The new federal tax-reform law made some substantial changes to the U.S. tax code and obviously has a major impact on American taxpayers’ financial plans.
We spoke with several members of the CNBC Digital Financial Advisor Council and had them weigh in on strategies they are recommending to their clients based on the new tax law.
The new law will affect millions of taxpayers in 2018, when most of the provisions kick in. That’s why understanding how it will impact you is so important, these advisors said. Planning now can help you sidestep some pitfalls while maximizing your returns next year, they explained.
“It’s an individual thing on how it impacts people,” said Ron Carson, founder and CEO of Carson Wealth Management Group. Since the tax law changes will have an impact next year, Carson said it’s key for taxpayers to “just get out, sit down and talk to your advisor.”
Carson said it’s important to anticipate if there are any changes or adjustments that need to be made.
“For example, with interest rates so low, maybe some of the things you are doing to defer taxes no longer make any sense,” he said. “It’s an individual decision.
“There isn’t any rule generalization,” Carson added. “You need to roll up your sleeves and do the planning.”
The GOP tax law caps state and local tax deductions at $10,000, which is well below the average amounts claimed by individuals residing in states such as New York, California and New Jersey.
Cathy Curtis, founder and owner of Curtis Financial Planning in Oakland, California, said that’s a big concern for her clients in the Golden State.