Michael Kitces on Potential Tax Law Changes

Financial planning blogger put together the best analysis we've read on the House Republicans' proposed tax law changes. Kitces delves into what's on the table for myriad provisions including the following topics:

  • Individual Tax Brackets
  • Alternative Minimum Tax (AMT)
  • Capital Gains and Qualified Dividends
  • The Standard Deduction + Child Tax Credits
  • Limiting Itemized Deductions + Tax Credits
    • State and Local Taxes
    • Casualty and Gambling Losses
    • Medical Expenses
    • Miscellaneous Itemized Deductions
    • The Electric Car and Adoption Tax Credits
  • Alimony Tax Treatment
  • Homeownership
    • Mortgage Interest Deduction
    • Capital Gains Exclusion
  • Employee Fringe Benefits
  • 529s and Other Education Tax Incentives
  • Pass-Through Business Tax Rates
  • Roth Conversion Strategies
  • Gift & Estate Tax Exemption

The proposed changes are a long way from becoming law. And if legislation is enacted, the details are likely to shift from the current proposal.

If tax laws do change, then we will address how they may affect financial planning issues and/or portfolio strategies. Until then, no one should alter their approach to taxes just yet.  

Read Kitces's whole post here