There’s always some concern during transition years that tax planning could be going through some major changes in the near future, prompting many to evaluate their current plans. That’s certainly true this year as experts begin to speculate the real tax plan proposals of a President Trump.
Although we’ll have to wait until January and beyond to see what changes are actually pushed through, there are four key components to his current plan worthy of considering as you approach your year-end planning:
- Business tax cuts: Although he’s proposed some hefty business tax cuts, he also plans to eliminate a lot of business deductions, too.
- Individual cuts: In addition to getting rid of the Obamacare net investment income tax, Trump has proposed making three tax brackets in the US: 12%, 25%, and 33%.
- Estate taxes: The president-elect has previously gone on the record saying that he wants to eliminate the estate tax completely.
- Foreign profit taxes: Trump argues that far too many dollars are escaping the US tax system entirely and therefore supports a 10 percent repatriation tax on accumulated profits for U.S. company foreign subsidiaries.
No matter what changes do happen, it will be intelligent to have a relationship with an experienced tax and estate planning firm already established. These changes are certainly not unexpected, but it could rock the current planning opportunities and present the chance to overhaul your individual and business plans. Keeping your eye on the news and putting in a call to your estate planning lawyer for an annual review could be well worth it so that you remain poised to adapt to changes as necessary.
At Shah & Associates, we’re ready to review your current estate and tax planning and talk about next steps should the tax code change. If you haven’t yet started the process, now is the time. As always, planning ahead will be important for minimizing your tax obligations and allowing you to pass on as much as possible to beneficiaries. Contact us today to learn more about how we can help: email@example.com