Trump Tax Cuts Expiring after 2025

[stollcpa]

This will be addressed by the next president. Probably the biggest one expiring in my mind is the Qualified Business Income Deduction (QBID). This deduction allows pass through entities to exclude 20% of their profits from tax. Marginal tax rates big. The estate tax exemption amount goes to approximately $13.61 million for individuals and $27.22 for married couples in 2024. This will drop by about 1/2. This affects many more people than you would imagine.

@twenty02 what do you think

https://www.cnbc.com/2024/06/18/plan-for-expiring-trump-tax-breaks.html

 

[mcmurtry66]

This will be addressed by the next president. Probably the biggest one expiring in my mind is the Qualified Business Income Deduction (QBID). This deduction allows pass through entities to exclude 20% of their profits from tax. Marginal tax rates big. The estate tax exemption amount goes to approximately $13.61 million for individuals and $27.22 for married couples in 2024. This will drop by about 1/2. This affects many more people than you would imagine.

@twenty02 what do you think

https://www.cnbc.com/2024/06/18/plan-for-expiring-trump-tax-breaks.html

qbi will hurt many lower earning self employed single member llcs etc. the total income is pretty low so i imagine many don't qualify or only do so with more involved requirements for deductions for biz

 

[stollcpa]

qbi will hurt many lower earning self employed single member llcs etc. the total income is pretty low so i imagine many don't qualify or only do so with more involved requirements for deductions for biz

Businesses have gotten used to this deduction. They have invested in their businesses and spent personally based on the extra cash flow the QBID generated.

The last two years I had special written communications with my business clients telling them exactly the tax savings from QBID. I warn them about the looming changes. I know every one of them will raise hell. I will be sending them the written correspondence warning them.

 

[NPT]

This will be addressed by the next president. Probably the biggest one expiring in my mind is the Qualified Business Income Deduction (QBID). This deduction allows pass through entities to exclude 20% of their profits from tax. Marginal tax rates big. The estate tax exemption amount goes to approximately $13.61 million for individuals and $27.22 for married couples in 2024. This will drop by about 1/2. This affects many more people than you would imagine.

@twenty02 what do you think

https://www.cnbc.com/2024/06/18/plan-for-expiring-trump-tax-breaks.html

Darn stoll, the one that is gonna hurt you the most may be the federal estate and gift tax exemption dropping from over 13 million to who knows what. 🤣

 

[stollcpa]

Darn stoll, the one that is gonna hurt you the most may be the federal estate and gift tax exemption dropping from over 13 million to who knows what. 🤣

No it’s no problem. Ex wife took care of that problem. 😂

 

[twenty02]

This will be addressed by the next president. Probably the biggest one expiring in my mind is the Qualified Business Income Deduction (QBID). This deduction allows pass through entities to exclude 20% of their profits from tax. Marginal tax rates big. The estate tax exemption amount goes to approximately $13.61 million for individuals and $27.22 for married couples in 2024. This will drop by about 1/2. This affects many more people than you would imagine.

@twenty02 what do you think

https://www.cnbc.com/2024/06/18/plan-for-expiring-trump-tax-breaks.html

Too early to say. I would like to see the estate tax made permanent at whatever level is decided upon. These wild swings in potential outcomes are the result of using budget reconciliation tax bills over the last 25 years. I don't really care much about using them to fiddle with top marginal rates between 35 and 40...... But fkn with estate tax exemption levels is ridiculous. People should be able to plan estates with more certainty than what we've seen over the last decades.

QBDi is going hinge on who is in control. Dems would pare it back, but nobody will do it too much as it has to keep parity with tax burdens of C Corps. I don't see a big desire to raise Corp taxes. Maybe a bit but nowhere back to the pre 2017 levels.

We're in a bad situation with fiscal bombs already going off. I think we have to inflate our way out of debt long term. People who own assets (stocks /real estate/small biz) will do fine. Those that own nothing are going to be really hurting.

