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IRA Financial Blog

Big Tax Code Changes Coming Soon – Episode 431

Adam Talks

On this episode of Adam Talks, Adam Bergman, Esq. discusses the sun-setting of provisions that arose from the 2017 Tax Cuts & Jobs Act that will expire next year and how it may impact your tax bill.

Big Tax Code Changes Coming Soon

This episode of Adam Talks discusses upcoming potential tax code changes set to occur at the end of 2025, related to provisions from the 2017 Tax Cuts and Jobs Act during the Trump administration. Various key provisions, such as marginal tax rates, standard deductions, child tax credit, and estate and gift tax, are highlighted. It is emphasized that no definitive outcomes can be predicted due to factors like the upcoming elections and control of Congress. The potential impacts on taxpayers, including the need for reassessment and potential increase in tax payments, are outlined.

A significant focus is placed on specific provisions like the potential sunset of the 2017 tax cuts, which could lead to changes in marginal tax rates, standard deductions, and child tax credits. The complexity and potential implications of these changes, including the impact on estate planning and tax liabilities, are discussed. The estate and gift tax, as well as the deduction for state and local taxes, are highlighted as key areas of interest that may undergo adjustments depending on future political decisions.

Adam Bergman, founder of IRA Financial, speculates on the potential outcomes based on different political scenarios, suggesting that if the Democrats win the election, there might be changes to the estate and gift tax, among other provisions. The discussion also touches upon the 20% pass-through deduction, the Alternative Minimum Tax (AMT), and the corporate tax rate, pointing out potential shifts or continuations in these areas. The implications for individuals, especially regarding estate planning and tax liabilities, are highlighted as areas of concern for taxpayers.

Throughout the episode, Bergman emphasizes the uncertainty surrounding these potential tax code changes and the need for individuals to stay informed and prepared for adjustments that may impact their financial situations. The importance of understanding these provisions and their potential consequences is underscored, particularly for those with higher incomes or significant assets. The episode serves as a detailed overview of the possible tax code changes and their implications for taxpayers, urging individuals to stay informed and engaged with the evolving tax landscape.

The impact of the 2017 tax provisions potentially expiring or being revised is highlighted, indicating that these changes could result in increased tax liabilities for individuals and families. The discussion also delves into the historical context of the tax cuts and the potential reverting to pre-2017 levels if the provisions sunset. Bergman addresses the complexity of tax filing before the Trump tax cuts and the simplification that occurred as a result, underscoring the potential challenges that may arise if these provisions are altered or eliminated.

Overall, Bergman provides a comprehensive overview of the potential tax code changes looming ahead and the uncertainties surrounding their outcomes. He offers insights into the possible impacts on various tax provisions, urging individuals to consider the implications for their financial planning and tax obligations. The discussion underscores the importance of staying informed about these potential changes and being prepared for adjustments that may affect tax liabilities and financial strategies in the future.

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