Regardless of what side of the political spectrum you fall on — or whether you’d prefer to flee the spectrum altogether — this much is true of any proposed tax plan, regardless of what administration takes the credit (or the heat) for it: until it officially passes and becomes legislation, consider everything to be written in pencil, since it’s not a question of if things will change, but a matter of when they’ll change and to what extent.
Yet with this being said, all government proposals — for better and for worse — lay the groundwork and set the framework for the furious political horse trading that follow. With this in mind, and realizing once again that things are certainly going to change over the coming months and probably years, here are the key highlights of the Trump Administration’s recently-proposed tax plan as it would impact individual filers:
Yet again, it bears repeating: there is a 99 percent chance (or better yet, make that 100 percent) that some or possibly all of these proposed changes to the tax law will, themselves, be changed. We’re a long way from the finish line, and as we all know, “speed to market” is not in Washington DC’s playbook.
For the foreseeable future, the same standard wisdom applies: if you have a complex tax return, then work with a CPA to make sure that you’re in full compliance, and that you’re maximizing your allowable deductions. And of course, if you’re being examined at or audited by the IRS, or you want to proactively tell the IRS about some offshore accounts, undeclared income, excessive deductions and that kind of thing, seek the advice of a tax lawyer now — not later.