Forbes Floats Tax Strategies for 2017

According to a recent article in Forbes, tax strategies are akin to roulette – you have to place your bets before the marble stops spinning. You get it right, you win. You get it wrong, you lose. The marble in this analogy is Congress and the roulette wheel is the Internal Revenue Code. The article’s educated guess is that the Republicans, enjoying their legislative majorities, will cut tax rates but shrink deductions and similarly refashion wealth transfer taxes.

While significant changes in any of these areas would hamper existing tax strategies, they would also create a world of opportunities – that is if the educated guesses turn out to be correct.

Tax Strategies for a Trump/Ryan Tax Plan

One proposition, according to the author’s citation, that has a 75% probability of being enacted is the one shared by President-Elect Trump and House Speaker Paul Ryan: a repeal of the 3.8% ObamaCare surtax on investment income and a 33% top individual income tax bracket.

Income

Should this eventuality come to pass, and should it be retroactively made effective for January 1st 2017, the author suggests pushing income from 2016 into 2017. But, he warns, the taxpayer should be prepared to push income from 2017 into 2018 if the 33% rate kicks in in 2018.

Deductions

He also advises to push deductions in the other direction, because if Trump’s plan to limit Schedule A deductions to $200,000 per couple comes to pass, incremental writeoffs would be made worthless. House Speaker Paul Ryan, meanwhile, plans to erase itemized deductions except for mortgage interest and charity – which would also make it worthwhile to get all the deductions you can now.
More “Tax Strategies For The Trump/Ryan Plan” can be found here.

Tax Strategies from the Professionals at Cohen & Burnett

Rather than rolling the dice, or spinning the roulette wheel, we suggest speaking about tax strategies with a tax professionals at Cohen & Burnett. We have been advocates and guides for countless clients in our 25 years in and around Washington, D.C. With a diverse array of estate planning and tax services and a staff that specializes in personalized attention, we are confident that we can answer any questions and allay any concerns you may have. Contact us today to learn more.

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