With Trump securing the 2024 election, a lot of changes are likely coming down the pike with the extension of the TCJA being one of them. Here are some things to look for.
Income Tax
The Tax Cuts and Jobs Act (TCJA) will likely be extended. This means that the tax brackets will probably remain. If the TCJA were not continued, there would be a tax hike of 1% to 4%. The standard deduction would also have been cut roughly in half. This should hopefully make paying taxes this year a little easier. If you have not paid your taxes in a while, please call us. We do tax controversy work, and we can help.
Unique Tax Cuts
If you followed his campaign, you have heard that Trump talked about tip income and overtime wages not being taxable. He also proposed the idea of a new tax credit for family caregivers and potentially raising the child tax credit.
If you were thinking about buying a car on a loan, it may be more feasible with auto loan interest being deductible, and taxes on Social Security benefits being eliminated. Look for these as potential changes too.
Capital Gains Tax
Capital gains maximum rates may be lowered to 15%, and we could be saying goodbye to the Net Investment Income Tax of 3.8%.
State and Local Tax Deductions
What is SALT? Besides the gritty white substance (the flavor of which cannot be described other than “salty”), SALT is State And Local Tax deductions. Currently, there is a cap on these deductions of $10,000. Trump declared he would eliminate SALT entirely. However, it may instead just operate as a negotiation strategy for upcoming bills, which could result in SALT remaining, being fully repealed, or landing somewhere in between. Again, we won’t really know until legislation is proposed.
Estate Tax
Many of you have heard that the federal estate tax exemption is going to be cut in half in December 2025. With Trump’s successful campaign, that’s probably not going to happen. Instead, TCJA will be extended and the exemption amount will likely increase from its current $13.61M for individuals and $27.22M for married couples. If your estate is close to either of these amounts, respectively, then we should have a talk about your current estate plan structure and what can be done to assist you to get assets outside of your taxable estate.
Trump Tax Policies © 2024 by Durfee Law Group is licensed under CC BY 4.0 
Trump Tax Policies