A Biden administration coupled with Democratic control of both houses of Congress increases the chances for broader tax reform, although centrist Democrats in the Senate could act to moderate current tax proposals. Tax experts agree that while changes to the tax code are likely, they probably won’t happen right away. The coronavirus pandemic and the recession it has triggered mean that Congress has other priorities at the moment. While tax changes could potentially be implemented on a retroactive basis, many tax practitioners think tax reform, if enacted, likely would not become effective until 2022.
Individuals are strongly encouraged to reach out to a financial professional at Trust Point and coordinate with your accountant and estate planning attorney to review potential planning opportunities.