After 2 or 3 years of tax uncertainty, the holding pattern is over. Politics aside, nothing has happened in tax policy for way too long. We’ve been living with pending questions, uncertainty about TCJA extensions, and lack of guidance and information from the IRS. After coming off way too long of the M.I.A. super slow IRS due to “Covid”. It’s all been frustrating from where I’ve sat at my desk as a tax professional.
Trump presidency, plus GOP Senate, plus GOP House should give the American taxpayer a direction and an expectation for 2025 and beyond.
My predictions:
TCJA extensions are on deck.
No increase in the tax rates.
Standard deductions should go up.
SALT looks like it is coming back.
100% Bonus depreciation should be coming back.
QBI (199A replacement) should be extended.
AMT updates.
WILD CARDS:
Cutting taxes on Social Security payments.
No taxes on overtime pay!
No taxes on tips!
Fixing the R&E (174) Deduction provision.
Enhancing the R&D Credits overall.
Bringing back DPAD.
DARE TO DREAM:
Putting us into new careers! IRS dismantled, no income taxes, slashed federal government budget, a new replacement tariffs regime, not having to play a 4th Amendment and 5th Amendment mental gymnastics game for the IRS…
We are reaching out to our local congressional office to see what help we can provide. I am not sure what the next two to six months will bring as far as tax policy, but at least we can put “unrealized capital gains” to bed as an insane fiction for a future dystopia. It’s hard enough to pay taxes and pay inflation right now for most of America.
All the best,
Jimmy