Dear Clients and Friends:

With a new administration taking shape in our nation’s capital after the elections, you can expect that significant tax reforms will be debated, and perhaps enacted, in the near future. But the greatest impact on year-end tax planning in 2016 will likely derive from what happened late last year, not what will happen next year.

In the waning days of 2015, Congress passed the Protecting Americans from Tax Hikes (PATH) Act, which was promptly signed into law. This new federal legislation reinstated dozens of favorable tax provisions that had expired, many of them retroactive to the beginning of 2015. In some cases, the new law made often-extended tax breaks permanent, with certain modifications. The changes included in the PATH Act provide both individual and business taxpayers with a clearer picture about the optimal tax moves to make before the end of this year.

Furthermore, other developments occurring the last few years—such as a series of new cases, rulings and IRS regulations—could affect your year-end tax decisions. Finally, you might be able to benefit from various other tax-saving opportunities previously written into the Internal Revenue Code. 

Keeping all that in mind, we have prepared the following 2016 Year-End Tax-Planning Letter. For your convenience, the letter has been divided into three sections:

• Individual Tax Planning
• Business Tax Planning
• Financial Tax Planning

Be aware that the concepts discussed in this letter are intended to provide only a general overview of year-end tax planning. It is recommended that you review your personal situation with a tax professional.  The complete 2016 Year-End Tax Planning Letter is included as an attachment to this post . . . just click on the file below.