In recent years, while there may have been volatility in tax rates, the basic income tax
landscape for individuals, trusts, and estates has remained relatively constant. The passage
of the 2017 Tax Act1 at the close of 2017 significantly altered the planning landscape for 2018
and beyond. This new terrain has prompted advisers and taxpayers alike to pause, look
around, become familiar with these new surroundings, and rethink how to navigate in this
new tax environment.
As you plot a course forward, you may encounter new sights along the path, such as the
qualified business income deduction. Views that seem familiar from afar may look a little
different upon closer inspection, such as the increased ability to offset income with charitable
contributions or the decreased ability to deduct state and local income taxes. Finally, you
may begin to notice that there are things that are now missing, such as personal exemptions,
miscellaneous itemized deductions, and alimony.
Of note, many tax reform provisions will be around for a relatively short period of time.
Most provisions described herein will sunset on December 31, 2025, at which time this new
tax planning landscape will revert back to the landscape we were familiar with before the
enactment of the 2017 Tax Act.
This chapter of the Guide addresses the new tax planning landscape in order to chart a path
toward an efficient tax result.
Feel free to review the topics below to better understand how Nugent & Associates can help you.