By Robert Shapiro CPA, ABV
Owner, Shapiro CPAs
After receiving positive comments on last year’s list, I am pleased to provide my top tax and financial issues for 2024. This year, elections dominated, Mother Nature roared in the Sunbelt, and parts of the world were disrupted by terrible wars. Here at home, in the safety of NJ, we deal with new reporting regulations, tax sunsets, and the prospect of a soft economic landing.
New Reporting Regulations
Beneficiary Ownership Information (BOI) filing is a new requirement under the Corporate Transparency Act (CTA). For most, this information needs to be reported by January 1, 2025. Most corporations, LLCs, LLPs, and other entities who file documents with the Secretary of State are required to report. “Beneficial owners” of a reporting company under the Act include any individual who owns or controls at least a 25% share or any individual who exercises substantial control over the reporting company. Penalties for non-reporting are stiff, as it is administered by the Financial Crimes Enforcement Network (FinCEN). Many small businesses will need to file.
Tax Sunset
The Tax Cuts and Jobs Act of 2017 (TCJA) is the most talked about financial sunset this year. We can help you bring it into focus. TCJA are temporary tax law changes. A little proactive planning can be rewarding for individuals, families, and businesses. TCJA reduced income tax rates and expanded estate and gift tax exclusions. The Act also established the qualified business income deduction and fixed the alternative minimum tax. On the flip side, it eliminated the state and local taxes (SALT) deduction (ouch in NJ and NY). By the time you read this article, the election will have been decided, and we will hopefully have some clarity on the fate of this expiring tax law. Your planning window is now.
Buckle your seatbelts and prepare for landing!
After the inflation spike and the inverted yield curve, economists predicted negative growth or a recession. In September, the Federal Reserve Bank began to cut interest rates, to the cheers of the financial markets. In the interim, economic growth has proved to be resilient. Many factors will determine if a recession or more inflation can be avoided, as we cross our fingers for the Goldilocks outcome of a soft economic landing.
Make it a Stress-Free Tax Season
The caring and experienced team at Shapiro CPAs guides clients to a stress-free tax season. We have provided proactive individualized tax management as well as timely and accurate tax preparation since 1937. Each member of the Shapiro CPA team is experienced and equipped to manage the complex needs of successful individuals and closely held businesses.
Clients can choose from a menu of our professional services. Our integrated services have the added benefit of a single point of personal contact with efficient and stress-free tax reporting done electronically by our offices.
As a local resident of the community, I enjoy providing timely and helpful information on a wide range of financial issues. I would welcome the opportunity to put my 40 years of unique experience to work for you soon!
You should discuss any tax or legal matters with your appropriate professional.
This article is not to be construed as written advice or pose any specific recommendations.
