Investment Updates For The New Year

As the new year starts, it’s crucial to consider personal financial planning updates, especially in light of potential legislative changes.

TJCA Sunsetting in 2026

The Tax Cuts and Jobs Act (TJCA) is set to sunset in 2026, impacting tax brackets and the lifetime gift and estate tax exemption. With the historically high $13.6 million lifetime exemption for 2024, estate minimization techniques become necessary for some investors. Gifting now, before the potential halving of the exemption in 2026, provides an opportunity without the risk of a clawback.
For those with a net worth over $4-$5 million, exploring minimization techniques in the next year or so is advisable. Including Opportunity Zone Funds in Grantor Trusts can be beneficial, as they don’t pose the downside of beneficiaries facing taxable capital gains.

Reversion to Pre-TJCA Tax Rates

The historically low tax brackets set by TJCA are expected to revert to pre-TJCA tax rates. Shifting income into the next two years could be a prudent move for many individuals. Roth Conversions are one way to implement this strategy.
This year is opportune for discussions with advisors to enact longer-term financial planning strategies that align with potential legislative changes.

Take Advantage Of The New Year

Looking forward to the future months, we’re dedicated to steady growth, financial stability, and providing value to our investors. The journey continues into the new year, with an unwavering commitment to navigating the ever-evolving landscape of opportunity zones and ensuring our investors are well-positioned for success. Ready to join us on this journey? Reach out today to explore the opportunities that lie ahead.