With potential tax law changes on the horizon, now is a good time to be certain you are informed and prepared.
- As fiscal stimulus and relief plans continue, Congress and the presidential administration have given guidance on how the revenue needs will be met.
- With highly anticipated potential tax law changes on the horizon, it may be wise to review proposals that could affect your future planning.
- As of May 28, 2021, the Dept. of the Treasury published the “Green Book,” which provides more detailed information regarding the proposals coming from the presidential administration.
With President Biden’s first 100 days in office behind him, revisiting the proposals made during his campaign pertaining to income and transfer tax legislation is worth doing. These proposals, while not enacted, are important to review and consider before any planning strategies are implemented in 2021 as they represent potential changes to current tax laws. As we await further guidance on potential tax law changes, now is an important time to be proactive with your tax planning by familiarizing yourself with proposed items that may impact your future planning.
The most recent Treasury report released on May 28, 2021, an annual report commonly referred to as the “Green Book,” gives a general explanation of the Biden administration’s fiscal year 2022 revenue proposals for “the American Jobs Plan” and “the American Families Plan” and provides new details on proposed items impacting corporate and individual taxes.
The table in this article identifies key areas of income and transfer tax law affecting individuals and families, workers, corporations, and pass-through business entities, as well as those estates potentially subject to federal estate tax. Each of these areas explains the basic tax treatment under current or proposed tax law, highlights key provisions or key considerations, and identifies potential planning considerations.
Please note that certain terminology may be used that requires further or future specificity. For example, a proposal may use the term “filers” and may not delineate whether that denotes a filing status of single, married filing jointly, or another type of filer.
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