Returning Value Blog

The tax policy changes proposed by the Biden administration would roll back many of the tax benefits provided by the Tax Cuts and Jobs Act (TCJA) enacted at the end of 2017. The most significant proposals include increasing the federal corporate income tax rate to 28% from 21%, raising the top personal income tax rate from 37% back to the pre-TCJA rate of 39.6%, reducing the estate tax exemption threshold, thus bringing more estates within the scope of the federal estate tax, and almost doubling the capital gains tax rates on individuals earning $1 million annually, from 20% to 39.6%. The Biden administration is also considering a phase-out of the Qualified Business Income (QBI) deduction applicable to both pass-through entities and real estate investment trusts for those deriving income that exceeds a certain threshold ($400,000)—the QBI deduction currently allows eligible taxpayers to deduct up to 20% of pass-through income.

Breakeven analysis can be useful when investing in new equipment, launching a new product, or analyzing a cost reduction plan's effects. During the COVID-19 pandemic, however, many struggling companies are using it to evaluate how much longer they can afford to keep their doors open.

In late December, Congress passed the Consolidated Appropriations Act, which provided COVID-19 relief provisions and included many tax provisions and extenders. The Act contained many COVID-related tax provisions and a slew of extenders ranging from one year to permanent. This article will focus on the miscellaneous tax and disaster relief provisions, which are more applicable to most taxpayers.

The COVID-19 relief bill, signed into law on December 27, 2020, provides a further response from the federal government to the pandemic. It also contains numerous tax breaks for businesses. Here are some highlights of the Consolidated Appropriations Act of 2021 (CAA), which also includes other laws within it.

Are you considering replacing a car that you’re using in your business? There are several tax implications to keep in mind.

As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets instead of taking depreciation deductions over time.

From natural disasters and government shutdowns to cyberattacks and fraud, risks abound in today’s volatile, uncertain marketplace. While some level of risk is inevitable when operating a business, proactive owners and executives apply an enterprise risk management (ERM) framework to manage it more effectively.

Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in?

Marketplace changes during the COVID-19 crisis have caused many companies to make major strategic shifts in their operations — and some changes are expected to be permanent. In certain cases, these pivot strategies may need to be reported under the complex discontinued operations rules under U.S. Generally Accepted Accounting Principles.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act made changes to excess business losses. This includes some changes that are retroactive, and there may be opportunities for some businesses to file amended tax returns.