This video highlights some of the most impactful updates from the newly passed tax bill and what they could mean for your financial plan. While the full legislation is extensive, we focus on the changes most relevant to individuals and business owners.
Key updates include the permanent extension of several provisions from the 2017 tax reform, such as the higher standard deduction and the qualified business income (QBI) deduction. The bill also temporarily raises the cap on state and local tax (SALT) deductions from $10,000 to $40,000, offering potential relief to those in high-tax states or with significant property taxes.
Charitable contribution deductions are also being adjusted. Future rules may make deductions less favorable, encouraging some taxpayers to consider accelerating planned giving. At the same time, charitable deductions may become available to those who take the standard deduction, broadening access to this benefit.
These updates serve as a reminder to review your financial strategy and consult with an advisor to ensure you’re making the most of the opportunities this bill presents.
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