Tax and Estate Planning Today – In Light of Proposed Legislation

June 7, 2021 on ForYourBenefit, host Bob Leins, CPA® welcomes David De Jong and Steve Widdes, tax and estate attorneys with Stein Sperling Bennett De Jong Driscoll PC.

The Administration would extend the 2021 broadening of the child tax credit, dependent care credit and earned income credit beyond the current year.
Final legislation, if enacted, may look a lot different than the proposal as Republicans and some “red state” Democrats oppose large portions; many Democrats from high taxing states will oppose any bill which fails to restore the full deduction for state and local taxes.
The Administration is proposing an increase in ordinary income rates for those making over $400,000 per year as well as increases in capital gain and corporate tax rates.
The Administration would limit the like kind exchanges of real estate where there is more than $500,000 in gain.
The Administration would effectively limit the step-up in asset basis for larger estates upon death by taxing the built-in gain.

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