A Tax And Financial Planning Opportunity Is Closing

Published Wednesday, June 30, 2021 at: 9:56 AM EDT

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From the perspective of a financial professional, the window of opportunity to act before taxes are hiked is about to close. The plan to end the step-up in basis on inheritances is perhaps the most significant change.

Other tax proposals President Biden campaigned on include a sharp reduction in the favorable treatment on profits from investments, a new top tax rate of 39.6%, and an expansion of the 12.4% Social Security tax on tax-filers who earn more than $400,000 in adjusted gross income annually.

At the time this was written, the details of the new taxes were still unknown. The elimination of the step-up in basis was still an open question but politics were dictating the timeline and dimensions of the tax changes.

It’s possible the tax hikes about to be negotiated in Congress could be retroactive, which would render defensive planning measures fruitless. That’s unlikely, but the window of opportunity to act is closing.

If your annual income is higher than $400,000 or your family has an estate worth more than $3.5 million, please let us know if you have questions.


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This article was written by a professional financial journalist for StoneCrest Wealth Management Inc and is not intended as legal or investment advice.

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