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Retirementis a major life change.
However, there is one thing that could affect your finances if Donald Trump is voted back into office.
The TCJA has many income and estate tax implications and it is supposed to sunset in 2026.
This creates many tax and estate planning opportunities thatimpact almost everyone who is retiring in 2025, he said.
The TCJA permanently cutcorporate tax rates, but only temporarily slashed individual tax rates.
The legislation affected businesses by changing deductions, depreciation, expensing, tax credits and other tax items.
He said retirees could be most affected by the expiration of the TCJA in the following three ways.
If you fit into this category, your tax liabilities could go up.
Decrease in Standard Deductions
A decline in the standard deduction could mean a higher tax bill, he said.
If TCJA sunsets, the standard deduction could be cut by almost half.
This could mean you ultimately end up paying more to Uncle Sam.
This limit would increase to $1 million if TCJA expires as currently scheduled.
Depending on the size of your mortgage, this could be beneficial.
This means retirees with a mortgage of over $750,000 would benefit if TCJA sunsets, he said.
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