As reported by multiple media outlets in the early morning of Nov. 6, 2024, Donald Trump will likely be elected the 47th president of the United States. While there are many unknowns yet with what a second Trump term means for taxes, there are topics we know he’s discussed during his campaign.
2017 Tax Cuts and Jobs Act extension
a. The signature achievement of Trump’s first term, some expect regulations of the 2017 TCJA could be extended, which could have major tax implications for individuals and businesses. The decision to allow these provisions to expire is sure to be one of the top discussions in the early days of Trump’s second term. See the Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97) for a list of provisions enacted by the TCJA as well as budget impacts.
SALT deductions
a. Trump expressed a willingness to revisit the $10,000 limit on state and local tax deductions enacted as part of the TCJA.
R&D expenditures
a. Trump and his Republican Congress will likely look to restore the Section 174 deduction for research and development expenditures.
Eliminating taxes on tips of restaurant and hospitality workers
Eliminating taxation of Social Security benefits
Eliminating taxes on overtime
Eliminating taxes on firefighters, police officers and members of the military
Tax credit for family caregivers taking care of parents or other loved ones
Interest write-off on car loans for those who buy a car made in the U.S.
To fund all of these tax cuts and credits, Trump proposed implementing high tariffs on goods entering the U.S.
NATP is closely monitoring the details of this news and will be in communication with our members if any of these tax items are extended or become law, and how the IRS implements these changes during tax season.
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About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.