The Only Two Certainties

In 1789, Benjamin Franklin wrote the now-famous words: “In this world, nothing can be said to be certain except death and taxes.”
Lately, there has been a lot of talk and speculation about tax laws changing. Unfortunately, this debate has given the media plenty of content, from splashy headlines to hours of programming that can range from confusing to downright scary when discussing possible changes.

No matter how polarizing this or any other tax change discussion may be, this is nothing new. According to efile.com, over the last ten years, it is estimated that the tax code was amended or revised over 4,000 times. Thus, if Franklin had listed a third certainty, it could likely have been that taxes would change.

Whenever there is sweeping legislative tax reform, proactive actions have helped ensure money is managed as wisely and responsibly as possible. So what are those actions? Depending on income and other factors, employing methods to accelerate or defer taxable income or take or put off capital gains could make sense.

Unfortunately, there is no one size fits all approach: not this time or ever. The tax code is complex, and everyone’s circumstances are unique. That is why it is critical to work with an advisor or CPA that knows you and your situation well, where you can speak candidly about your money. Delegation to an expert could be the one piece of universal advice that would work here.

As with any tax reform, the team at Rather & Kittrell closely monitors Congress’s upcoming proposals and revisions. Upon the passing of a new bill, we discuss the possible tax revisions required with our clients. We are happy to have conversations around what this could mean for you.

From history, we can assume taxes are expected to change soon, but that isn’t specific to right now. In addition, there will likely be numerous other material changes to tax law within our lifetimes. If you work with an expert advisor that truly knows you and your finances well, they can keep you updated on the changes that will impact you individually and the proactive moves that can be made to navigate them this time and the next wisely. Receiving the right advice will allow you to spend little to no time worrying about the tax code or the actions of Congress and spend more time living.

Chase Kerby, CFP®, AIF® is an Adviser with Rather & Kittrell.