How Advisors Are Preparing Clients for Trump’s Tax Plans
Though nobody knows exactly how presidential and congressional proposals will play out, financial advisors are recommending clients take steps now to prepare for any tax changes that may lie ahead. “We think this a policy shift of enormous magnitude. If Reagan was a Richter 8, this is a Richter 9,” said Leon LaBrecque, a certified public accountant and a certified financial planner as well as managing partner and CEO of LJPR Financial Advisors. Given what we know about these proposals, the tax advice is “very simple,” said Roger Stinnett, a CFP, CPA and director of financial planning at Westmount Asset Management. “Defer income and accelerate deductions. Rates will likely go down,” he said. Proposals by President-Elect Donald Trump and House Republicans have many similarities. Both plans call for simplifying the personal income tax code from seven to three brackets: 12, 25 and 33 percent. The tax plans also want to more than double the standard deduction from $6,300 to $15,000 for single filers and from $12,600 to $30,000 for married couples filing jointly.
David Wingate is an elder law attorney at the Elder Law Office of David Wingate, LLC. The elder law office services clients with powers of attorneys, living wills, Wills, Trusts, Medicaid and asset protection. The Elder Law office has locations in Frederick and Montgomery Counties, Maryland.