 

[stollcpa]

Too early to say. I would like to see the estate tax made permanent at whatever level is decided upon. These wild swings in potential outcomes are the result of using budget reconciliation tax bills over the last 25 years. I don't really care much about using them to fiddle with top marginal rates between 35 and 40...... But fkn with estate tax exemption levels is ridiculous. People should be able to plan estates with more certainty than what we've seen over the last decades.

QBDi is going hinge on who is in control. Dems would pare it back, but nobody will do it too much as it has to keep parity with tax burdens of C Corps. I don't see a big desire to raise Corp taxes. Maybe a bit but nowhere back to the pre 2017 levels.

We're in a bad situation with fiscal bombs already going off. I think we have to inflate our way out of debt long term. People who own assets (stocks /real estate/small biz) will do fine. Those that own nothing are going to be really hurting.

You nailed it. Thanks for the response.

 

[mcmurtry66]

Too early to say. I would like to see the estate tax made permanent at whatever level is decided upon. These wild swings in potential outcomes are the result of using budget reconciliation tax bills over the last 25 years. I don't really care much about using them to fiddle with top marginal rates between 35 and 40...... But fkn with estate tax exemption levels is ridiculous. People should be able to plan estates with more certainty than what we've seen over the last decades.

QBDi is going hinge on who is in control. Dems would pare it back, but nobody will do it too much as it has to keep parity with tax burdens of C Corps. I don't see a big desire to raise Corp taxes. Maybe a bit but nowhere back to the pre 2017 levels.

We're in a bad situation with fiscal bombs already going off. I think we have to inflate our way out of debt long term. People who own assets (stocks /real estate/small biz) will do fine. Those that own nothing are going to be really hurting.

That’s the real deal son

 

[hoot1]

This will be addressed by the next president. Probably the biggest one expiring in my mind is the Qualified Business Income Deduction (QBID). This deduction allows pass through entities to exclude 20% of their profits from tax. Marginal tax rates big. The estate tax exemption amount goes to approximately $13.61 million for individuals and $27.22 for married couples in 2024. This will drop by about 1/2. This affects many more people than you would imagine.

@twenty02 what do you think

https://www.cnbc.com/2024/06/18/plan-for-expiring-trump-tax-breaks.html

The next president???

Isn't it about time for Congress and both parties to step up to the plate about the deficits ?

Almost all the spending and tax cuts which have previously been passed under the banner of Paying for Themselves should be under scrutiny.

 

[snarlcakes]

We're in a bad situation with fiscal bombs already going off. I think we have to inflate our way out of debt long term.

I obviously agree and came to that conclusion a couple of years ago. Nothing stops this train.

People who own assets (stocks /real estate/small biz) will do fine. Those that own nothing are going to be really hurting.

I agree with assets, but can you expand on small biz? I think they’ll struggle in a higher inflationary environment and the beneficiaries will be large corporations who have the ability to deal with it better. Is there any data from the 70s?

 

[stollcpa]

The next president???

Isn't it about time for Congress and both parties to step up to the plate about the deficits ?

Almost all the spending and tax cuts which have previously been passed under the banner of Paying for Themselves should be under scrutiny.

I think until they are ready to sit down and do that serious work they need to extend the 2017 Tax Cuts and Jobs Act.

 

[hoot1]

I think until they are ready to sit down and do that serious work they need to extend the 2017 Tax Cuts and Jobs Act.

IMO when they sit down, everything should be on the table.

 

[Marvin the Martian]

IMO when they sit down, everything should be on the table.

I agree. The government will have to spend less, and someone somewhere will have to pay more. There is no way around both of those. The more sacred cows we have, the more impossible this becomes.

 

[mcmurtry66]

I obviously agree and came to that conclusion a couple of years ago. Nothing stops this train.

I agree with assets, but can you expand on small biz? I think they’ll struggle in a higher inflationary environment and the beneficiaries will be large corporations who have the ability to deal with it better. Is there any data from the 70s?

Small biz gets lots of advantages. If we get rid of Biden I’ll go by a big Range Rover or defender. You get to write a shit ton of It off bc over 6000 lbs for biz. Equipment purchases. There’s all kinds of tax benes you get with w small biz