, the modified gross income limitation on itemized deductions for charitable contributions was increased from 60% to 100% for 2020 and 2021 if made to churches, universities, hospitals or other public charities. Contributions to organizations, private foundations or donor advised funds are excluded.
Since taking office in January, the Biden administration is working on several new tax law changes. Tax legislation with significant provisions affecting high-income individuals could potentially be enacted by the end of 2021. You will want to rely on tax professionals to help you navigate these changes to make sure that you have the best strategies to build your wealth.
Premiere Tax and Accounting Services is a full-service firm working with businesses and individual clients. Our knowledgeable team has more than 35 years combined experience.