As we hear over and over, one thing is certain in life: death and taxes. For the first one, our CPAs routinely help Bay Area locals manage their estate planning. This type of work can be handled years in advance. Although it may change from time to time, we can also help clients manage the adjustments. But once it’s been figured out, estate planning is fairly simple to update.
Taxes are another issue altogether. Our CPA team and San Francisco tax advisors are experts in various tax obligations. We manage state, country, and global tax issues for our Bay Area clients, as well as business or personal taxes. However, in this case, changes usually don’t come from the client but the government. And when it’s election season with a new president on the horizon, tax preparedness becomes a waiting game.
The Money Report provides a quick overview of how the Trump vs. Harris election can affect our taxes. For instance, Donald Trump’s “Tax Cuts and Jobs Act” or TCJA has given Americans millions in tax breaks. But it expires in 2025 if Congress doesn’t take action. If Kamala Harris wins, she may not extend the TCJA but may be influenced to extend the tax cuts. Harris is also looking at proposing tax increases for corporations from 21% to 28%. In contrast, Trump might focus on tariffs for imported goods instead.
Bay Area business owners and high-income individuals should prepare for these two different outcomes.
Our San Francisco Tax Advisors Prepare for Wherever the Wind Blows
There’s a reason why we chose the name Safe Harbor for our CPA firm. Financial waters can be unpredictable at times. One minute, the weather is good, and it’s smooth sailing. The next moment, a storm is approaching, and it’s time to navigate a spot to wait it out or ride the waves. As CPAs, it’s our job to research every outcome and advise the best strategy for our clients.
The Tax Foundation has information about how to track the 2024 presidential tax plans and where the candidates stand on them. For instance, the corporate tax rate could increase to 28% or lower to 20%, depending on who is elected. These are critical changes we help prepare Bay Area business owners for.
It’s still unclear who will win this next election, but whoever is in control at the government level, it’s our duty to keep our client’s financials safe and steady wherever the wind blows!
