Secure Act 2.0 of 2022

On December 23rd, Congress has passed one final spending bill. H.R. 2617, an Omnibus spending bill with bipartisan support in both chambers, will allow the government to continue to run through fiscal 2023 and included in this spending bill is the Secure 2.0 Act of 2022. President Biden signed the bill on December 29th, making … Continued

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

COVID-19 Relief Arrives: Provides stimulus, resolves expense deductibility on PPP & extends expiring tax benefits

The Consolidated Appropriations Act of 2021 (generally referred to as the “COVID-19 Relief Bill” or the “Act”) became law on December 27, 2020 upon President Trump’s signature. Amongst the over 5,500 page spending bill was some long-awaited but anticipated COVID-19 related stimulus relief and an extension of various key income tax provisions for the 2021 … Continued

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