With no clear winner emerging in the presidential election less than two weeks out, many higher income taxpayers are preparing their finances to protect their assets from potentially higher taxes, experts said.
If former President Donald Trump’s tax cuts expire as scheduled at the end of 2025, one of the most significant changes will be the reduction in federal estate and gift tax exemptions.
Under the Tax Cuts and Jobs Act of 2017 (TCJA), the exemptions were effectively doubled. The exemption in 2025 is $13.99 million per person, up from $13.61 million in 2024. However, these increased exemptions are set to revert to approximately $7 million ($5 million when adjusted for inflation) after 2025, unless Congress extends the provision.
