The Tax Cuts and Jobs Act, implemented under the previous administration, resulted in available tax strategies that we utilized to save our franchise coaches and franchisees thousands of dollars. By John Mollica
A New Tax Environment
The Tax Cuts and Jobs Act, implemented under the previous administration, resulted in available tax strategies that we utilized to save our franchise coaches and franchisees thousands of dollars. Now that we have a different administration leading the government in the form of President Biden, a new Senate, and a new House, we expect a migration away from big tax breaks and toward policies that could result in considerable tax increases for select populations, including high-income earning individuals.
What can you do to protect your earnings? When higher taxes are threatened, tax planning becomes even more critical to the long-term success of your business. Whether you are you a franchise coach, or a franchisee, you cannot afford to ignore the changes being discussed and the potential impact on your annual tax obligation. Tax planning takes into consideration both current and potential policy challenges to create strategies to lessen the impact of taxes on you and your business.
Just a few of the tax proposals being discussed by the new administration that must be considered include:
- Increasing the top individual tax bracket from 37% to 39.6%
- Increasing the corporate tax rate from 21% to 28%
- Reducing the estate tax exemption by 50%
- Additional payroll taxes for those earning above $400,000
Each of these changes must be evaluated individually as well as in totality for impacts to you and your business.
My Franchise CPAs is a full-service franchise accounting firm that can assist with Corporate Name Search, and Entity registration as well as state specific licensing. But we love to tax plan! First Financial My Franchise CPAs excel at:
- Staying abreast of proposed tax changes and understanding the possible impacts to our clients
- Preparing and publishing free content to educate our clients to demystify taxes, and
- Building world-class, individually tailored tax plans
We look forward to helping you create a strategy for success!
Watch our take on the key aspects of the 2021 stimulus package on youtu.be/rgAQL6ds62g.
– John Mollica
John Mollica is a Florida-born CPA practicing in Boca Raton. After becoming a CPA in January 2014 and practicing in Public Accounting for several years, John opened his practice focused on bringing world class tax-saving and wealth-building strategies to single- and multi-unit franchisees. As of today, John and his team have helped hundreds of franchisees start, grow and thrive across 50+ brands. For more information on franchise lending options please contact email@example.com, visit myfranchisecpas.com, or call 954-546-2976.