Camp Picks 6 Tax Extenders to Make Permanent
The House of Representatives Ways and Means Chairman Dave Camp has picked six tax extenders that he wants to make permanent soon. At the end of last year 50 tax relief exemptions that businesses in the US enjoyed expired. In April this year the Senate Finance Committee proposed renewing all of them, a blanket renewal, that would then give the house time to review all the tax extensions and make some of them permanent and cancel the others under a comprehensive tax framework.
The American tax code may as well be written in Mandarin it so incomprehensible to all Americans who do not have an accounting degree.
The new proposals would make six of these tax extenders permanent without a complete review of the tax code. The rationale for this move is the need to provide US businesses with a stable and continuing tax code that will allow them to plan their business activities.
Tax Extenders and their Uses
The US tax code, especially for businesses, can be quite complex and this is why money and jobs are moving offshore. While the US taxes business profits it also provides for tax exemptions for various activities such as investments in research and development, for capital gains, and offshore investments. While some of these extenders have currently lapsed, it is only a matter of time before they are permanently or temporarily extended again.
In order to ensure that your business benefits from all the tax exemptions and incentives provided by the federal and state governments, you need to retain the services of a competent and sharp tax lawyer.
Advantages of Tax Planning
When you are running a business you need to ensure that you maximize your profits in order to be able to make investments in the right areas. For this you need to work on reducing your expenses including your tax expenses.
This can be made possible by retaining the services of a tax professional who will help you restructure your investments and business to maximize the benefits of the available tax extensions. By simply consulting this legal tax entrepreneur before you make any decisions regarding fresh investments or restructuring, you will be in a position to have the tax consequences of the move factored in. This will ensure that the decisions you make maximize your profits.
Multiple Options
As an entrepreneur or business manager you are aware that there are multiple investment and business opportunities for your money. When you are weighing the various options, one of the factors you should consider is your tax obligations. By discussing your various options with the tax lawyer you retain and understanding the tax implications of these various avenues, you will be able to ensure that you take advantage of all the incentives offered.
Individual Investors
Just as the federal government offers businesses various tax incentives, individual investors too can make use of tax incentives to ensure that they pay lower taxes on the returns they obtain from investments. This can be done by structuring their investments to benefit from all the exemptions provided. Again, the key to maximizing the benefits of tax exemptions and incentives is to retain the services of a tax lawyer who can understand your specific investment needs and goals and help you structure your investments appropriately.
