Tax,
Corporate
Sep. 17, 2021
Biden’s retroactive 43.3% capital gains tax hike looms
President Joe Biden proposed a 43.4% capital gain rate, but it is supposed to hit only those earning $1 million or more. Of course, if you bought a house many years ago — or if you bought a cash of bitcoin at a low price, that $1 million figure may not look so high after all. You could still be impacted. The top ordinary income rate is 37%, and the president wants to get it back up to 39.6%.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Up until now, the federal income tax rate on capital gain has been zero, 15% or 20%, depending on your income. The long-term capital gain tax is graduated, 0% on income up to $40,000, 15% over $40,000 up to $441,450, and 20% on income over $441,451 (in some cases, add the 3.8% Obamacare tax). In some cases, you add the 3.8% Obamacare tax, but at worst, your total tax bill is 23.8%.
Of course, in California, there is no difference between c...
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