In today's episode Nicholas Olesen, CFP®, CPWA® recaps the latest on tax proposals, how they could change your taxes and savings strategies, and what actions you should consider before the end of the year.
As you have probably already heard, there are tax increases coming and they are far reaching. A few of the highlights we cover in the show:
- Increase the top marginal income tax rate to 39.6% for individuals earning more than $400,000, joint filers above $450,000, and head of household filers above $425,000. This is a HUGE change, as it decreases where the top bracket starts from $600,000 down to $450,000 for joint filers. For those with income over $450,000 you will see a sharp increase.
- Raise the top long-term capital gains rate from 20% to 25% for those same folks (add in 3.8% NIIT and it’s actually 28.8%)
- Add a 3% tax on incomes of over $5 million.
- Add a 3% tax to partnerships and certain businesses, along with removing the QBI deduction. This is another HUGE change for many we serve.
You can find a transcript of today’s show by visiting: https://bit.ly/3oVpkdL
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