There is a proposal to reform the tax rates impacting both income and capital gains. President Biden’s proposal to tax capital gains at higher, ordinary income tax rates would lead the U.S. to have the highest top marginal tax rate on capital gains in the Organisation for Economic Co-operation and Development (OECD). The proposal would tax long-term capital gains as ordinary income for taxpayers with taxable income above $1 million and raise the top marginal income tax rate to 39.6 percent. Such actions may meaningfully impact investment sales and real estate investment strategies.
On this video link you can watch STRATCO, Lenox Advisors and Raich Ende Malter & Co LLP, & B6 discuss proposed tax law changes impacting the real estate industry.
Client here to review the STRATCO/B6 summary sheet on the proposed changes.