You’ve probably heard the saying, “in this world nothing can be said to be certain, except death and taxes,” (Did you know that Benjamin Franklin was the one who wrote that?) So, on this episode of the podcast, we’re talking about taxes. More specifically, Shannon Estate Planning Lawyer Shannon McNulty is talking about the potential tax changes we’re likely to see in 2021.
Taxes Typically Change When There is a Change in Political Landscape
With the change to the presidential administration and all 3 branches of the government being led by Democrats, we’re likely to see a number of changes to the budget and also to the tax rate. Shannon shares what changes we’re likely to see and reminds us that a tax rate change isn’t likely to affect the middle and upper-middle class, but rather those that are the highest earners. She also discusses the potential changes to corporate taxes and real estate capital gains taxes, and the potential impact from those, as well as other potential changes to be aware of.
Keep an Eye on Estate Taxes
There has already been a plan for the amount of the Estate Tax Exemption to decrease from where it is now, but Shannon mentions that we could see this come about sooner than the planned 2025 timeline. It’s always important to discuss your estate plans with an attorney who specializes in estate plans, especially when taxes may be changing. For now, most of us can sit tight, stay aware, and reach out to professionals later this year when these changes are likely to have been confirmed.
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