The year 2023 saw a rebounding stock market, reduced inflation, and growing hopes for a soft landing for the economy. Amidst this economic environment were bank failures, congressional gridlock, and the continuation of geopolitical international conflicts. With 2024 underway, businesses are likely to encounter their own unique combination of new opportunities, changes, and challenges. This is especially the case from the standpoint of tax planning. Below is an overview of the top areas to consider in your tax planning for 2024.

Taxpayers and their advisors face an uncertain future due to volatile markets, the potential for recession still looming, and increasing interest rates. While this uncertain market presents challenges, it also creates certain wealth planning opportunities.

In a recent Q3 2023 Newsletter article, we outlined how Qualified Small Business Stock (QSBS) can be a powerful tool for certain taxpayers and how proper documentation and technical analysis are important to ensuring that your QSBS position can withstand an IRS challenge.

The economics of college sports changed in a seismic shift on July 1, 2021, when the National Collegiate Athletic Association (NCAA) adopted an interim policy allowing student-athletes to be compensated for the use of their name, image, and likeness (NIL) without impacting their NCAA eligibility. The earnings potential for nearly half a million college athletes changed radically overnight following this policy change. Boosters, supporters, and fans of college athletic programs quickly raced to establish "NIL collectives" to develop, fund, or otherwise facilitate NIL deals for student-athletes.

Non-fungible tokens (NFTs) experienced a huge spike in investor interest in 2021 before collapsing in 2022 along with the broader financial markets. However, there continues to be excitement around NFTs. Along with this interest, there remains much ambiguity in the taxation of gain from the disposition of NFTs by investors. If NFTs are considered collectibles for tax purposes, investors may be surprised by the significant difference in capital gains tax. Until there is clarity around how NFTs are taxed at the point of investment or sale, individuals or funds invested in NFTs will remain in suspense.

After a more than 20-year debate regarding tax affecting, the U.S. Tax Court recently sided with the taxpayer in the case of Estate of Cecil v. Commissioner (Cecil) in its March 2023 ruling. Since 1999, the Tax Court, IRS, taxpayers, and appraisers have been challenged with the question of whether it is appropriate to apply an entity-level corporate income tax to an S corporation in determining value. As tax affecting is commonly accepted and performed in the appraisal practice in a variety of areas, this recent court ruling is welcome news for taxpayers and appraisers alike.

Capital gains taxes can severely erode investment performance over time. Effectively managing portfolio gains through strategic tax loss harvesting can create significant annual tax savings and increase real portfolio returns over the long term. Tax loss harvesting involves selling investments at a loss to offset taxable gains in an investor's portfolio, thus reducing annual tax liability. Capital losses that exceed capital gains each year (in excess of the $3,000 generally allowed against ordinary income) can be carried forward to offset gains realized in future years.

In the world of gift and estate tax, for the tax year 2023, a U.S. citizen and/or resident decedent currently receives a $12.92 million lifetime exemption from tax on their worldwide assets.

In recent years, the shift from brick-and-mortar retailers to the digital marketplace has spurred innovations but also some headaches for consumers and businesses alike. Now, more than ever, consumers are likely to shop online rather than go to a physical store.