A Brief Tax Alert – Year end 2021

To clients and friends:

Are you getting mixed signals? As the new year approaches, here are some year-end moves to consider for the 2021 tax year and other tax news!

• Capital gains tax hikes have been removed from consideration for the 2021 tax year. Consider taking capital gains before year-end, such as from investments in brokerage accounts.

• Remember to take your retirement minimum distributions (RMDs) by the end of the year to avoid penalties.

• For those that are 70½, remember that your charitable contributions can be made directly from your retirement plant and count towards your RMD.

• For state and local tax deductions, the “SALT” limitation only applies to itemized deductions.

• Be cautious of press releases announcing passed tax acts. Acts like the “Build Back Better Bill” for which the Senate has not passed and has yet to proceed for signature by the President.

Reach out to AZ Southwest CPA Services today to help you navigate and answer your year end- tax concerns.

Let us help you build a stronger financial future!