RECORDED WEBCAST |
Authored by RSM US LLP
The American Families Plan, unveiled by President Biden on April 28, provides for expansive programs in the areas of education, child care and family support, all to be funded by significant tax increases. Many of these are designed to target wealthy individuals and high earners, including business owners. Specifically, the plan includes the following tax proposals:
- Increasing the top individual income tax rate and taxing capital gains at the same rate for incomes of over $1 million
- Ending carried interest and restrictions on like-kind exchanges of property
- Ending the “step up” of basis in property transferred at death for gains in excess of $1 million
- Eliminating rules that allow taxpayers making over $400,000 to avoid the 3.8% Medicare tax on earnings and net investment income
- Permanently extending the Tax Cuts and Jobs Act of 2017 limitation on the deductibility of passive losses
- Requiring financial institutions to report information on account flows to better track opaque sources of income subject to tax
- Providing additional IRS funding to focus on compliance by large corporations, businesses, estates, and higher-income individuals
Watch this recorded webcast to explore what this plan, combined with proposed corporate tax changes in the Made in America Tax Plan, could mean for the middle market. As Congress negotiates the proposals, understanding the wide range of tax implications including timing, effective dates, and the possibility of retroactive application will help in planning considerations.
Patti has extensive experience handling IRS examination and appeals matters for all types of business. Reach her at email@example.com.
Areas of focus: Tax Controversy, Washington National Tax
National Industry Tax Leader
This article was written by RSM US LLP and originally appeared on 2021-05-06.
2020 RSM US LLP. All rights reserved.
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. The RSM(tm) brandmark is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Insero & Co. CPAs, LLP is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how Insero & Co. CPAs can assist you, please call (800) 232-9547.