For the purposes of the new Qualified Opportunity Fund, TCJA is not the big bad wolf. In fact, it is a new strategy for tax planning shaped by the tax reform of the Tax Cuts and Jobs Act.
These funds can defer capital gains in the current year, significantly reduce some of them later on, while making capital gains tax-free on the new investment. You will need to strategies to maneuver the new rules and time frames to implement the tax benefits.
Here are two strategies that may help you:
If you need help strategizing please contact us we can help! 262-358-8297
Thanks to the tax reform of the Tax Cuts and Jobs Act, you have some obstacles to overcome for tax years to 2025.
TCJA tax reform changes the kiddie tax rules to tax a portion of an affected child’s or young adult’s unearned income at the federal income tax rates paid by trusts and estates, which can be as high as 37%.
If this applies to you, tax planning will help mitigate this tax.
If Congress doesn't send a bill to the President approving a spending budget by midnight Friday, most federal agencies will be forced to stop operations, again.
It is expected that bipartisan legislation will be first voted on by the Senate today, then the House where a vote is expected on agreement this evening. The bill then goes to the President for signature Friday morning.
It is unknown exactly how a second shutdown would affect the IRS, filing season, tax preparers and taxpayers. We would expect additional refund delays and staff shortages.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.