The alternative minimum tax rate rises from 15% to 20.5%, the exemption increases to $173,000, and the base broadens to include 100% of capital gains and 30% of charitable donation credits. For some of my higher-income clients, this changes their planning significantly. I'm already running projections.
I keep a close eye on developments like these so my clients don't have to. Tax law changes can significantly affect your filing strategy, and I believe the earlier you understand them, the better positioned you are to plan effectively.
Whether you file in Canada, the United States, or both, staying current on these changes is essential. In my cross-border practice, I've seen firsthand how policy shifts in one country can create unexpected obligations — or opportunities — in the other.
If you have questions about how this affects your specific situation, please don't hesitate to reach out. I'm here to help you navigate these changes and make the best decisions for your financial future.