What’s Shakin’ in SALT News – July 2021
Can Taxpayers Who Manage Their Own Investment Portfolios Deduct R...
IRS Audits May Be Increasing, So Be Prepared
President Biden recently released his fiscal year (FY) 2022 budget, proposing significant changes to the current U.S. tax code with a goal of modernizing the nation’s tax system. The Treasury Department also issued its “Green Book” to provide a general explanation of these tax and revenue proposals, primarily focused on corporation taxation, housing and infrastructure, and clean energy, and its related effective dates.
With a majority of these proposals applying toward taxable years beginning after Dec. 31, 2021, Doeren Mayhew’s dedicated tax advisors highlight key takeaways U.S. businesses and individuals should be aware of for tax planning considerations.
Biden’s revenue proposal introduces a significant amount of changes to the U.S. tax code for corporations. Below is an overview:
The Biden proposal includes several changes to encourage more affordable homebuilding as well as improve the nation’s infrastructure. These proposals include:
In an effort to prioritize clean energy in the United States, Biden’s budget repeals several fossil fuel tax preferences as well as introduces renewable and alternative energy incentives.
Most of the tax credits, deductions or other provisions being repealed are targeted toward the production of oil, gas and coal, including the:
New tax credits encouraging clean energy include:
The FY 2022 budget proposes to strengthen taxation of high-income individuals by increasing the individual tax rate as well as eliminating other current tax incentives. Below is an overview of these proposals:
To continue supporting families and workers impacted during the COVID-19 pandemic, the FY 2022 budget proposes extending or making permanent several provisions provided in the American Rescue Plan. This includes:
To offer additional revenue raisers within Biden’s budget, the following is also being proposed:
The FY2020 also includes changes to improve tax compliance and tax administration. These include:
Doeren Mayhew continues to follow news related to these budget proposals and its impact on U.S. businesses and individuals. To learn more about how these changes may impact you or to obtain tax planning assistance, please contact us today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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