Tax Cuts and Jobs Act (TCJA) Sunset

Definition

The TCJA Sunset refers to the scheduled expiration of many individual and pass-through tax provisions enacted by the Tax Cuts and Jobs Act of 2017, set to take effect after December 31, 2025, unless Congress passes new legislation. For pass-through entity owners, the most significant impact would be the elimination of the Section 199A qualified business income deduction. This creates a limited planning window for CPAs to advise clients on entity structure, compensation strategies, and income timing before the provisions expire.