Accounting is a cycle, and that cycle starts with legislation. When the President and Congress are in negotiations, it is important to keep an eye on what is coming down the pike in order to prepare for the next year. In many cases, Congress does not pass what is being talked about, but they do pass a compromised or moderately altered version of the original offer. This is because during negotiations between the Democrats and Republicans, there is a lot of, well, politicking. If you prefer not to or simply do not have the time to stay abreast of what is going on at the Capitol keep an eye on my blogs because I will put out updates as negotiations progress.
Most recently: President Biden originally called for taxing capital gains of millionaires at a 39.6% rate, but seems to be supporting the proposed House plan which has a top rate on long-term gains from 20% to 25%. It would also seem that Biden's idea of taxing unrealized capital gains at death is not going to have much support. The proposed House plan would apply to capital gains made after September 13, 2021. Democrats are calling for it to being in 2022.
