There is no hiding; we are in an election season. Social media, cable news outlets and print news mediums are abuzz with a continuous stream of 2024 presidential election content on an array of topics (some trivial and others particularly important). However, one such area that is highly relevant to selecting a U.S. president is the area of tax policy. With this in mind, now is the time to best understand the tax policy positions of each candidate.

In the upcoming live (free!) webinar Tax Policies of the Presidential Candidates, an expert panel of Wolters Kluwer tax experts will speak on this very important subject.

Pressing tax matters at hand

In the last election of 2020, there were few tax policies at play between the two presidential candidates. That is not the case this time around. Due in part to the use of the budget reconciliation process in passing the Tax Cuts and Jobs Act of 2017 (TCJA), much of President Trump’s signature legislation comes with a built-in sunset date of 2025.

Only a small part of the TCJA is permanent. So, whoever wins the presidency this November will be tasked with working with Congress to decide what aspects of TCJA will be permanent versus what will regress back to the standards eight years ago.

TCJA deadlines in focus

With many TCJA sunsetting deadlines fast approaching, consumers will surely be calling/emailing/texting their respective tax pros shortly after election day for guidance on impacted areas such as:

• Individual taxation rates – Is change inevitable for the current TCJA tax brackets of 10, 12, 22, 24, 32, 35 and 37%?
• Capital gains/dividends – Will the TCJA capital gains rates of 0, 15, and 20% for capital gains and qualified dividends (based on individual status) change?
• Taxation of tips – What do each of the presidential candidates promise in this gig economy focused area of the economy?
• Social Security taxation – Will seniors have a reason for optimism in 2025?
• Child tax and earned income tax credits – Can taxpayers expect to retain or see increased credits related to these areas?
• Corporate tax rates – Will businesses that enjoyed the low 21% rate over the last eight years be in for a pleasant or unpleasant surprise as we enter 2025?
• Estate taxes – Will the double exclusion amounts for both estate, gift and generation-skipping transfer tax continue?
• International taxation – Where does each candidate stand on U.S.-connected income as well as industry specific tariffs (which are the primary forms of taxing foreign businesses)?

While the abovementioned areas (most of which are related to TCJA sunsetting provisions) are front and center on the minds of tax pros, they do not account for new proposals floated by each candidate over the last few weeks.

Be prepared for each presidential outcome scenario

In summary, as the campaigns of each candidate wind down, one will have to wait to learn which of the above-mentioned outcomes are most likely to occur. However, one does not have to stand still. NATP members are encouraged to attend a free, CPE credited live webinar Tax Policies of the Presidential Candidates on Thursday, Oct. 3, at 2 p.m. ET. Learn the tax policy specifics of both major presidential candidates (as we know them now) + much more.

Question: Robert and Suzanne were married. Robert is aged 71 and Suzanne was 74 when she died in 2023 following a long-term illness. They each had their own traditional individual retirement arrangements (IRAs), and Robert inherited Suzanne’s IRA as the sole designated beneficiary. Prior to her death, Suzanne started taking her required minimum distributions (RMDs) from her IRA account. How should Robert treat this inherited account?

Answer: Robert may treat Suzanne’s IRA account in one of two ways: (1) withdraw funds as if it was his own (2) withdraw funds as a beneficiary based on either of their life expectancies.

To treat the inherited IRA as if it were his own, Robert can roll over the inherited IRA assets into his own eligible retirement plan, including his IRA, and treat those assets as his own [§ 402(c)(8)(B)]. Since he is over the age of 59½, he can withdraw these assets anytime without a penalty. For RMD purposes, since Robert has not reached age 73, this option enables him to delay taking RMDs until he reaches age 73 rather than continuing Suzzane’s RMDs.

Since he is the sole designated beneficiary of the account, Robert has another option. He can remove the RMDs from Suzanne’ account based on his life expectancy. Since Suzanne died after the year 2020 and her required beginning date (RBD), the RMD is calculated based on the longer of Robert’s life expectancy or the distribution method used at her date of death.

Under the SECURE 2.0 Act, beginning in 2023, the RBD is April 1 of the year following the year in which the account owner reached age 73 for individuals who turn 72 after Dec. 31, 2022. It is age 75 for individuals who reach age 74 after Dec. 31, 2032.

The surviving spouse must withdraw funds over their life using Table 1 - Single Life Expectancy, Appendix B, Publication 590-B, based on their age at the end of the applicable distribution calendar year and recalculated annually. Or, if longer, they can use the deceased owner’s single life expectancy calculated in the year of death and reduced by one each year thereafter. (For aged 71, life expectancy factor as 18.0, for 2024, then use factor of 17.0).

Are you a tax professional eager to share your expertise? Writing for NATP’s TAXPRO magazine is a great way to contribute to the tax community. TAXPRO is a respected publication that provides tax professionals with essential insights and updates on industry trends, helping them stay informed and ahead of the curve.

Why write for TAXPRO?

Contributing to TAXPRO allows you to position yourself as a thought leader and enhance your reputation within the tax industry. By sharing your knowledge, you can help other tax professionals tackle current challenges, understand complex tax laws and improve their practices. It’s also an opportunity to give back to the community by offering practical solutions and tips.

What can you write about?

TAXPRO welcomes articles on a variety of topics relevant to tax professionals. You can write about tax law topics, ethical considerations or business management strategies. Other popular topics include new technologies for tax preparers and client relationship management. The goal is to provide practical, timely information that benefits fellow tax professionals.

Want to learn more?

If you are interested in writing or want to learn more, contact us at TAXPRO@natptax.com. We will reply to your email within two business days.