“The Evolving Landscape of Capital Gains Taxes under a Biden-Harris Administration,” Bloomberg Tax

January 27, 2021

In an article published in Bloomberg Tax on January 27, 2021, Michael Burwick discusses what effect the Biden-Harris administration and a Democratic-controlled Congress may have on capital gains taxes. 

“The capital gains tax is a fee that the government imposes on profits made from the sale of assets like real estate, stock, the sale of businesses, collectibles, and other assets with increased value—the “gain.” A capital gain occurs where the asset’s total sale price is greater than the asset’s original cost. By contrast, a capital loss occurs when the total sale price is less than the original cost,” Burwick explains. 

Throughout the article Burwick details numerous strategies under the tax code, including Section 1031, charitable remainder trusts (CRTs), family foundations, Section 1202 and more.

“Section 1202, also known as the Small Business Stocks Gains Exclusion, allows capital gains from select small business stock to be excluded from federal taxation. Section 1202, part of the PATH Act of 2015, provides an incentive for non-corporate taxpayers to invest in small businesses. A qualified small business stock held for more than five years prior to sale will have a portion or all of its realized gains excluded from federal taxation,” Burwick continues.

For the full article, click here.

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