What You Must Know about the Future of Trump’s Tax Cuts
For Individuals
- Tax Cuts Expire in 2025: Lower income tax rates, a higher standard deduction, and the expanded Child Tax Credit will end, potentially increasing your tax burden.
- Deductions and Credits: Popular deductions like mortgage interest and medical expenses may change. Plan now to maximize current benefits.
For Businesses
- Permanent Corporate Tax Rate: The 21% corporate tax rate is here to stay. Continue using this in your long-term planning.
- Expiring Provisions: Key benefits, such as 100% bonus depreciation, begin phasing out soon. Review your tax strategies now.
- Pass-Through Deduction Ends in 2025: The 20% deduction for pass-through entities expires, so assess your business structure and income impact.
Next Steps
- Monitor Legislative Changes: Stay updated on potential extensions or revisions by Congress.
- Review Financial Plans: Consult with tax professionals to adjust your strategies before the TCJA provisions expire.
