This week’s Barron’s magazine published an interview with Robert Willlens titled Advice From Wall Street’s Go-To Tax Man.
Writer Andrew Barry describes Mr. Willens as “one of Wall Street’s leading tax and, financial-accounting experts. When hedge funds and other investors want advice on whether companies such as Yahoo! and Liberty Media can use the complex tax code for potentially value-creating transactions, they often seek his input.”
While the most interesting tax man in the world would be an oxy-moron, the interview provides some good tidbits for personal investment tax strategies as well as discussing some specific companies and situations that may be affected the new political reality in Washington.
You can read the article at the above link (pay wall) or pick up a copy Barron’s at the newsstand, but in the mean time here are a few of the high-lights pertaining to individual investors:
- Under both the House Republican and the Trump plan, seven brackets would be consolidated to three with a top rate of 33%.
- Both the House Plan and the Trump plan eliminate the Alternative Minimum Tax (AMT).
- Under the House plan investment income would get favorable treatment effectively taxed at just over 16%.
- Under the House plan in order to pay for lower rates, itemized deductions would be “eviscerated”. Significantly would be the repeal of the deduction for state and local (property) taxes. The Trump plan “would apparently retain the full array of itemized deductions we have today, but he would cap the aggregate amount at $200,000.”
- Both House and Trump plans would repeal the Estate Tax.
Mr. Willens goes on to say that individuals should “accelerate deductions into the current year when they will be deductible at higher tax rates and defer income until future years when it will be taxed at lower rates.”
He also discusses some specific corporate situations that may benefit from changes in the corporate tax code.
DISCLAIMER: Nothing in this article should be construed as a personal recommendation or advice. Nor should anything in this article be construed as an offer, or a solicitation of an offer, to sell or buy any investment security. Barnhart Investment Advisory clients and principals may hold positions in any securities mentioned in this article. Investors should conduct their own due diligence and seek the advice of a financial and/or investment professional before making any investment decisions.