Estate and Succession Planning
Dean Mead’s Estate and Succession Planning Department is one of the largest and most respected groups of estate planning attorneys in Florida. We are frequently…
Dean Mead’s Estate and Succession Planning Department is one of the largest and most respected groups of estate planning attorneys in Florida. We are frequently…
Dean Mead’s Tax Department handles tax planning issues for businesses and individuals. The attorneys in our department have extensive experience in a full range of…
Biden has officially been sworn in as the 46th President of the United States with plans to address the Covid-19 Pandemic and implement immigration reform, among other things, within his first few days in office. Another priority item is the promise to overhaul the U.S. Tax Code, which was a large part of President Biden’s campaign. The Biden Plan not only proposes to repeal many of the changes made by former President Trump’s 2017 Tax Cut and Jobs Act (TCJA), but also proposes changes to longstanding provisions in our Tax Code, such as the Section 1031 like-kind exchange provision which was enacted by Congress exactly 100 years ago in 1921. Although there is no tax bill pending before Congress at this time, it is important to understand what the Biden Administration has proposed, what other democrats in key positions have proposed, and how those proposals may affect you if, or when, they come into effect.
Prior to his election, President Biden released his tax plan, “A Tale of Two Tax Policies: Trump Rewards Wealth, Biden Rewards Work.” Some key points from the Biden Plan include:
President Biden also ran on other tax policies that, although not laid out in his official tax plan, have a possibility of making it into his tax Bill. A few important examples include:
In addition to the Biden Plan, Senator Ron Wyden (D-OR), the new chairman of the Senate Finance Committee, has also proposed some dramatic changes to our current tax system. While some of his proposals overlap with the Biden Plan, a major deviation is a theory of taxing certain individuals, estates, and trusts on a “mark-to-market” basis. In our current tax system, an individual is only taxed on income that is realized, for example, when stock or property is sold. Taxing on a “mark-to-market” basis means an individual would be taxed on certain unrealized gains at the end of each year.
The Biden Plan also proposes a number of benefits to certain taxpayers, some of which include:
While we will not know exactly when and how the Biden Administration will propose its promised changes to the Tax Code, it is important to understand these concepts to be ready if and when they affect you or your business.