Are You Ready for Changes to U.S. Tax Law?

In a few short months Americans will go to the polls to elect our next president. Depending on who wins, your taxes might go up or they might go down. But no matter who wins—changes to U.S. tax laws are coming that will impact all Americans.

The Tax Cuts and Jobs Act of 2017 included many tax breaks that will automatically expire in 2025 unless Congress acts.

Both presidential candidates: Donald Trump and Kamala Harris are floating potential tax hikes and tax breaks aplenty. What shape these take and which proposals could actually become law are anyone’s guess at this point. There are many variables including who wins the White House and which party controls Congress.

After all, both the House of Representatives and the Senate must pass any future tax bills and then the President can either sign or veto it. If the President vetoes the tax bill, then Congress could try to override that with a 2/3 vote.

Make no mistake. Along the way, there will be plenty of negotiation, compromises and deal making around various aspects of any proposed tax laws.

You may remember, the 2017 tax law temporarily changed a number of key provisions in U.S. tax code including lower tax brackets, a higher standard deduction and an increase to a number of deductions.

Notably, the uber-wealthy are facing big changes to estate tax law that could significantly reduce the amount of wealth that families can transfer tax-free to the next generation.

For example, in 2024 the tax-free limit on gifts increased to $13.61 million per person. Once the 2017 tax cuts expire, that limit will fall by about half in 2026, without new legislation from Congress.

With the estate tax level on track to decrease by nearly half after 2025, that significantly reduces the wealth you can give to your heirs, as the government will take a much larger portion of your family’s money.

Given the tax changes that will occur, many high-net-worth individuals are taking action now to remove assets from their estate by making lifetime gifts.

No matter your net worth or income level, gold and silver are excellent vehicles for the private preservation of wealth.

Gold and silver bullion and rare coins have long been touted by trust attorneys as an efficient and discreet method of transferring wealth from one generation to another.

Looking ahead, Americans of all income levels will face higher tax rates and lose out on a number of deductions, meaning your bill to Uncle Sam will be higher than it has in recent years if the 2017 tax cuts are allowed to expire.

You can’t control what tax legislation Congress passes or doesn’t pass. You can control how you prepare and position your finances to limit the impact of taxes reverting back to 2017 levels.

One of the many advantages of investing in gold, silver and rare coins are the privacy these investments give to you. These are tangible assets outside of the banking system and aren’t tracked in a digital database, online brokerage account or bank savings account.

You simply own your gold and silver coins and can store them anywhere you choose: a home safe, a safe deposit box, you could add them to a self-directed IRA or choose an international vault like the International Depository Services (IDS) of Canada, a precious metals depository in Toronto. Assets there are stored in an international personal custody account, which is off depository balance sheets and beyond the reach of the U.S. government.

Changes in the tax laws are coming. If you act soon there’s still time for you to explore and implement proven strategies with tangible assets to protect, preserve and grow your wealth. Questions? We are here to help.

Want to read more? Subscribe to the Blanchard Newsletter and get our tales from the vault, our favorite stories from around the world and the latest tangible assets news delivered to your inbox weekly