A research study has found that residents of states like Connecticut, California, New Jersey and New York could be looking at a bigger tax bill, based on proposed changes to local and state taxes and mortgage deductions. The impact of the changes in these individual states will depend based on a family’s income, size and which deductions they may choose to take. State and local taxes which are also referred to as SALT are currently deductible as an itemized deduction.
However, the changes to state and local tax deductions could reduce disposable income for tax payers. However, it is anticipated that it would increase financial flexibility. The overall negative impact however, would be felt most significantly in high tax states such as California. If you are concerned about tax reform and the sweeping changes occurring in the tax landscape, you need to schedule a time to consult with an experienced California estate planning attorney. Estate planning often involves multiple considerations such as elder law, tax planning and articulating an estate plan to pass on your assets to your beneficiaries.
The right estate planning lawyer can help you successfully navigate comprehensive planning and give you the peace of mind that there are strategies in place, should something happen to you.
