Business-Minded Legal Solutions

Proactive Planning in a Year of Uncertainty Can Benefit Businesses

If there is one thing businesses can count on, it is continuing and seemingly never-ending changes to U.S. business tax laws. The countless modifications in recent years apparently have not been enough, and new regulations are on the horizon.

An election year adds to the uncertainty for businesses. This year will be no different, particularly if the presidential election is in limbo following November 3rd. Never has it been more critical to employ ongoing strategies to plan for potentially higher taxes while minimizing the burdens.

Ever-Changing Tax Codes and Their Impact

Several tax changes were driven by the current global health crisis. In an effort to stabilize business operations and facilitate investments and staff retention, the government issued delays in payroll taxes and extended tax deadlines.

However, more looming changes range from a decrease next year in how much businesses can deduct interest (currently at 50 percent of adjusted business income) to campaign promises of increasing the corporate tax rate beyond the current 21 percent.

Despite the current, pandemic-driven unpredictability, sound and comprehensive planning and strategies with help from a legal tax planning team can make a difference in maximizing tax reductions and minimize burdens. Waiting for stabilization or pushing ahead with a “business as usual” approach can lead to unnecessary over taxation.

Avoiding a plan can be disastrous for the future of a business enterprise. Embracing the change and allotting the time to devise and employ strategies can make a difference.