We live in uncertain times. There is no certainty in what President Elect Trump will do when it comes to the tax code, but he has stated that he would like do the following:
- Eliminate the estate tax entirely.
- Eliminate the gift tax entirely.
- Presumably, eliminate the Generation Skipping Transfer tax entirely.
- Disallow a step-up in basis for the assets of decedents with estates over $10 million.
However, we don’t know if this will be a high priority or whether Democrats would filibuster such changes.
As far as income taxes go, he has proposed the following:
- Cap deductions at $100,000 for individuals and $200,000 for a married couple filing jointly.
- Increase the standard deduction to $15,000 for individuals and $30,000 for married filing jointly.
- Reduce the federal tax brackets from 7 to 3, with rates of 12%, 25%, and 33%.
Current estimates are that Trump’s tax plan would:
- Reduce taxes for low income earners by an average of 1.2%.
- Reduce taxes for highest income earners by 10.2%.
According to a piece in Fortune, Trump’s plan would add $5.3 trillion to the federal deficit over 10 years.
Contributed by Morris Hall, PLLC Arrowhead, Scottsdale and Phoenix Estate Planning Attorney and Partner, David T. Eastman.
About Morris Hall, PLLC:
At Morris Hall, PLLC we have focused our legal practice on estate planning for over 45 years. Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects. We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Carefree, Tucson, Oro Valley, Green Valley, Prescott, Sedona, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.