Seth is back with another installment of “What’s New(s)?” highlighting the topics that he’s following closely which might have an impact on you, as well as some others that he thinks you might find interesting or fun.
President Biden proposed The American Families Plan which has some major income and estate tax implications. For income taxes, it proposes raising the top marginal tax bracket from 37% to 39.6%. Additionally, it proposes taxing long-term capital gains and qualified dividends at ordinary income rates for those with income over $1MM. The proposal also aims to eliminate the step-up in cost basis on appreciated assets at death.
Thinking about buying a house? Be prepared to make a competitive offer… Almost half of US homes are selling within a week of hitting the market.
New York introduced new marginal tax brackets at the state level – as a result, those with over $2.15MM in taxable income may see their tax bill increase accordingly. New York City now surpasses California for the highest tax rate in the country.
According to the Foundation for Financial Planning, the number of one-on-one pro bono sessions increased by 27% during the pandemic. It’s nice to see so many Financial Planners all over the country rolling-up their sleeves and volunteering their time to those who needed financial advice during the pandemic!
Coinbase – a platform for buying and selling cryptocurrency like Bitcoin, Ethereum, and more – officially went public and listed shares on the NASDAQ. Cryptocurrency advocates see this as a massive win for the digital currency market.
There’s a new bill referred to as the Secure Act 2.0 which would increase the age required minimum distributions need to start from 72 to 75. This would be a nice benefit for those who can afford to skip IRA/qualified plan distributions to maximize tax-deferred growth.
There’s momentum in DC to eliminate the $10,000 cap on itemized deductions for state and local taxes paid (commonly referred to as the SALT cap). This would benefit those paying high state income and real estate taxes.
Lastly, a client shared a video with a powerful message that we wanted to forward to everyone. Focus on the coffee, not the cup (you’ll get it once you watch!).