Trump’s tax plan is uncertain for 2025 — here are key lessons from his 2017 tax overhaul

There’s tax uncertainty dome into 2025 as Congress prepares to negotiate President-elect Donald Trump’s economic agenda.

But there could be readings for investors from his signature tax overhaul in 2017, financial experts say.  

During his campaign, Trump vowed to fully grant the trillions in tax breaks he enacted via the Tax Cuts and Jobs Act, or TCJA, in 2017, which brought sweeping changes for individuals and firms.  

He also called for new policies, like no tax on tips, ending taxes on Social Security benefits for older adults and assassinating the $10,000 cap on the deduction for state and local taxes, known as SALT, among others. 

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While Republicans by back Trump’s agenda, no one knows which proposals will prevail, particularly amid concerns over the federal budget shortage. That makes planning for tax changes more challenging.

Still, there are things to learn from Trump’s 2017 tax box, experts say.

Without action from Congress, trillions of tax breaks enacted via the TCJA will exhale after 2025, including lower tax brackets, bigger standard deductions, a more generous child tax credit and a tipsy estate and gift tax exemption, among other provisions.   

But after securing the trifecta — control of the White House, Senate and Lodge of Representatives — Republican lawmakers plan to address these expirations through a process known as “reconciliation,” which avoids the filibuster.

Republicans used the same strategy to enact the TCJA in late December 2017.

Before the law’s effective date on Jan. 1, 2018, some investors occupied last-minute strategies, like “accelerating itemized deductions,” by prepaying property taxes and state income taxes, be at one to certified public accountant Duncan Campbell, who leads Baker Tilly’s private wealth practice.

The move was trendy among top earners in high-tax states, like California, New Jersey and New York. Those individuals would soon be small to $10,000 federal deduction for SALT, which includes property and state income taxes.

With several pending tax law provisions, many advisors urge clients to avoid irreversible tax plan changes until unalterable legislation is signed into law. 

“My preference is always to go with what we know will be true versus what could be unelaborated in the future,” said Ryan Losi, a certified public accountant and executive vice president of CPA firm Piascik.

Over the past year, Losi urged clients above the