Tax Strategies for the Proposed Build Back Better Act
October 13 @ 1:00 pm – 2:00 pm CDT
The long-awaited change in tax laws as promised by both the President and Congress last Spring is starting to take shape. Within the latest version of the Build Back Better Act, the budget reconciliation bill which contains the pending tax reforms, there were a few tax surprises worth noting for taxpayers who want to be prepared for the cooler tax climate ahead.
Mike Cyrs, Senior Director of Wealth Transfer; Chris Plagge, Director of Tax and Business Services; and financial advisor Joel Cundick will provide further insight as they discuss how these proposed changes may affect your current planning and provide future opportunities to consider.
- Changes to Capital Gains Tax Rate: The American Families Plan released in April 2021 would have subjected countless heirs and legatees to additional capital gains tax on assets they might receive via gift or inheritance at rates as high as 43.4% due to a change in the rules related to determining tax basis. Under the current legislation, the current basis rules are left unchanged, but the highest marginal capital gains tax rate would climb from 20% to 25%.
- Federal Estate Tax Credit: The bill reduces the Federal Estate Tax Credit equivalent from its current historic high of $11.7 million per person, to the much lower pre-Trump era level of $5.85 million per person. With an effective date for those provisions of January 1, 2022.
- Changes to Individual and Corporate Tax Rates: Under most pending legislation, the top marginal tax bracket will be increased to 39.6% for taxable income over $450K (married filing jointly) and $400K (single). A corresponding increase is also proposed to the corporate tax rate from its current flat rate of 20%, to a graduated rate structure capping out at a higher rate of 26.5%.
Can’t make the virtual event? Register anyway and we’ll send you the recording.