Biden Administration’s Tax Changes May Impact Estate Planning
Although nothing has been finalized and presented to Congress, the Biden administration has referenced various proposed tax changes as follows:
- Raise the top marginal federal income tax rate to 39.6%.
- Increase taxes on capital gains.
- Subject unrealized capital gains at death to taxation.
- Increase payroll taxes on the wealthy.
- Raise the corporate income tax rate to 28%.
- Reduce the federal exemption for estate taxation from $11.7 million to $3.5 million and increase the tax rate to 45%.
As stated above, although nothing has been finalized, it is fairly certain that significant changes will be made that negatively impact estates. Therefore, time is of the essence to perform as much estate and gift tax planning as possible and as soon as possible.
Please continue to check out our website, social media, and email communications for future updates from the team on the proposed tax changes and the impacts on business valuation. The team at Vallit is ready to assist as business valuations represent an integral part of the planning process. Feel free to contact our team to discuss. We have offices in Maryland, D.C. and Colorado and proudly serve our clients looking for dispute advisory, business valuation and forensic accounting services.
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