While many taxpayers consider possible future tax policy changes that may result from the recent federal elections, they should also turn their attention to certain current year tax provisions affecting individuals that will expire at the end of 2020. Taxpayers should consider planning for these changes before year-end.
The following highlights a few of the most prominent 2020 expiring year-end opportunities to consider:
Each of these expiring provisions may provide a savings opportunity for taxpayers if necessary actions are taken before January 1, 2021.
Individuals should consider the impact that the above provisions will have on their calculation of their tax liabilities. Opportunities exist before year-end to make additional contributions to public charities, take IRA distributions to help with the costs associated with Covid-19, defer required minimum distributions, recognize excess business losses, carryback net operating losses, file for a tentative refund, or deduct excess business interest expense.
Personal Financial Services Leader, PwC US