Capital gains taxes

Senate Democrats are discussing a wider range of tax proposals than President Joe Biden has proposed, including levies on stock buybacks, carbon emissions and executive compensation, as part of a package of measures to help fund a ramping up in social spending.

Key legislators are at odds over how high to increase levies on investment gains.

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Will the giant tax incentive thrive as a tool to defer, minimize and eliminate capital gains tax?

A Treasury Department spokesperson gave an answer that provides clarity for advisors with affluent clients.

The $1 million threshold at which the 23.8% capital gains rate would nearly double has sparked questions — and a strategy for some well-paid professionals.

Clients can begin planning now for potentially higher tax rates.

Most advisors don’t know about the tax benefit for qualified small business stock, which can put millions of dollars tax-free into an entrepreneur-client’s bank account.

Wyden’s proposed legislation would require them to pay tax annually on unrealized gains.

OZ funds can make a good investment better, but they can’t make a bad investment a good one.

Securities-based lending is up sharply as wealthy investors leverage gains in their stock portfolios into low-interest loans for pricey purchases.

Trusts aren’t just for the .01%, as some advisors sell mass affluent and high-net-worth clients on their tax benefits.

The recent change in presidency is set to bring about substantial changes in the way high-net worth individuals are taxed in relation to capital gains.

The administration is aiming at trusts — particularly dynasty trusts, vehicles that wealthy families can use to benefit multiple generations of descendants.

The near doubling of the capital gains tax rate would have a large impact on the net profit from any sale of any capital asset.

It’s counterintuitive, but the cash benefit of delaying payouts can outweigh rate increases, thanks to compounding over time.

Stephen Schwarzman said the risk of an increase in U.S. capital gains taxes has led to explosive growth in potential targets for his alternative investment firm.

A combination of high valuations on companies and potentially higher taxes in the future is proving to be a potent motivator for selling private companies.

The Treasury secretary suggested that if Congress were to pass a capital-gains tax hike effective starting in April 2021, that wouldn’t count as a retroactive increase.

The proposed changes are worrying investors and their tax advisors, especially the possibility of making them retroactive.