8. Don’t fret about the potential tax implication of Joe Biden being elected president.
Don’t be too concerned about tax implications from the election of Joe Biden as president, since it seems likely the Senate will remain Republican. This makes it likely that Biden will have a hard time getting at least some of his plans passed, Doyle says. “Tax legislation is going to be a challenge” for the new president for at least the next two years, until the mid-term elections, he predicts. For the same reason, “We can hit the pause button” on any plans to drastically make changes in estate planning before the end of 2020, Doyle explains. However, keep your eye on the runoff elections in Georgia in January. If the Democrats win both, they will get a slight edge in the Senate by virtue of Vice President Kamala Harris’ possible tie-breaking vote. Also, under earlier tax law, the $11.58 million lifetime gift tax exemption will “sunset” and go back to $5 million starting in 2026, which some individuals should keep in mind, he adds.
(Photo: Daniel Acker/Bloomberg)