Withers’ private client and tax partner, Ed Renn recently spoke with numerous press outlets on the topic of President Biden’s $1.8 trillion American Families Plan and the impact that it will have on America’s wealthiest individuals.
In Business Insider’s recent article ‘Advisors to the Wealthy Are Fielding a Frenzy of Calls from Clients Worried about Estate Planning and Taxes. Here’s How They’re Navigating the Chaos’ Ed commented that “the proposals coming out of the Democratic Party right now, range from mainstream tax changes to basically creating whole new mechanisms to tax wealth and upsetting some basic principles we’ve had in place in the tax system for decades,” and adds that given the slim Democratic majority in the House and no room for error in the Senate, it is unlikely that the more “revolutionary”.
Accounting Today featured Ed for their recent article ‘Biden Calls for Raising Taxes on Capital Gains and Wealthy’. “Clients are very animated by both the capital gains rates and the loss of step up. . . unfortunately, there’s only so much you can do about it. If you’re going to sell the assets soon anyway, sell it when you know the tax rate is low. Nobody’s going to give you a tax cut in the next six months. They may give you a significant tax hike.”
For an interview with Tax Notes for their article ‘Biden’s Next Plan Targets Like-Kind Exchanges, Stepped Up Basis’ Ed commented that, the proposal to eliminate like-kind exchanges for gains in excess of $500,000 would be “a very big deal for a lot of real estate families,” and that with only a $500,000 exemption, that tax break is effectively repealed. “I can’t imagine anyone doing a [section] 1031 exchange for anything less than $500,000” he said.
In closing, Ed Renn shared with Business Insider: “I always tell clients, ‘Live the life you want to live and we’ll do what we can to minimize your taxes based on what you want to do and what you want to accomplish.”
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Biden Calls for Raising Taxes on Capital Gains and Wealthy – Accounting Today