Tax Planning for the Expiration of the TCJA 02-08-2024
Add Addon
On
Tax Planning for the Expiration of the TCJA
Presented by Larry Pon, CPA,
The expiration of the Tax Cuts & Jobs Act (TCJA) is right around the corner on December 31, 2025. In this webinar, Larry Pon, CPA talked about possible tax planning moves before December 31, 2025 and how to be prepared for different tax planning strategies in 2026. Larry also shared insights as to how you need to be prepared for major changes in estate planning such as the expected reduction in the lifetime exclusion. Larry also addressed the expected reduction in the standard deduction and how clients will need to itemize on Schedule A.
Attendees Comments:
A few comments from listeners when they were asked what the learned from the webinar:
I was surprised to learn that if an individual gives a gift in the form of a check and the check is not cashed by the end of that calendar year, it will be considered an incomplete gift for gift tax purposes. Larry's tip was to use Cashier's Checks, Venmo, etc. to make sure the gift is completed during the year.
- Rhonda G.
Going to formulate a mid-year letter for my clients highlighting several of the issues that will affect them upon sunset... tell them now and tell them repeatedly over the next couple of years so that it sinks in (because tax language truly goes over most of their heads, and they'll admit it!)
- Jen H.
Build back basis- I had never heard or thought of this. Very clever, need to get over the 1-year hurdle of the done after gift, but if not, basis reverts back to the original basis of the donor.
- Marian J.
"Shame on me that I hadn't recalled that gift checks needed to have been cashed in same year as given! Good reminder. Just b/c it wreaked a bit of havoc on client's acct when cks were finally cashed, we have since requested bank info so we can deposit directly.
We have a few clients who may have ISOs, so will review those and start considering taking action before 2026.
Fascinating to learn individual taxes make up most of federal revenue....WOW!"
- Meg C.
I was surprised to learn that if an individual gives a gift in the form of a check and the check is not cashed by the end of that calendar year, it will be considered an incomplete gift for gift tax purposes. Larry's tip was to use Cashier's Checks, Venmo, etc. to make sure the gift is completed during the year.
- Rhonda G.
Going to formulate a mid-year letter for my clients highlighting several of the issues that will affect them upon sunset... tell them now and tell them repeatedly over the next couple of years so that it sinks in (because tax language truly goes over most of their heads, and they'll admit it!)
- Jen H.
Build back basis- I had never heard or thought of this. Very clever, need to get over the 1-year hurdle of the done after gift, but if not, basis reverts back to the original basis of the donor.
- Marian J.
"Shame on me that I hadn't recalled that gift checks needed to have been cashed in same year as given! Good reminder. Just b/c it wreaked a bit of havoc on client's acct when cks were finally cashed, we have since requested bank info so we can deposit directly.
We have a few clients who may have ISOs, so will review those and start considering taking action before 2026.
Fascinating to learn individual taxes make up most of federal revenue....WOW!"
- Meg C.
I was surprised to learn that if an individual gives a gift in the form of a check and the check is not cashed by the end of that calendar year, it will be considered an incomplete gift for gift tax purposes. Larry's tip was to use Cashier's Checks, Venmo, etc. to make sure the gift is completed during the year.
- Rhonda G.
Going to formulate a mid-year letter for my clients highlighting several of the issues that will affect them upon sunset... tell them now and tell them repeatedly over the next couple of years so that it sinks in (because tax language truly goes over most of their heads, and they'll admit it!)
- Jen H.
Build back basis- I had never heard or thought of this. Very clever, need to get over the 1-year hurdle of the done after gift, but if not, basis reverts back to the original basis of the donor.
- Marian J.
"Shame on me that I hadn't recalled that gift checks needed to have been cashed in same year as given! Good reminder. Just b/c it wreaked a bit of havoc on client's acct when cks were finally cashed, we have since requested bank info so we can deposit directly.
We have a few clients who may have ISOs, so will review those and start considering taking action before 2026.
Fascinating to learn individual taxes make up most of federal revenue....WOW!"
- Meg C.