Investors seeking to take gains confront a similarly murky tax-rate picture. “Trump’s capital gains rates aren’t going to be an improvement necessarily. You could be in a higher bracket,” warns Tom Wheelwright, a CPA and the CEO of ProVision Wealth Strategists in Tempe, Ariz.

The Republican plan would likewise push many clients into a higher cap-gains bracket, although most would ultimately pay a lower rate than they do today after accounting for repeal of the Obamacare surtax.

Thus, a couple filing jointly with income of, say, $400,000, would see their gains and qualified dividends taxed this year—assuming there were no AMT consequences—at 18.8% (a 15% capital gains tax plus a 3.8% surtax), where it would be 20% next year if Trump gets his way or 16.5% if House Republicans get theirs.

“We would recommend taking steps to minimize 2016 taxes versus hedging in hopes of change,” says George Marron, a senior wealth management consultant with Manning & Napier in Fairport, N.Y.

Strategies For Business Clients

The future availability of business tax credits and deductions is in question. “Most corporate tax expenditures except for the research and development credit” would be eliminated, according to www.donaldjtrump.com. Whether “tax expenditures” refers to credits, deductions or both befuddles Washington-watchers. Whatever its meaning, it does suggest that December 31 could be the last call for a variety of business tax breaks.

So before the year is out, owners should consider writing down inventory that isn’t moving and charging off debts, whether accounts receivable or notes, that they probably won’t collect, says CPA Blake Christian, a tax partner at accounting firm HCVT LLP, in Park City, Utah.

He’s also advising cash-basis businesses to pay employee bonuses before the new year. Accrual-basis employers should accrue bonuses when closing their 2016 books to get the deduction this year; payment need not occur until March 15, 2017, which would benefit employees whose tax rate falls next year. But this shift won’t work for bonuses to partners or controlling shareholders, says Christian. “They are effectively put on a cash basis for deductibility.”

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