Let’s chat about what comes next…. With a new presidential administration in office, we can expect changes to the tax laws.
It’s as inevitable as death and … well, taxes.
In this post, I’m going to go over what you can do now to plan for change when you don’t know what that change will look like!
Tax Uncertainty
With so much uncertainty around taxes, you might be wondering what to expect for 2021 and beyond.
We’ve seen President Biden’s proposed tax plan, and we know changes are coming. But we don’t know exactly what will be signed into law, or even when that might happen.
So how can we prepare now when we’re not sure what to expect?
Here are three ways you can take action now to help prepare yourself for potential new tax laws:
- Take advantage of the current tax laws where they favor you. If you haven’t updated your estate plan or tax plan recently, this is an excellent time to do it so that you can potentially maximize your tax savings before the rules change.
- Keep an eye on what’s coming. Sometimes that’s easier said than done. There’s a lot going on in the world, and it can be hard to keep up with every update.
This is just one of the advantages of working with a financial professional — it’s my job to be aware of what’s happening, and I can keep you informed of upcoming changes that could affect your financial picture. - Get comfortable with change. Tax laws change all the time. In fact, one estimate found that the tax code has been updated over 4,600 times since 2001 alone.1
Some changes will be favorable to you, and some won’t. You need to create a strategy that takes a long-term view so that the individual changes aren’t quite so disruptive.
A reminder—you don’t have to be in this alone.
Another reason you should work with a professional who looks after your financial life is so you can share your worries and have someone help you take action.
1https://taxfoundation.org/how-many-words-are-tax-code/
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues
