facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
How Capital Gains Taxes are Changing Thumbnail

How Capital Gains Taxes are Changing

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 (hint!) before modifying your capital gains tax strategy.

  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

To discuss this content further or to ask any financial-life question you may have, we encourage you to reach out to us at 724.942.2639 or schedule a FREE/no-obligation time to chat with an advisor at your convenience.  

Please don't forget to share, and as always... know that BBA is here to help!

We appreciate our relationship with you and look forward to delivering this value weekly!  If you're new to BBA, we welcome you aboard and look forward to getting to know you... Start the conversation!

724.942.2639 | Firm Brochure Client Login