For wealth advisors, staying informed on the rapidly changing federal tax policies isn’t just about compliance—it’s about protecting and growing their clients’ financial futures.
“Taxes matter,” says Scott Hodge, President Emeritus of the Tax Foundation. “They influence decision-making in ways people often don’t realize, from business investment to personal wealth strategies.”
With Donald Trump now firmly back in the White House, his proposed tax reforms are expected to take center stage, creating opportunities for advisors who proactively guide their clients. During his campaign, Trump outlined a series of tax policies, including proposed tariffs and changes to tax structures, that could shape the economy for years to come.
As David Fisher, co-founder of ExchangeRight, put it, “I’m pretty optimistic. I think we’ll see a lot of positives for the American economy. Trump is going to use things like tariffs as a chess game. And whether you like him or don’t like him, he’s a very good chess player.”
Against this backdrop, the upcoming Blue Vault 2025 Alts Summit held March 10-12, is poised as a pivotal event for financial advisors. Hosted by Blue Vault, a leading resource for education and research on alternative investments, the summit will feature thought leaders like Hodge, Fisher, and Brian Evans, founder and wealth advisor of Madrona Financial offering actionable insights into how advisors can continue to position their clients for success.
The Tax Foundation’s View: Pro-growth Policy in Focus
With the expiration of several TCJA provisions looming, advisors are facing a murky tax landscape. The 20 percent deduction for small businesses under Section 199A, enhanced estate tax exemptions, and individual income tax cuts are just a few of the policies set to expire by the end of 2025. As Hodge points out, the implications of these expirations—and whether Congress will act to extend them—are monumental.
“Our preliminary estimates show that extending the TCJA tax cuts could raise GDP by 1 percent over the next decade and create nearly 900,000 jobs,” Hodge explains. “But it could also add $3 trillion to the federal deficit. Balancing growth, equity, and fiscal responsibility is the challenge lawmakers face—and it’s also what advisors need to anticipate when developing strategies for their clients.”
Fisher shares Hodge’s concerns about uncertainty, particularly for real estate-focused investments like 1031 exchanges and Delaware Statutory Trusts (DSTs). “The tax policies of the new administration are not yet completely clear,” Fisher says. “Sound bites are easy, but translating them into legislation that gets through Congress is another story. We need to stay vigilant because even in a business-friendly environment, harmful proposals can emerge.”
Fisher recalls how 1031 exchanges for equipment were eliminated in 2017 in exchange for accelerated depreciation—a trade-off that blindsided parts of the industry. “That experience taught us the importance of advocacy,” he says. “Whether it’s protecting 1031 exchanges for real estate or pushing for better parity for private real estate investment trusts, we need to stay engaged to ensure the best outcomes for our clients.”
Advocacy will also play a crucial role. “If organizations like Blue Vault or the Real Estate Roundtable sound the alarm on proposed changes, it’s critical for everyone in the industry to raise their voices,” Fisher says. “Otherwise, we risk outcomes that could harm clients and the economy.”
The Role of Alternative Investments
While tax policies remain uncertain, alternative investments have emerged as a powerful tool for mitigating risk and maximizing returns. Evans has built his $1 billion practice on a foundation of forward-thinking strategies that incorporate alternatives like DSTs and private real estate investment trusts (REITs). For Evans, these investments aren’t just a way to diversify—they’re an essential part of effective tax planning.
Evans’ expertise extends far beyond his practice. His insights have been featured on major networks like CNBC’s Closing Bell and Fox Business Network, and he shares his knowledge weekly on his radio show, Growing Your Wealth, which airs across Washington.
“Most advisors claim to do tax planning, but what they’re really doing is product placement,” Evans explains. “True tax planning means understanding your clients’ returns, running projections, and anticipating how changes in tax policy will affect strategies like Roth conversions or estate gifting.”
One strategy Evans frequently employs is helping property owners transition from active landlord responsibilities to passive income. “Real estate is one of the biggest drivers of wealth in this country, but too many property owners don’t realize they can retire from being a landlord, move their money into a DST, and eliminate taxes through a step-up in basis. Their heirs or spouse can inherit that money tax-free while continuing to benefit from cash flow and diversification,” he says. “It’s a game-changer for retirees who no longer want the headaches of managing properties but still want to preserve and grow their wealth.”
Fisher echoes this sentiment, emphasizing that alternative investments are particularly well-suited to steering through periods of tax uncertainty. “DSTs, private REITs, and other real estate-focused strategies provide significant tax advantages,” he says. “But they also require a deep understanding of the risks and trade-offs involved. That’s why education and vigilance are so important—for both advisors and their clients.”
With the Blue Vault 2025 Alts Summit approaching in March, advisors have a unique opportunity to hear directly from industry leaders like Hodge, Fisher, and Evans.
For wealth advisors, understanding federal tax policy isn’t just about staying compliant—it’s about positioning clients for success. “Advisors need to focus on the provisions that create the most economic growth,” says Hodge. “That should drive everything.”
