Brief Update: Tax Law Changes
We know a number of you are waiting with much anticipation - both good and bad - to know how tax law changes will impact you for both 2021 and for future years.
While we are very much looking to help you minimize your taxes in this regard, we are in a holding pattern currently as Congress continues to debate the final form of the comprehensive Build Back Better spending package.
In particular, the $10,000 cap on state and local income, sales, and real estate taxes (SALT) is likely going to be altered in some manner, but the nature of this alteration has been changed several times as negotiations have continued.
Because of this, if you are able, I would highly recommend you wait to pay both your real estate taxes on your primary residence and any vacation and other personal use properties until we can provide further guidance.
However, if you have been paying your real estate taxes in January historically, I would also prepare to pay them by December 31 if 2021 was a particularly high income year or if your income will otherwise go down in 2022, as there is a good chance any change in the SALT limit will be retroactive to the start of 2021.
Bottom line - hang tight for now, we're keeping a close eye on things. We will have further communications as things develop.