Biden's Proposed Tax Changes And What They Mean For Entrepreneurs

Tiffany and Jarrod talk about President Biden’s initial round of tax changes.

What this episode is about: A general discussion on President Biden’s initial round of tax changes, how they may impact entrepreneurs and how entrepreneurs can plan for the potential developments ahead.

1. Successful Sip [1:08]
2. Introduction of the topic of President Biden’s initial round of suggestion for tax changes [2:23]
3. Discussion of the elimination of the ability to exchange real estate without tax and how the 1031 exchange might be on the chopping block for amounts over $500,000 of gain [3:44]
4. Conversation about how capital gains will be taxed at ordinary income above one million dollars. If the proposal is adopted as passed, it could effectively double the applicable tax rate from its current status [6:57]
5. Dialogue about the top marginal rate going up from 37% to 39.6% [9:22]
6. Discussion of how these changes may likely take effect for January, 2022 and how now could be a good time to get the deal done that you may be on the fence about [10:39]
7. Thoughts from an estate planning perspective, the elimination of the step-up on cost basis at death and how currently, heirs do not pay capital gains tax. Example using Apple stock [11:55]
8. Discussion about other changes: applying 3.8% Medicare tax to income over $400,000 and additional resources to increase audits for households that are over $400,000 [13:44]
9. More emphasis on capital gains as ordinary income and what you can do about it this year and in future years. Strategies and considerations. With whom do you connect on your personal board of advisers to help with planning around the possible, proposed changes [15:55]
10. Touching upon qualified small business stock and emphasis on checking to see if you qualify as “exempt” as the law is currently written [16:48]
11. Conversation about checking with your CPA for a reorganization of your cap table, with an eye toward 2022 tax compliance [17:53]
12. Discussion of installment sales to get the capital gains treatment, examples given [19:59]
13. Thoughts on now being the time to get on CPA calendars for late May and early June to start looking at some of these issues and to reach out so that you feel informed and aware [22:23]

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