With the new Biden administration and the results of the Georgia senate runoff election there may be future tax legislative changes that could affect the wealthy for both income and succession planning. Under the priorities noted by nominated Senate Finance Chairman, Ron Wyden, and the proposals under the new Biden administration, there appear to be three primary proposed areas of tax legislation that may affect clients who are looking to transition their wealth or closely held businesses down to the next generation.
Our goal is to advise clients on what we know the law to be currently and make them aware of potential changes, although we cannot predict the final outcome or the timing of any tax proposals. With a recent comment by Treasury Secretary, Janet Yellen that now is not the time to increase taxes, it appears there may be time for our clients to take advantage of opportunities to plan for the upcoming proposed changes. For instance, there appears to be more pressing issues for Congress to address, such as the coronavirus pandemic and stabilizing the economy, which may provide our clients time to plan ahead for the upcoming proposed tax changes.
Please contact a member of our Wealth Transition Services team if your client wants to take advantage of the time we may have to plan before any potential changes. Review our Transitioning Your Wealth insight for additional information.
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.