June 4, 2021
A lot of attention in the wealth management industry has been paid to President Biden’s efforts to raise taxes, especially those related to inheritance and capital gains. A quick refresher on the changes: Biden wants to create a step-up in basis at the time of death, meaning heirs would use the original price of the asset as their basis for taxes, not the price at the time of inheritance, resulting in a massive tax increase. Perhaps even more pressingly is the hike in capital gains tax up to 39.6% for those earning over $1m. But here is the new surprise in Biden’s recent budget: the changes will be retroactive to April 28th.
(Washington)
FINSUM + Magnifi: This is a very significant change, but not an atypical one, as it is standard procedure to try to minimize tax minimization strategies. That said, experts think Congress will likely not apply this retroactive date to whatever legislation materializes.
Other news today: These are the Best Value Stocks in a Hot Economy and Be Careful of the Suffocated Junk Bond Market
{{cta(‘031ca73e-408c-41ef-9886-bfe7cd5553d7’)}}
Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of June 2021, 380,000+ users with $534+ Billion in Assets Under Influence, have used Magnifi over 3,800,000 times. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide brokerage or custody services.]
