Virginia’s Tax Workaround for Business Owners

At Canal Capital Management, we provide objective guidance and disciplined investment management for our clients. Importantly, tax strategies are a part of every decision we make.

A topic we have been discussing with business owner clients is related to recent legislation that provides an opportunity for business owners to reduce their federal income tax liability if the business makes an election to pay Virginia taxes at the entity level.

Please click HERE to read more.

 

 

 

 

Congress Passes Additional COVID-19 Relief

On Monday, December 21, 2020, Congress passed an additional COVID-19 package that contains $900 billion worth of economic relief for numerous government programs across the US, loans for small businesses, vaccine distribution, and a second round of stimulus checks. The bill is pending the President’s signature and may result in further negotiations and modified terms; we will communicate additional details as they are available. For now, click HERE for a brief overview of key provisions within the (5,500+ page) package approved by Congress earlier this week.

Election 2020: Estate Planning Opportunities

In 2018, as part of the Tax Cuts & Jobs Act, the gift and estate tax exemption doubled to historic levels – from $5.6 million to $11.2 million. After indexing for inflation, this year the exemption is $11.58 million, $23.16 million for a married couple, and it is currently scheduled to remain at this level through 2025.
Whether it’s due to the $4 trillion of COVID-19-fueled fiscal challenges, or a Blue Wave in November that will give Biden the power to pass sweeping tax reform, many high net worth individuals are cautious that a reduction in the exemption could be coming sooner than 2025 resulting in significant estate tax exposure for their family. Click here to read more and for a chart comparison of the major tax policy differences between the two candidates.