Published Tuesday, November 17, 2020 at: 10:04 PM EST
Here's a chance for us all to come together. No matter whether you voted Red or Blue, tax planning is about green!
Whether you like Biden or Trump, you probably want to pay as little tax as possible. Assuming that's true, this is an urgent and important tax alert, and a call to act before the end of 2020.
A majority of financial professionals expect estate taxes will be hiked in 2021. This could be a really big deal to your family. Specially, more than half of advisors surveyed at a continuing education class for tax and financial planning professionals expect the estate tax exemption will be slashed from $11.5 million to $3.5 million.
To be clear, failing to plan for what's expected to happen by a majority of tax and financial planners could mean paying tens of thousands of dollars or more in estate taxes. But it requires acting by the end of 2020, which is closing in fast.
In addition to the expansion of the estate tax, the payroll tax is widely expected to be expanded to millions of high-income earners. According to Advisors4Advisors, a popular news and education service for tax and financial planning professionals, 75% of practitioners believe the payroll tax will also be hiked on high-income earners in 2021.
Doctors, dentists, audiologists, and other professionals as well as business owners who earn more than $400,000 are targeted for a 12.4% payroll tax increase in 2021 under President-elect Biden's tax plan, according to the Biden campaign website.
No matter your political leanings, the need for action by the end of the year by high-net worth and high-income individuals is urgent.
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