Trump’s tax plan also caps itemized deductions at $100,000 for single filers and $200,000 for married couples filing jointly.
“The potential limitation of charitable contributions within the $200,000 framework is very controversial,” Speiss said.
There is no guarantee, even with a Republican-controlled Congress, that these proposals will become law.
“Given the magnitude of these proposed tax cuts, Congress will have to compromise on some part of the plan,” said Joseph Rosenberg, a senior research associate with the Tax Policy Center.
Potential members of Trump’s Cabinet have said things that have conflicted with his tax proposals.
For example, Trump’s pick for Treasury secretary, Steve Mnuchin, has said the tax plan would have “no absolute tax cut for the upper class,” though most independent reviews of the proposal say it would.
So what can taxpayers do to prepare for possible tax reform?
“Whenever possible, defer any realized gains to down the road because we may have lower tax brackets during the Trump administration,” said James Gambaccini, a certified financial planner and managing partner at Acorn Financial Services in Livingston, New Jersey.