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As many of you know by now, Donald Trump has won a second term as president. Additionally, Republicans in the U.S. Senate will have a small majority in Congress. It is still uncertain who will hold a majority in the House of Representatives. What does this mean for tax legislation set to expire, or “sunset,” at the end of 2025?

To pass a permanent tax law, a majority of at least 60 senators is needed. Without this, the law can only last for 10 years. As of now, it does not appear that 60 senators can make the laws passed in 2017 become permanent. Therefore, assuming President-elect Trump seeks to extend the law, he would likely be able to do so for only 10 years, as occurred during his previous administration.

If extending the law in its current form is a top priority for President-elect Trump and the Senate, they would need to act immediately upon taking office to prevent the current law from sunsetting in 2026. However, this may not be possible, and the current exclusions could sunset in 2026, potentially leading to revisions afterward. This remains to be seen. The International Wealth & Asset Planning practice group at Greenspoon Marder will continue to monitor the situation as events unfold. If you have any questions, feel free to contact me at [email protected].

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