This year has been one of unprecedented challenges. The coronavirus pandemic and other natural disasters have resulted in significant disruptions to both our businesses and our personal lives.
During 2020, some individuals may have experienced declining values in investments or significant changes in their sources of income. Many businesses have experienced full or partial cessation of operations, disruptions in supply chains, reductions in personnel and a need to shift their entire marketing, sales and delivery approaches. While no one is impacted in exactly the same way, everyone has been and continues to be affected.
Against this backdrop, Congress has enacted relief legislation which contains meaningful tax provisions. Additionally, significant guidance relating to the various provisions of the Tax Cuts and Jobs Act (TCJA) has continued to be issued during 2020. Looking forward, uncertainty remains more broadly from a business and financial planning perspective, as well as in relation to possible future tax legislation.
More than ever in this challenging environment, proactive tax planning for this year will be key to navigating the current environment in a tax efficient manner, minimizing unpleasant surprises and being agile in successfully adapting to changes yet to come.
This letter highlights some areas you may want to consider as you begin the year-end planning process. We anticipate this letter may raise some questions, and we are here to help. We are hopeful that this letter will spark some ideas and begin to lay the groundwork for identifying and evaluating options specific to your circumstances and objectives with your DHG tax advisor.
We look forward to working with you in meeting the challenges of today and planning for the successes of tomorrow.