Post-Election Tax Changes - How Will they Affect Your Family?
9 November 2016
Yesterday, the American voters elected Donald J. Trump to be the 45th President of the United States. Mr. Trump has promised across-the-board tax cuts; the challenge for his administration will be finding a way to pay for these cuts. Call Rigby Financial Group to find out how the Trump tax proposals could affect your individual tax situation, and how to plan to maximize the potential benefits while mitigating possible adverse tax consequences.
1. The Proposed Tax Changes
Some of the proposed changes would:
• Consolidate the individual income tax brackets from seven to three: 12% on income up to $75,000, 25% for income between $75,000 and $225,000, and 33% for income above $225,000
• Retain the current capital gain tax structure, but tax carried interest in private equity investments as ordinary income
• Repeal the Affordable Care Act, and with it the associated additional Medicare tax, net investment surtax, medical devise excise tax, and the “Cadillac-plan” tax on high-cost health insurance plans
• Create an above-the-line deduction for child-care expenses, up to the average cost of such expenses in each taxpayer’s state of residence
• Create a similar deduction for elder care, to be capped at $5,000 annually
• Expand the earned income tax credit
• Repeal the estate tax, but tax estates’ unrealized capital gains above $10 million, and prohibit contributions of appreciated assets to any private charity established by a decedent or his/her relatives
These are by no means all the tax code changes Mr. Trump has proposed. He has not, as yet, articulated a clear plan for balancing decreased tax revenue with spending cuts. And we can be certain that, as with all significant tax-code changes, unintended consequences will ensue.
Call us today – Rigby Financial Group can help you ensure that you have planned well in advance – before the end of 2016 – to capture all available tax benefits, while planning for potential adverse tax consequences. We believe strongly in helping our clients protect themselves and their families – but action starts with you! Call us at (504) 586-3050 to get started on your personalized tax plan.
The above represents general advice. When it comes to tax and estate planning, one size does not fit all. Rigby Financial Group provides highly individualized, specifically tailored, comprehensive holistic plans for individuals and businesses. Please contact us for advice and assistance in creating a specialized plan that suits your unique situation.
The information presented here is not specific to any individual’s personal circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.