Sponsor spotlight Tax uncertainty requires preparedness

Taxpayers may face higher tax bills if Congress does not extend expiring credits and deductions. Individuals expecting income increases or with large estates should initiate tax planning sessions to mitigate liabilities. The estate exemption is set to decrease from $13. 99 million for single taxpayers to $5 million in 2026, prompting consideration of gifting strategies to reduce taxable estates. Small business owners must evaluate the potential loss of the Qualified Business Income deduction and its effects on their tax obligations.

Investments should be reviewed for tax efficiency, with strategies like tax-loss harvesting becoming increasingly important. Selling appreciated assets in 2025 could yield tax benefits if rates rise in 2026. By planning now, taxpayers can better navigate the anticipated changes in tax laws. Financial professionals like Nancy J. Ekrem emphasize the importance of preparedness in this uncertain tax environment.