With the election now over, so many of my clients are asking me about "rumors" they heard regarding Trump lowering taxes. Is this true? Overall, what he is proposing is true in that taxes for most will be lowered. Will it actually become law? I don't know because there's so much that goes into passing tax legislation. The President-elect can't just pass these laws by himself. He would need congress to go through the process of writing up the detailed tax law and passing it through various departments of Congress. It's not a simple process and can take many months for anything to come to fruition.
From what he is proposing, there are 6 things that caught my attention that would affect most of my clients.
Below is a video I made explaining the 6 biggest changes in Trump's new tax plan.
Unfortunately, the title is correct. As most will see when looking at your pay stub, you'll see all kinds of taxes being taken out. What most don't know is that the various taxes you see come out of your pay stub doesn't apply to other types of income, such as rental income.
The IRS sees income in two different categories - Earned Income and Passive Income.
Infographic explaining a possible tax resolution if a person owes way too much money to the IRS that, realistically, can't pay it all off - Offer in Compromise.
Most of my clients get hit with the dreaded Alternative Minimum Tax (AMT). This is an additional tax that people have to pay on top of their regular income tax if the taxpayer meets certain rules.
Here are the common things I see across my client base on who usually gets hit with AMT:
Below are videos I created to help explain it better. I hope it helps!