Year End Tax Planning - Business

December 2020

Dear Friends,

We sincerely hope that you and your family are safe and secure and are managing to cope in the midst of this horrible COVID-19 pandemic. Let’s hope that 2021 gets back to normal before too long.

There are not a lot of changes in the Tax Law for 2020. It’s 2021 that we need to worry about. Most years, we talk about postponing income into the following year. That may not be the case now, especially if you expect your income to exceed $400,000. However, there are still ways to reduce your income and your income tax:

  • Purchase equipment to take advantage of BONUS Depreciation.
  • Maximize your retirement contribution.
  • Write off obsolete inventory.
  • Consider putting your children on payroll.

If you received a PPP Loan, get verification of forgiveness. If your loan is forgiven, you will be taxed on it in the year it is forgiven.

Last year we were able to help many clients with financial, retirement, insurance and estate planning. Give us a call to find out how we can help you. We also have over 200 clients in various retail, wholesale and service industries. Network with us. Call if you need anything.

Remember, the IRS will never call you on the phone or email you. If someone contacts you this way, and says they are the IRS, it is most likely a scam. Hang up and call us.

Once again, I want to thank you for your continued trust in me and my “wonderful staff”, (that’s what they call themselves, I never disagree with them) Kim, Maryellen, Stacey, Ronnie, Julie, Phil and Bill.

We really appreciate it and never take it for granted. Have a very Merry Christmas and a prosperous New Year.

Warmest regards,
Anthony J. Mascherino

 
341 E. Lancaster Avenue, Downingtown, PA 19335
ajmasch@fast.net • 610-269-6833 • 610-269-7983 (Fax)
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