Tax Section Odyssey BBB Crossover Special: Tax and planning strategies under the new law
Jul 4, 2025
Mark Gallegos, a CPA and Partner at Porte Brown, and Robert Keebler, Partner at Keebler & Associates, dive into the latest tax legislation changes and their implications for financial planning. They discuss the new permanent tax cuts, strategic opportunities like Roth conversions, and important estate planning adjustments. The duo emphasizes the urgency for tax professionals to adapt their strategies, focusing on multi-year models and navigating complex regulations for high-net-worth clients, especially in light of Medicaid considerations.
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Permanent TCJA Brackets Bring Stability
- Permanent extension of the TCJA brackets offers stability for long-term tax planning.
- This certainty is crucial for strategies like Roth conversions and income timing.
Entity Choice Depends on Goals
- Evaluate client business goals to decide between flow-through or C-Corp entities.
- Model tax impact carefully for each to maximize qualified business income benefits.
SALT Cap Increase and Phaseouts
- Increased SALT deduction to $40,000 offers some relief but phases out at higher incomes.
- Marginal tax rates can spike above 45% due to phase-outs, influencing work incentives.