Insights & Updates

accounting methods tax

Should You Change Your Accounting Method for 2021?

As Congress grapples with tax proposals and the pandemic continues to create uncertainty for businesses, corporations and pass-through entities can leverage tax accounting methods to effectively improve their federal income tax posture and, in turn, enhance cash tax savings. When assessing their tax situations for 2021 and subsequent years, taxpayers should consider whether they can…

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Proposed Changes to the Self-Employment Tax Exemption

The recently published Green Book contains details on changes proposed by the Biden Administration that aim to rationalize the net investment income tax (NIIT) and the self-employment tax imposed under the Self-Employment Contributions Act. Broadly, these proposals would: Ensure that all trade or business income earned by high-income taxpayers (taxpayers with adjusted gross income in excess of…

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Potential Tax Savings if Rates Increase

The Treasury Department’s Green Book outlines proposals supported by the Biden Administration that would increase federal tax rates for corporations and high-income individuals, generally effective for taxable years beginning after December 31, 2021. Under these proposals: The corporate tax rate would increase from 21% to 28%; The effective tax rate on global intangible low-taxed income…

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