Planning for the Sunset of TCJA: Expiring Individual and Business Tax Provisions

Small business owners and individual income taxpayers could see a dramatic tax increase in 2026. Valuable tax provisions included in the TCJA are scheduled to sunset after 2025. The elimination of some deductions has been phased in gradually. 2022 was the last year for 100 percent bonus depreciation. The 100 percent rate has been decreasing by 20 percent annually, in 2024 the rate is 60 percent, and will continue to do so until it is eliminated.

For pass-through entity owners, the 20 percent QBI (qualified business income) deduction under 199A will expire in 2026, and the top individual income tax rate will return to 39.6 percent from its current rate of 37 percent. For individual taxpayers, the amounts allowed for the child care credit and standard deductions will substantially decrease. These changes and others could create an undue burden on small businesses and individual taxpayers. Taxpayers and their advisers need to consider the likelihood or unlikelihood of the extension of these provisions. Tax preparers need to be aware of the impact of this expiring legislation and prepare for the impending changes.

Listen as Larry Pon, CPA/PFS, CFP, EA, USTCP, AEP at Pon & Associates, explains the impact of the expiration of the TCJA provisions and offers practical advice on preparing for these changes.

1. The Tax Cut and Jobs Act of 2017
2. Individual provisions
3. Business provisions
4. State of extension of TCJA provisions
5. Planning for the expiration of TCJA provisions

The panelist will cover these and other critical issues:

• TCJA expiring provisions that will impact businesses
• TCJA expiring provisions that will affect individuals
• Planning for the elimination of TCJA's provisions
• The state of extending some or all of the provisions included in the TCJA

Learning Objectives

After completing this course, you will be able to:

• Identify expiring TCJA provisions that will impact individuals
• Determine proactive steps to plan for the expiration of benefits under TCJA
• Decide how the elimination of 199A will affect businesses
• Ascertain the likelihood of the extension of some or all of the TCJA provisions

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).