4th Quarter Letter – November 2024

AZ Southwest CPA Services, PLLC

6860 N. Oracle Road, Suite 160 Tucson, AZ 85704
Phone 520-888-3696  Fax 520-888-3685

November 2024

November is here with much cooler temperatures, and with it arrives a special feeling that our favorite Thanksgiving and Christmas Holidays are just around the corner!

Because smart tax planning is a year–round process and fourth quarter “timely” attention to tax developments can pay off nicely at year-end, we are here to help you strategize your tax goals to achieve the best outcome.

Business owners especially, have unique areas where tax planning can be beneficial ahead of year-end. Asset acquisition and related depreciation, retirement plan funding options, and considering special elections for how a business entity is taxed are just some of those unique

areas where tax planning can help. Additionally, business succession planning, buy-sell options, and tax-related insurance matters may also be advantageous to discuss at year-end.

Individuals also have several year-end tax planning options. There are opportunities related to retirement plan contributions, required minimum distributions (RMDs) and/or Qualified Charitable Distributions (QCDs), 4th quarter income tax estimate payments and/or tax withholding rate management, retirement plan beneficiary designations for optimal choices, and many other Federal opportunities exist for a tax-wise individual to consider at year-end.

Arizona (AZ) state tax credits are another helpful tax planning tool that can aid both individuals and businesses. With these tax credits, you might be able to claim a $1 for $1 tax credit towards your Arizona tax liability. Most of these AZ state tax credit donations can be made for the 2024 tax year until April 15, 2025, and can be carried forward to another tax year if not used.

With tax laws on Estates going into a sunset period on January 1, 2026 (estate tax exemption amounts revert to prior limits on December 31, 2018), the tax planning coordination to preserve exemptions is quickly becoming more important. This needs to be discussed and addressed, if applicable to you. The reality is that the bypass rule for first decedent will be lost upon the death of the second decedent without proper editing of the Estate document wording. The good news is that this avoidable taxation can be guarded against, so you may wish to schedule a meeting with us to discuss further.

We are here to help you reduce and control your income tax exposure and tax-related risks, whenever you may choose to discuss. Please consider calling our office, (520) 888-3696, to schedule an appointment as soon as possible and address your year-end tax planning questions and concerns. This can pay off substantially when your 2024 income tax returns are prepared.

Upcoming:

• Tax organizers and related routine annual engagement letters will be mailed out at year-end. Please let us know if you have address changes or other updates.
• Next year, we’ll be offering an annual subscription billing option for tax service packages with different year-end tax planning options. Please be on the lookout for these options when you receive your annual engagement letter package.

In this Thanksgiving season, we want you to know that we are grateful for our client relations and appreciate your continued trust in our firm.  We value each one of our friends and clients.

Sincerely,

For AZ Southwest CPA Services, PLLC
Managing Member