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Permanent TCJA Changes: What to Know About Your Tax Obligations Post-2025
ARTICLE | October 08, 2024
Authored by Vasquez + Company
The Tax Cuts and Jobs Act (TCJA) brought significant changes to individual tax rules. While most of these provisions are set to expire after 2025, there are key permanent changes that remain in place. This article outlines six TCJA provisions that will continue to affect individual taxpayers beyond 2025, including changes to charitable deductions, alimony, and 529 plans.
Key Points:
- Charitable Deductions: Eliminated deductions for donations to colleges tied to athletic event tickets.
- Alimony: No more deductions for alimony payments under post-2018 divorce agreements.
- Like-Kind Exchanges: Limited to real property, excluding personal properties such as vehicles.
- Roth IRA Conversions: Conversion reversals are no longer allowed.
- ACA Penalty: The individual mandate penalty has been permanently repealed.
- 529 Plans: Up to $10,000 can be used annually for K-12 tuition.
For detailed explanations of these provisions and their long-term implications, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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