Preparing for 2026 and the Expiring TCJA Tax Cuts with Higher Ground Financial

"TCJA Tax Cuts Expiring in 2026: What Planners and Advisers Can Do Now to Prepare" was written by Daniel Razvi, Esq., Senior Partner and Chief Operating Officer at Higher Ground Financial Group, explores what financial planners and clients should do now as the TCJA Tax Cuts approach expiration in 2026.

Read the Full Article in FPA

Drawing on years of experience providing tax-based financial strategies under the leadership of Imran Razvi, Daniel explains how these sweeping changes to the Tax Cuts and Jobs Act will impact individuals, estates, and businesses — and why proactive planning today can prevent major tax shocks tomorrow. His insights provide a clear roadmap for advisers and investors alike to navigate the shifting tax landscape with confidence and foresight.

The expiration of key TCJA Tax Cuts at the end of 2025 will significantly reshape individual and business tax landscapes beginning January 2026. Planners and advisers should act now to protect clients — especially high-income earners and business owners — because many favorable TCJA provisions (expanded tax brackets, enhanced deductions, and higher estate exemptions) will revert to pre-2018 rules.

Major changes include higher individual tax rates (for example, the top rate moving from 37% to 39.6%), narrower tax brackets (reducing the “room” for Roth conversions and taxable events), a halved standard deduction that will push more filers to itemize, restoration of SALT limits and other itemized deductions, and a rollback of charitable deduction limits from 60% to 50% of AGI. The individual Alternative Minimum Tax (AMT) thresholds will be lower, subjecting more taxpayers to AMT. Estate tax exemptions — currently about $13.6M per person in 2024 — are projected to drop roughly in half, making estate planning urgent for clients with multi-million dollar estates. On the business side, the corporate 21% rate stays permanent, but the 20% QBI deduction for pass-through entities will expire, and bonus depreciation phases out.

Practical strategies to use before the TCJA changes take effect:

• Roth conversions — move IRA assets to Roth to lock in current lower rates and avoid larger future tax bills.

• Charitable planning (CRUTs and QCDs) — use CRUTs to convert appreciated assets, generate income, and offset conversion taxes; QCDs remain useful for those over 70½.

• Entity restructuring — evaluate switching some pass-throughs to C-corporations if owners expect higher effective personal rates after 2025.

• Estate planning — leverage current high exemptions by gifting and funding irrevocable trusts now; consider life insurance for tax-efficient legacy transfer.

About Higher Ground Financial Group

Higher Ground Financial Group is a family-owned business that exists to help clients nationwide achieve their financial goals. Like family, Daniel and Imran Razvi rely on each other’s strengths, and, in turn, rely on each other’s collective talents to support you. Whatever your financial concern or challenge - when your family calls, our family and experienced associates will answer!

Learn more about how Daniel Razvi and Imran Razvi proudly serve families nationwide.