A Look at 2024: The Year When Tax Was the New Black

Gather 'round, folks, for a year-end review that's more entertaining than a reality TV show finale. 2024 has been like a roller coaster at the county fair, especially with the tax drama that's unfolded faster than a soap opera plot twist. 

The Election - A Fiscal Rollercoaster 

We kicked off the year with the usual political fanfare, but oh boy, did it escalate into a full-blown tax melodrama. President Joe Biden's administration tried to keep things on an even keel, but with Donald Trump's return to the White House, we've switched from a slow dance to a breakdance battle. Trump promised to make America tax-cut again, and with the GOP holding both the Senate and the House, it looks like he's got the choreography down. 

Tax Cuts and Jobs Act - The Sequel 

Remember the Tax Cuts and Jobs Act (TCJA) of 2017? Well, it's back with a vengeance. With provisions set to expire at the end of 2025, the new administration is already sharpening their pencils. Trump's team is talking about making those cuts permanent, so if you've been enjoying the lower tax rates, you might just get to keep them, unless you're in the elite club where paying taxes feels like donating to charity. 

Tariffs and Tantrums 

Trump's love for tariffs continues, proposing a universal 10% tariff on all imports and a staggering 60% on anything from China. This could mean your favorite imported snacks might get pricier, but hey, who needs foreign delicacies when you've got good old American... whatever it is Americans eat these days? 

Cost Segregation - The Unsung Hero 

Amidst this tax turmoil, there's been a quiet champion for businesses: cost segregation. This clever accounting strategy lets businesses accelerate depreciation on certain property assets, reducing taxable income faster than you can say, "I need my accountant." With Trump's tax plan hinting at lower corporate rates, this could be a golden opportunity for companies to maximize deductions. 

R&D Credits - Science, Tax, and Everything 

And let's not forget about R&D credits. In an era where innovation is king, these credits have been a lifeline for tech companies and anyone aiming to invent the next big thing. However, there's been some tug-of-war; Trump's administration might look to tweak or even repeal some of the green energy credits from the Inflation Reduction Act but keeping R&D credits strong is like keeping the lights on in the lab - crucial for progress.  But can we get a repeal on that Section 174 stuff? 

What's Next in the Tax World? 

With the new administration, expect a lot of debate, a dash of drama, and perhaps some unexpected tax policy curveballs. The focus seems to be on growth, less government intervention, and ensuring those who earn it keep more of their cash. For the average Joe, well, the tax landscape could feel like navigating a corn maze in the dark. 

So, as we close out 2024, keep your calculators handy, your accountants on speed dial, and maybe start appreciating the art of tax planning. Because in this world, where the only constant is change, the one thing you can count on is that your taxes will always be there to give you that annual existential crisis. 
Until next year, keep calm and carry on with your tax returns.  
 
The Crew at Veritax Advisors 
 
P.S. If you're confused about any of this, you're not alone - the world of taxes is as bewildering as a magician's act, but with less applause. 

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