What To Do Before the Tax Cuts and Jobs Acts Provisions Sunset

Source: www.kiplinger.com The Tax Cuts and Jobs Act (TCJA) of 2017 is currently scheduled to sunset at the end of 2025, meaning significant changes are on the horizon for taxpayers. Now is the time to understand those implications and consider strategies to help mitigate the potential tax risks — and this article can help you get started. TCJA brought sweeping changes to the tax code for both businesses and individuals. Along with large, permanent tax cuts to corporate profits, the TCJA lowered individual tax rates by restructuring the tax brackets, almost doubled the standard deduction from $13,000 to $24,000, decoupled the income threshold for capital gains taxes from ordinary income tax brackets to benefit higher-income taxpayers and effectively doubled the lifetime gift and estate tax exemption (from $5.5 million to $11.2 million). All these “non-permanent” changes, however, are set to expire on Dec. 31, 2025 — at which point they will revert to pre-TCJA levels. So, how exactly might this impact your financial plan? READ FULL ARTICLE >>