Tax Warrior Chronicles

What’s In the Ways & Means Committee Outline of Proposed New Tax Laws

Posted on Fri, Sep 17, 2021

While many tax advisors were busy working to wrap up September 15th deadlines on Monday, House Ways & Means Committee Chairman Richard Neal released 881 pages of proposed legislative text intended to become part of the Build Back Better Act, a budget reconciliation bill forthcoming from Congress. That same day, Ways & Means Committee staff prepared and released an 18-page, section-by-section outline of the potential tax legislation required to cover the Biden administration’s $3.5 trillion spending plan. It’s still early in the legislative process and what will become law is still somewhat of a guessing game. But we are at the stage when we start following the proposals more closely, and

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Proposed Capital Gains Rate Increase Impact on the Sale of a Family Business

Posted on Fri, Aug 27, 2021

By: Sherri Sorbello, CPA

 

Among President Biden’s tax proposals is an increase in the long-term capital gain tax rate from 20% to the top ordinary tax rate (37% for 2021 or 39.6% for 2022) for taxpayers with adjusted gross income (AGI) over $1 million. At the time of the publication of this blog, it is unclear if this change, if enacted, will be retroactive to a yet-to-be determined date in 2021 or if it will take effect as of January 1, 2022. For those looking to sell a family business, planning for the potential higher tax rate is essential to ensure you net the greatest cash flow from the sale of a business.

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Biden Tax Proposals & Highlights from the Green Book:  Retroactive Capital Gains Tax Increase and the Repeal of the Step-up in Basis, Among Others

Posted on Fri, Jun 11, 2021

With Democrats needing to convince 10 Republicans to cross the aisle to enact a tax proposal in the Senate, President Biden’s tax proposals are most likely to move into, and take shape within, the budget reconciliation process where a simple majority of 51 votes are needed. In a practice not seen since 2016, on May 28, 2021, the Biden Administration reviewed and issued an accompaniment to the Administration’s Budget, referred to as the Green Book, that offers general explanations of the revenue proposals. The Green Book contained more detail, insight, and a couple of surprise changes to proposals in The American Jobs Plan and the American Families Plan, which President Biden released

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Will Capital Gain Rate Changes Kill Opportunity Zone Investments? Quite the Opposite, in Fact…

Posted on Thu, May 20, 2021

By: Chris Catarino, CPA, MT

 

On April 28, 2021, President Biden unveiled the American Families Plan, which includes significant provisions that would increase taxes for wealthy taxpayers. Among a litany of proposed tax changes is a call to increase the tax rate on long-term capital gains from the current 20% to 39.6%, for households making over $1 million. While the proposed legislation has a way to go before enactment, and is likely to see significant revision, many are concerned with the currently proposed rate increase, especially those investing in Qualified Opportunity Zones (OZ).

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Tax Breaks for Parents in 2021!

Posted on Mon, May 10, 2021

By: Irina Moyseyenko, CPA, MT

 

The American Rescue Plan Act (“Act”), passed in March 2021, provides significant benefits for taxpayers with children. Today we will discuss the increased tax benefits, which are applicable only to tax year 2021. These benefits will revert to their previous amounts and limits unless extended by future legislation.

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Another Round of Recovery Rebates Credits - American Rescue Plan Act of 2021

Posted on Fri, Mar 12, 2021

By: Drucker & Scaccetti

 

Yesterday, President Biden signed into law his first legislative act related to the COVID-19 crisis. Among its near 600-page content, the American Rescue Plan Act of 2021 (ARPA) provides a 2021 $1,400 Recovery Rebate Credit (RRC) per eligible individual and dependent. Dependents include qualifying children and qualifying relatives. Contrarily, the rebates under the CARES Act only included qualifying children. Today we will discuss the details of the 2021 RRC, including the advanced payments, which are expected to begin disbursement soon.

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