Planning For the Sunset of Tax Law in 2025

The Tax Cuts and Jobs Act of 2017 included numerous provisions set to expire at the end of 2025, creating potential challenges for both individuals and businesses. Key individual changes include the potential reversion of income tax brackets, standard deduction amounts, and the child tax credit to pre-2018 levels. For businesses, the expiration of 100% bonus depreciation and potential changes to pass-through entity deductions could impact investment decisions. Meanwhile, TCJA’s massive tax cut lowering the corporate tax rate to 21% does not expire.

Although the effects on personal taxes will vary widely. Your specific financial profile—including income, deductions, and credits—will determine whether you'll see a tax increase or decrease. It's important to consult your tax advisor to understand the potential impact on your situation. Our firm guides clients through these intricacies, helping them develop tailored strategies for their unique circumstances.

Please contact us with questions—we are here to help.

The Jarrard, Nowell and Russell family is so proud that we have been honored as one of South Carolina's Best Places to Work!

At JNR, we genuinely care about our employees and support them in being their best while also challenging them to grow within the company. We foster a work hard/play hard environment by celebrating milestones and business success.

Get a Jump on Tax Planning

Fall is a good time for some tax planning that could lower your 2024 tax bill. Since the passage of the Tax Cuts and Jobs Act, which increased the standard deduction, fewer people benefit from itemizing deductions.

If it looks like your itemized deductions for the year will be close to or exceed your standard deduction, here are some ways to increase your itemized deductions and possibly lower your tax bill: 

• Accelerate elective medical, dental and vision care expenses into 2024.

• Beef up charitable donations to IRS-approved charities.

• Make your Jan. 1, 2025, mortgage payment in 2024, and consider prepaying state and local income tax and property taxes that are due in early 2025. (But watch out for the $10,000 annual limit on the state and local tax deduction; $5,000 if you’re married and will be filing separately.)

Please contact us with questions.

Beneficial Ownership Information (BOI)

There is a new reporting requirement known as Beneficial Ownership Information (BOI), which came into effect in 2024. This article will provide you with some general information regarding the new reporting rules as well as the initial steps you should take to address the implications of the Corporate Transparency Act (CTA) to your organization.

Who This Applies To: This reporting requirement applies to corporations, LLCs, and any other entities that were created by filing with the secretary of state or similar office. 

Please contact us with questions, and we can help you if you would like assistance filing.