How the Expiring TCJA Tax Provisions Could Affect You
Several temporary provisions enacted under the Tax Cuts and Jobs Act (TCJA) are set to expire on December 31, 2025. These changes will significantly impact individuals, families, and businesses. With less than two years remaining, it’s crucial to start planning now before the sunset goes into effect.
The upcoming November 2024 election could impact whether these provisions are extended or if new policies will be introduced. Lower income tax rates, increased standard deductions, and the 199A qualified business income deduction are a few of the changes which could happen without congressional intervention. Regardless of the election, it’s crucial to understand how potential tax law changes could affect your financial planning and business strategies.
While most of the expiring provisions will impact individuals and families, businesses should also be informed of these coming changes. For example, the 199A or qualified business income deduction is set to expire on 12/31/2025. Additionally, bonus depreciation has historically been complex and has never been a permanent write-off. As of now, it’s scheduled to expire on 12/31/2028; given past trends, it’s likely legislators will revisit this beneficial tax provision in the future.
Additionally, there are changes expected to impact estate and gift taxes. For decedents passing in 2024, the exclusion amount is $13,610,000 per individual. Without Congressional action, this exclusion is expected to be reduced by roughly 50% as of 1/1/2026.
To help you easily digest the TCJA provisions set to expire and those which are not, we have created a comprehensive guide comparing the current TCJA provisions with what the tax landscape would look like if these TCJA provisions were allowed to expire.
How the Expiring TCJA Tax Provisions Could Affect You
Several temporary provisions enacted under the Tax Cuts and Jobs Act (TCJA) are set to expire on December 31, 2025. These changes will significantly impact individuals, families, and businesses. With less than two years remaining, it’s crucial to start planning now before the sunset goes into effect.
The upcoming November 2024 election could impact whether these provisions are extended or if new policies will be introduced. Lower income tax rates, increased standard deductions, and the 199A qualified business income deduction are a few of the changes which could happen without congressional intervention. Regardless of the election, it’s crucial to understand how potential tax law changes could affect your financial planning and business strategies.
While most of the expiring provisions will impact individuals and families, businesses should also be informed of these coming changes. For example, the 199A or qualified business income deduction is set to expire on 12/31/2025. Additionally, bonus depreciation has historically been complex and has never been a permanent write-off. As of now, it’s scheduled to expire on 12/31/2028; given past trends, it’s likely legislators will revisit this beneficial tax provision in the future.
Additionally, there are changes expected to impact estate and gift taxes. For decedents passing in 2024, the exclusion amount is $13,610,000 per individual. Without Congressional action, this exclusion is expected to be reduced by roughly 50% as of 1/1/2026.
To help you easily digest the TCJA provisions set to expire and those which are not, we have created a comprehensive guide comparing the current TCJA provisions with what the tax landscape would look like if these TCJA provisions were allowed to expire.
How the Expiring TCJA Tax Provisions Could Affect You
Several temporary provisions enacted under the Tax Cuts and Jobs Act (TCJA) are set to expire on December 31, 2025. These changes will significantly impact individuals, families, and businesses. With less than two years remaining, it’s crucial to start planning now before the sunset goes into effect.
The upcoming November 2024 election could impact whether these provisions are extended or if new policies will be introduced. Lower income tax rates, increased standard deductions, and the 199A qualified business income deduction are a few of the changes which could happen without congressional intervention. Regardless of the election, it’s crucial to understand how potential tax law changes could affect your financial planning and business strategies.
While most of the expiring provisions will impact individuals and families, businesses should also be informed of these coming changes. For example, the 199A or qualified business income deduction is set to expire on 12/31/2025. Additionally, bonus depreciation has historically been complex and has never been a permanent write-off. As of now, it’s scheduled to expire on 12/31/2028; given past trends, it’s likely legislators will revisit this beneficial tax provision in the future.
Additionally, there are changes expected to impact estate and gift taxes. For decedents passing in 2024, the exclusion amount is $13,610,000 per individual. Without Congressional action, this exclusion is expected to be reduced by roughly 50% as of 1/1/2026.
To help you easily digest the TCJA provisions set to expire and those which are not, we have created a comprehensive guide comparing the current TCJA provisions with what the tax landscape would look like if these TCJA provisions were allowed to expire.