Several federal scenarios could impact wealthy individuals both positively and negatively, according to Stan Gregor, CEO of Summit Financial in Parsippany, N.J. “The current political landscape and outcome of the 2020 elections will have a lot to do with how these changes play out,” he said.
Changes in estate and income taxes will have a particular impact. “With income taxes, the tax brackets are indexed, so next year they’re going to go higher,” Gregor said. “It’ll be key for advisors to look at their clients’ portfolios to see if there is anything that can be thrown into a future year.”
Another advisor also stressed the need to pay attention to the new IRS thresholds.