Year-end tax planning
2023 year-end tax letter
Published on Oct. 31, 2023
Once again, we have faced a challenging economic year. Continuing discussion of a possible recession, tight labor markets and high inflation all permeate through the business news. Interest rates continue to rise (another 100 basis points to date in 2023), creating pressure on taxpayers to reduce borrowing costs. The politically divided Congress struggles to pass any kind of legislation, including funding the government via appropriations bills; consequently, prospects for any substantial tax legislation during the remainder of the year appear remote.
Our full 2023 year-end tax letter goes into further detail on tax topics such as key IRS updates, ownership reporting, new international tax issues, enforcement changes and more. While tax planning should be addressed throughout the year as an integral part of overall financial health, this letter is here to assist you in this endeavor.
- Post-TCJA planning and projected 2024 bracket changes
- Employee benefits and executive compensation update
- How the IRS is changing tax enforcement
- Digital asset taxation: 2023 update
- The Corporate Transparency Act beneficial ownership information report
- Notice 2023-63: Technical guidance for research expenditure capitalization
- State and local tax update
- U.S. international tax update
- Things to know about Form 1099-K reporting
- Excess business loss limitation reminders
- Owning ACA reporting nonfiling penalties
- Important accounting method updates and reminders for 2023
- Clean energy credits for individual taxpayers
- Federal treatment of PTET workarounds
- Dealing with the tax consequences of debt restructuring or cancellation
- What's in a name? Recent definitions of a triple net lease across three different programs
- Wading through the uncertainty of simple agreements for future equity
2024 Tax Policy Playbook
Download the Tax Policy Playbook for tax insights and opportunities that could impact your organization in 2024.
2023 year-end business tax planning series
This year, specialists from our tax services practice discussed the latest regulations and the most common topics clients are asking about. Our year-end business tax planning webinar series looked back at changes from this year, and forward to what we can expect for 2024.
The program addressed noteworthy topics such as the Inflation Reduction Act, pass-through entity tax developments, the current status of Section 174 capitalization value chain alignment planning opportunities and planning for the sunsetting Tax Cuts and Jobs Act provisions, among others.
View the individual insights
Post-TCJA planning and projected 2024 bracket changes
Approximately two years from now, absent congressional action, the individual tax environment will change significantly.
Employee benefits and executive compensation update
As we move into the final quarter of 2023, we are waiting for guidance relating to provisions of the retirement plan legislation, known as SECURE 2.0, that are effective in 2024 and 2025. In the meantime, the following topics of interest will be important for you to consider for tax planning.
How the IRS is changing tax enforcement
The Internal Revenue Service (IRS) tax enforcement continues to increase using targeted audit approaches. This article describes some of the more notable changes to tax enforcement by the IRS during the last year.
Digital asset taxation: 2023 update
Digital assets continue to be a significant, but volatile, part of the financial system, with a market capitalization of approximately $1 trillion in 2023. Given the magnitude of the area, multiple government agencies are tackling the impact of digital assets on everyday life.
The Corporate Transparency Act beneficial ownership information report
Starting Jan. 1, 2024, the Corporate Transparency Act will go into effect. All entities formed or registered to do business in the United States will need to follow reporting requirements.
Notice 2023-63: Technical guidance for research expenditure capitalization
The IRS recently announced in Notice 2023-63 that it intends to issue proposed regulations containing much anticipated technical guidance for capitalizing and amortizing specified research or experimental expenditures under §174, as amended under the Tax Cuts and Jobs Act.
State and local tax update
The 2023 state and local tax letter details updates to nexus and remediation, pass through entity elections and more.
U.S. international tax update
This international tax update will highlight some of the latest trends and developments in the time since last year’s publication up through this current release date as we look to help you navigate through the risk and optimize overall global tax efficiency from a value protection and enhancement perspective
Things to know about Form 1099-K reporting
The American Rescue Plan Act of 2021 lowered the filing threshold for Form 1099-K, Payment Card and Third-Party Network Transactions, to $600 and removed the minimum transaction threshold.
Excess business loss limitation reminders
The excess business loss limitation currently applies to the 2021 through 2028 tax years, limiting the amount of trade or business losses noncorporate taxpayers can utilize to offset nonbusiness income.
Owning ACA reporting nonfiling penalties
The process of buying and selling businesses is complicated and stressful. Prudent strategists will add Affordable Care Act compliance to the list of risk considerations worth contemplating to avoid costly implications after a deal is done.
Important accounting method updates and reminders for 2023
This article discusses significant and time-sensitive accounting method developments potentially impacting a wide array of taxpayers in 2023.
Clean energy credits for individual taxpayers
This letter provides a summary of select items to consider when evaluating home improvement needs as well as gathering data while preparing 2023 tax returns.
Federal treatment of PTET workarounds
Pass-through entity tax (PTET) regimes allow partnerships and S corporation entities to make an election to essentially pay the state tax liability on behalf of the respective owners.
Dealing with the tax consequences of debt restructuring or cancellation
Up against current struggles, businesses may be struggling to service their debt and may be forced to reckon with the tax consequences of debt restructuring or cancellation.
What’s in a name? Recent definitions of a triple net lease across three different programs
As the usage of triple net leases for rental activities continues to grow, it is important to understand how the IRS defines a triple net lease.
Wading through the uncertainty of simple agreements for future equity
Taxpayers that use SAFEs may be taking on some risk that the IRS will characterize the instrument in a way that is not favorable. Consider whether the simplicity and possible upfront savings in legal fees is worth the risk.
Recent tax alerts
White House announces federal student loan debt cancellation plan
On Wednesday, Aug. 24, President Biden announced plans to cancel up to $10,000 of federal student debt for borrowers with income below certain thresholds and up to $20,000 for recipients of Pell Grants.
Congress passes the Inflation Reduction Act
Congress has just passed the Inflation Reduction Act of 2022 (“the Act”), sending it to President Joe Biden for his signature.
Inflation Reduction Act passes the Senate
After the surprise announcement at the end of July, the Inflation Reduction Act (the Act) has passed the Senate.
Democrats release slimmed-down reconciliation bill
Sen. Joe Manchin and Senate Majority Leader Chuck Schumer have reached an agreement on a slimmed-down version of a reconciliation bill, titled the Inflation Reduction Act of 2022.
Senate bill boosts tech; other tax legislation being considered
The Senate has passed legislation aimed at strengthening the artificial intelligence, biotechnology research and semiconductor industries.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments. Baker Tilly US, LLP does not practice law, nor does it give legal advice, and makes no representations regarding questions of legal interpretation.