With the presidential elections and the latest electoral vote confirmations now over, we are faced with the possible reality of what may come to be whether we like it or not. Donald Trump is now going to be the next President of the United States. So what does this mean to us in regards to our taxes? Should we be preparing for our next tax filing or should we be packing to move to Canada? Unfortunately, Canada as good as it may sound, is not a viable option if you have assets, businesses and a life here in the United States. During his election campaign, Mr. Trump promised to change many laws and some of the proposed changes directly affect the current tax system as it stands and will also possibly affect our pockets.
Some of the proposed changes to our tax system may sound as illogical as rounding up millions of undocumented immigrants and bussing them out of the country. While some of the proposed changes may not be beneficial, they will probably be put in place before the next election. Some of the changes promise to impact Individual Tax Rates and Capital Gains Taxes for individuals. Filing statuses, like the Head of Household status, would no longer be available under the new tax plan. The alternative minimum tax on individual taxpayers would also be gone and while many of us hate this extra tax, it was put into place to prevent the rich from benefiting while lower income taxpayers pay more taxes. Among other changes, President-Elect Trump is proposing to get rid of the Estate Tax, make changes to the Standard Deduction and itemized deductions while also getting rid of personal exemptions.
So we are left asking ourselves, Can any of this actually happen and how soon? Even with a Republican dominated congress and senate, there will be much opposition from the Democratic Party. We will just have to wait and see what happens and for now try to prepare for what is most likely to happen. Mr. Trump could change his mind on any of these issues.
We can only be sure of one thing at this time. With the Republicans controlling the House, Senate and White House, taxes are likely to go down in 2017. Of course we cannot be certain. For those of you who are able, there is still time to defer income to 2017 in order to minimize 2016 taxes. Another year-end tip is to increase itemized deductions in 2016, again to minimize 2016 taxes.
Here at Midge L. Belcourt CPA, our mission is to serve our clients by offering Tax Preparation for Individuals, Small Businesses and Corporations as well as Accounting services. We can help you with the unknowns that are yet to come when they arrive. We are a small-town Tax & Accounting firm with a global reach. Located in the Acton-Boxborough area, we serve all of New England and have served clients in countries like France, United Kingdom, India, Cambodia and many other countries around the world. Call us now at 978-263-0212 or visit our website at www.BelcourtCPA.com.