With the year-end rapidly approaching, you may have questions regarding how a Donald Trump presidential administration paired with a Republican-dominated Congress might impact your taxes for 2016 and beyond. Tax situations are different for everyone but a common thought process for the near future is to defer ordinary income to 2017 and accelerate deductions to 2016 when feasible and practical. In a very broad summary, here are some of the tax change proposals by either President-elect Trump and/or the GOP:
Individuals may expect these changes:
Businesses may expect these changes:
Based on the information available to us now and to the extent it is possible, deferring ordinary income to 2017 and accelerating deductions to 2016 appears to be an appropriate approach. For example, if there are charitable intentions you are considering for 2017 or an outstanding charitable pledge, it might make sense to fulfill that obligation in 2016. Because everyone’s tax situation is unique, if you are interested in doing any tax planning or would like more detail regarding President-elect Trump and/or the GOP’s positions on tax reform, please contact our office to discuss your specific tax planning needs and objectives.