Unless Congress takes legislative action, the tax changes from the 2017 Tax Cuts and Jobs Act will sunset on December 31, 2025, with the rules reverting to what was in place in 2016. By popular demand – and to help our subscribers plan for this possibility – users can now model scenarios in 2026 and beyond using the 2016 rules simply by selecting the “Current Law” calculation method.

The 2026 sunset changes in Holistiplan include:

• Ordinary income brackets revert back to 2017 levels, adjusted for inflation to 2026
• Elimination of the $10,000 SALT deduction cap
• Miscellaneous deductions subject to the 2% floor (See the Schedule A section)
• Maximum cash charity deduction drops from 60% to 50% AGI
• Itemized deduction phase out (aka the Pease limitation)
• Standard deduction reverts back to 2017 levels, adjusted for inflation to 2026
• Personal exemptions and their phase outs
• QBI deduction is discontinued
• Tweaks to the child tax credit
• AMT exemptions revert back to 2017 levels, adjusted for inflation to 2026
• Tweaked logic for when to take itemized vs. standard deduction due to AMT behavior. (Sometimes it is beneficial to itemize even if smaller.)

But What If There’s No Sunset?

We’ve got that covered too. We’ve also added an option called “No 2026 Sunset” to calculate the 2026+ taxes assuming no sunset happens. This latter method makes no changes to what is used in 2022 onward, apart from the normal inflation adjustments to various brackets.

Holistiplan’s tax-planning software makes it easy to show your clients clear deliverables in just moments. Click here to schedule your free trial of Holistiplan today.