2022 Year-End Tax Planning Letter

Dear Clients and Friends, We are rapidly approaching the end of 2022, and as we have seen this past year nothing stands still in the economic and business landscape. This year we experienced historic inflation, dramatic swings in both the stock and the real estate markets, and growing recession concerns. Most everyone has felt the … Continued

General Tax Strategies for Business Owners

Special 100% Bonus Depreciation: Businesses are able to deduct 100% of the cost of new OR used business assets purchased and placed in service during 2022 so long as they have a useful life of 20 years or less. The 100% deduction is only available through the end of 2022 and is phased down to … Continued

General Tax Strategies for Individuals

Contribute to a Retirement Plan to Save Taxes You or your spouse must have earned income in order to contribute to a retirement plan. Taxpayers with modified AGI below certain thresholds are permitted to contribute up to $6,000 to a Roth IRA for 2022. (Taxpayers aged 50 or older are allowed an additional $1,000 contribution.) … Continued

2022 and 2023 Tax Thresholds

The 2022 U.S. income tax filing season is fast approaching and as result, individuals should now be looking at which tax planning opportunities are available to them to reduce their upcoming tax burden. With that in mind, we are supplying a listing of the income tax thresholds and tax brackets for the upcoming 2022 filing … Continued

General Tax Strategies for Business Owners 2021

Special 100 Percent Bonus Depreciation—Under the TCJA, businesses are able to deduct 100% of the cost of new OR used business assets purchased and placed in service beginning on September 27, 2017. if they have a useful life of 20 years or less. The 100% deduction is only available through 2022 and is phased down … Continued

General Tax Strategies for Individuals 2021

Timing of Income To the extent that you can smooth income and not jump into a higher bracket, you will pay less tax. Under the current tax rates and brackets, individuals will be in the 37% tax bracket when their income reaches $523,601 (single)/$628,301(joint). There is an advantage to timing your income if you are: … Continued

Seattle Jumpstart Tax

The city of Seattle has recently enacted a new Payroll Expense Tax: JumpStart Seattle (City Ordinance 126108), on wages being paid to Seattle employees. You may have already heard about this new tax. We wanted to share some of the key points. Overview: This tax was passed in July 2020 to generate revenue to help … Continued

Washington Cares Fund

Washington State has established a new plan, the Washington Cares Fund, which provides a minimal long-term care (LTC) benefit for vested Washington residents. You may have already heard about this new plan, but as a client of HKP, we wanted to share a few key highlights. How the plan will be funded: The plan will … Continued

Taxation of PPP Loan Forgiveness

In early 2020, many of you took advantage of the Paycheck Protection Program (PPP) that the Coronavirus Aid, Relief and Economic Security (CARES) Act created. As we approach the end of 2020, one very important item to keep in mind are implications of the PPP loan that you may have received. When the U.S. Congress … Continued

Federal Reserve takes additional actions

“The Federal Reserve on Thursday took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.” The April 9th, 2020 press release from the … Continued

/ trusted / skilled / committed /