“Nothing is certain but death and taxes.”

This adage, often attributed to Benjamin Franklin, has stood the test of time. But if I could add one more piece of wisdom to this pearl of wisdom, it would be this: “Nothing is certain but death and taxes, but death never changes; taxes always change.”

With the second inauguration of President-elect Donald Trump, entrepreneurs and investors are watching these changes closely. In his first term, President Trump enacted one of the most significant changes to the tax code in decades with the Tax Cuts and Jobs Act (TCJA) of 2017. With issues related to the economy and job growth , the next four years could bring another wave of change.

With many of the tax cuts in the TCJA set to expire at the end of 2025 absent congressional action, at least one change is imminent. However, how much change and what kind is much harder to predict. The current political climate means Republicans will have to drive any tax policy changes, but with a slim majority in the House, any single lawmaker will have tremendous power.

Despite the uncertainty, there are some things entrepreneurs can expect.

1. The corporate tax rate is unlikely to rise

The TCJA lowered the corporate tax rate from 35% to 21% — a pro-business shift it has fostered INVESTING in countless industries. The good news for entrepreneurs is that this change is not among those that will expire.

President-elect Trump has publicly floated the idea of ​​further lowering the corporate tax rate, potentially up to 15% For companies that make their products in the U.S. Given concerns over the federal budget deficit, it's unclear when or if such a cut could happen. But the overall message on corporate taxes is clear: keeping them low is a priority.

2. Individual tax rates will remain roughly the same

While the individual income tax cuts and the standard deduction in the TCJA are set to expire at the end of 2025, their extension is widely popular. IN a 2023 survey from the Pew Research Center, more than half of American adults said they think they pay more than their fair share of taxes and that the tax system is extremely complex.

Given this public support and that of President-elect Trump advocacy for TCJA expansionwe will most likely see individual tax brackets stay roughly the same, and the standard deduction may even increase.

3. Big tax deductions are likely to change

The TCJA introduced or expanded a number of tax deductions that are extremely valuable to entrepreneurs. Here are three to watch:

• Deduction of qualified business income (QBI).

This deduction allows many pass-through business owners to deduct up to 20 percent of their qualified business income, plus 20 percent of qualified real estate investment dividends and qualified publicly traded partnership income. The deduction is also available to taxpayers who take the standard deduction and has been a game changer for small business owners.

Unfortunately for many entrepreneurs who rely on this deduction, extending it may not make the cut the next tax debate; many Democrats argue that it is helping the wealthy at the expense of average taxpayers, and many Republicans will prioritize cutting the corporate tax rate over the QBI.

Bonus depreciation is a tax deduction the government uses to encourage businesses to invest in certain assets, including certain equipment, software, vehicles and rental real estate. TCJA increase in bonus depreciation from 50% to 100% by 2022. Since then, it has declined by 20 percentage points each year and is set to reach zero by 2027 without congressional action. President-elect Trump has proposed reinstatement of a full 100% bonus depreciation deductionand I expect the new Congress to support this for the production and procurement of other equipment. However, real estate purchases seem less certain.

• State and Local Tax Deduction (SALT).

Entrepreneurs living in high tax states have felt the pain of the $10,000 cap The TCJA established the deduction of state and local taxes. Intense pressure from lawmakers in some states with high-income residents is likely to lead to an increase in this deduction. Without action from Congress, the cap will expire at the end of 2025. However, given concerns about the budget deficit, it is more likely that we will see lawmakers choose to raise the cap.

• Fewer, if any, incentives for green energy

In recent years, entrepreneurs and investors have made good use of some tax incentives they promote InveStment in electric vehicles, solar energy systems, wind farms and other renewable energy and environmental efforts. The Inflation Reduction Act of 2022 specifically included substantial tax credits for the cost of renewable energy systems.

President-elect Trump championed an energy policy more focused on oil and natural gas during the campaign, calling President Biden's energy policy a “new green trickSo if current incentives are part of your tax strategy, it's wise to connect with your tax advisor to discuss alternatives.

That said, it's also possible that those incentives will remain while others for fossil fuel-related energy projects will return. The elected president has expressed support for US energy independence and he called North Dakota Governor Doug Burgum — who supports oil production and renewables — his choice to lead a new National Energy Council.

How to prepare

Here is the good news. While most entrepreneurs have little influence over how these policies will shake out after the inauguration, the basics of creating a good tax strategy will not change.

Remember: your tax is based on your unique set of facts. To change your tax, you just need to change your facts.

How do you do this? Tax law is a series of incentives designed to influence how people earn and invest their money. The key is to pay attention to how the tax law changes and change your strategy accordingly. Stay informed and work with an advisor who will partner with you on a long-term approach to minimizing taxes while maximizing your wealth.