ATLANTA, Aug. 3, 2021 /PRNewswire/ -- Under President Joe Biden's tax plan, you may need to take some steps to protect your family's assets. President Biden's proposals would nearly double the top tax rate on capital gains and would eliminate a tax benefit on appreciated assets called the "step-up in basis." If approved, these proposals will significantly raise taxes on those who earn over $400,000, restore the 39.6 percent tax rate on capital gains over $1 million, and set a 28 percent cap on itemized deductions.
Senators Chris Van Hollen of Maryland and Bernie Sanders of Vermont have also introduced legislation that, if approved, will considerably increase taxes on families. Under Senator Van Hollen's proposal, transfers that are now income tax-free (gifts, transfers to non-grantor trusts, and transfers at death) would be taxed on all unrealized appreciation. Senator Sanders' proposed legislation would substantially lower the lifetime gift tax exemption.
"The savings that so many families in Georgia have accumulated through hard work and smart planning could be wiped out if these legislative proposals go into effect," according to Atlanta estate planning attorney Oren Ross. A higher capital gains tax and the end of step-up in basis could raise the tax rate total as high as 61 percent for some families, according to one analysis.
For instance, if you started up a business that is now worth $100 million, the business would pass to your family today with no capital gains tax. But under the White House plan, your family would owe a capital gains tax of $42.96 million immediately upon your death, plus a net investment income tax of 3.8 percent, minus the $1 million exemption.
If these proposals take effect, how can you protect your loved ones and your savings? An estate planning attorney at Oren Ross & Associates can help families protect their savings, plan for the future, and reduce their tax burden. Oren Ross & Associates offers its clients the same knowledge and experience that the big law firms provide – but with small firm rates, personal attention, and always-open lines of communication.
Oren Ross & Associates is now helping families prepare for the tax changes that are coming. To learn more, and to work with the law firm that offers big firm knowledge with small firm pricing and communications, schedule a personal consultation by contacting Oren Ross & Associates – as quickly as possible – at (404) 267-5597.
For more information:
Oren Ross & Associates
200 Galleria Parkway #1880
Atlanta, GA 30339
Phone: (404) 267-5597
Email: [email protected]
SOURCE Oren Ross