facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Taxes - The Potential Capital Gains Increase Thumbnail

Taxes - The Potential Capital Gains Increase

Investing Insights

There are a lot of questions about President Biden’s Build Back Better plan and potential tax law changes, including an adjustment to capital gains taxes.

One of the proposals Congress is considering sets the top rate for taxing capital gains at 25%, up from 20% under current law. Another would raise the capital gains tax rate to 39.6% for taxpayers earning $1 million or more. Still another would make the change to capital gains tax retroactive, with a start date of April 2021.1,2

At this point, many ideas are being considered as legislators look for ways to raise revenue to help pay for the Build Back Better plan. Corporate tax rates, individual tax rates, estate tax rules also are on the negotiating table.

As difficult as it may be, the best approach is to wait and see. It would be hasty to make any portfolio changes based on current discussions. An ambitious investor would have to guess what policies will be in the final bill, estimate the financial impact, and determine any needed portfolio changes. That’s a tall order.

This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and financial professionals before modifying your capital gains tax strategy.

If you have any questions for us, please don't hesitate to reach out.

CONTACT

  1. https://www.bloomberg.com/news/articles/2021-09-13/house-democrats-pitch-capital-gains-tax-of-25-for-high-earners
  2. https://www.bloomberg.com/news/articles/2021-06-16/yellen-argues-capital-gains-hike-from-april-2021-not-retroactive

About the Author

Jason P. Berube is the Founder and CEO of Cornerstone Wealth Consulting Services, LLC in the Boston area. He specializes in helping contractors build wealth and protect their family business for generational growth.  

This content is developed from sources believed to be providing accurate information, and provided by Cornerstone Wealth Consulting Services LLC. The information in this material is not intended as investment, tax, or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.