WHAT WILL HAPPEN IN 2025?
Here is what we do and don’t know. It’s likely that much of the 2017 law will be extended. That includes returning to 100% bonus depreciation in 2025 and beyond as well as full deduction for research and development expenses. The 20% pass-through deduction likely is safe as is the 21% corporate tax rate. Capital gains rates will stay where they are as will most income tax rates. And many of the tax benefits for renewable energy could be clawed back. What we don’t know is what will happen with the SALT deduction and with many of President Trump’s campaign promises, such as not taxing tips, overtime pay and social security. Unless the Republicans agree to higher deficits, these provisions are unlikely to be fully enacted. They also represent a less-than-ideal tax policy. Most important is that you have a flexible wealth and tax strategy and a great relationship with a strong tax advisor who is a CPA. CPA’s have a broad base of knowledge and are excellent at running numbers and projecting different tax planning scenarios. They work with many different business clients and see lots of different situations. Their job is to advise you on the best course of action for your specific situation. A good CPA will be willing to work with the rest of your team, including your attorney, insurance agent and bookkeeper. Don’t be swayed by highly marketed tax advisors who don’t have the qualifications of a good CPA. And beware of tax scams. The general rule is that someone is going to get taxed on the income you earn. Your job is to make sure it’s taxed at the lowest rate possible.
THE 20% PASS-THROUGH DEDUCTION LIKELY IS SAFE AS IS THE 21% CORPORATE TAX RATE.
TOM WHEELWRIGHT®, CPA CEO WealthAbility
Tax and wealth expert Tom Wheelwright® is a CPA, CEO of WealthAbility®, Rich Dad Advisor, entrepreneur, international speaker, and author of the bestselling books The Win-Win Wealth Strategy and Tax-Free Wealth. Wheelwright is the CPA for Robert Kiyosaki and has spoken on stage on six continents to over 100,000 entrepreneurs, small business owners and investors. He also is the host of two popular podcasts: The WealthAbility® Show with Tom Wheelwright® CPA and The WealthAbility® for CPAs Show.
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