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‘What I find exciting and

interesting about tax is the

evolving changes in the

tax code.’

Brenda Graat, CPA, a partner with Baker Tilly US LLP in Milwaukee

planning,” said Brenda Graat, CPA, a partner with
Baker Tilly US LLP in Milwaukee. About the
While some high-net-worth clients may have author
accelerated gains into 2021, those who have lost out Paul Bonner is a
on that opportunity may wish instead to defer them JofA senior editor.
for a longer term. Suitable vehicles for that purpose To comment on
may include Sec. 1031 exchanges, Sec. 1400Z-2 this article or to
qualified opportunity zone investments, and install- suggest an idea
ment sales, Graat said. for another article,
An article based on a roundtable discussion by contact him at
members of the AICPA Tax Practice Manage- Paul.Bonner@
ment Committee on how they and their firms stay aicpa-cima.com or
prepared for possible tax law changes — including 919-402-4434.
retroactive ones — and communicate resulting
risks and opportunities to clients is also available:
“Tax Practice Management: Keeping on Top of
Tax Changes,” The Tax Adviser, Dec. 2021, p. 778,
tinyurl.com/2systf3z. And for handy references
to key brackets, thresholds, and other amounts
relevant to 2021 individual and business returns,
see the “Filing Season Quick Guide — Tax Year
2021,” in this issue, page 37, and, in the December
2021 JofA, the “Business Tax Quick Guide — Tax
Year 2021,” page 43 in that issue and available as a
downloadable PDF at tinyurl.com/3nx2p4z5. With
that, this preview turns to a few of the “known
tax legislation passed by the House on Nov. 19 and unknowns.”
then moving to the Senate as part of the budget
reconciliation bill known as the Build Back Better INDIVIDUAL TAX PROVISIONS
Act, H.R. 5376. While most of the provisions Child tax credit and child and
would take effect in tax years after 2021, some of dependent care credit
them have potentially profound implications for tax Perhaps the most prevalent new individual return
planning, such as an expansion of the net invest- issue preparers are likely to encounter is the advance
ment income tax for high-income taxpayers and a child tax credit (advance CTC) payment that most
high-income surtax. families will have received each month through the
“With the anticipation of these new and second half of 2021. The advance credit is $300 per
increased taxes, it may be best to consider some tax month for each child under age 6 and $250 per

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