President Biden announced his individual tax proposals this week, which will potentially include a 39.6% long-term capital gain rate, gain realization at death and for gifts, along with significant changes to the estate, gift, and GST provisions of the tax law.

Join Bob Keebler for a first look at these critical new developments, including the following:

Income Tax Changes:

• Understanding the 39.6% LTCG tax rate when income exceeds $1,000,000 and how to plan


• Increase in the ordinary tax rate to 39.6% and what to do now


• Reduction in the benefit of itemized deductions, retirement contributions, and charitable gifts


• Increase in Social Security taxation for those earning over $400,000


• Return of the PEASE limitation


• Potential of market-to-market taxation


• Best planning ideas in 2021, including timing ideas, charitable gifts, harvesting gains, and Roth conversions


• Using charitable remainder trusts to smooth out income


• IRC §453 sales to control capital gains

• Decreases in the gift and estate tax exemptions and GSTT exemption


• Increases in the estate tax rates


• Elimination of GRATs and IDGT sales


• Reduction in valuation adjustments


• Changes to the GST rules


• Inclusion of IDGTs at death


• Planning strategies to address now

• Gain realization at death and gift, including 2021, explained


• Planning with charitable trusts to mitigate gain realization


• Exemptions and exceptions to the general gain realization rule


• Taxation of gifts to charity and CRTs


• Understanding the 21- and 30-year gain rule for existing and new trusts


• Taxation of 2021 gifts?


• Will the gain realization tax cause citizens to expatriate?


• New IRC §6168 payment election

• Name the tax proposals of President Joe Biden 


• Identify potential income tax changes, estate, and gift tax changes, and gain realization provisions 


• Determine how these proposals may impact you and your clients