Dear Clients and Friends,
So far, 2016 has been a quiet year in terms of new tax legislation. The most recent major change took place last December, with the passage of the Protecting Americans from Tax Hikes Act of 2015 (PATH). Many of the provisions in that law remain in effect until the end of 2016 and beyond.
Practically speaking, while tax reform continues to be a talking point in Congress and in presidential election campaigns, the probability of achieving meaningful changes in the near-term is unlikely. The longer-term outlook is more difficult to predict, with proposals and discussions ranging from a comprehensive overhaul to less sweeping revisions involving specific sections of the Internal Revenue Code, such as modifications to the way businesses are taxed.
Though a simpler tax code would be a welcome development, this interlude of relative stability does have benefits from a midyear planning standpoint. Because the rules haven’t changed much, you have an opportunity to look over last year’s tax return and implement planning ideas for 2016. In addition, you can review your current tax situation and select strategies to put in place during the remainder of this year. We encourage you to read through the suggestions in this Letter, then contact us for additional options. We’re ready to help with effective tax-saving advice suited to your needs.