• About Us
  • Our Team
    • Leadership
    • Company Directory
  • Industries
    • Closely Held Businesses
    • Not-For-Profits
    • Real Estate
      • Affordable Housing
      • Commercial Real Estate
      • Tax Credits and Incentives
        • Historic Tax Credits
        • Low-Income Housing Tax Credits
  • Services
    • Accounting Services
      • Outsourced Accounting Services
      • Bookkeeping
      • Training and Consulting
      • Accounting System Consulting
    • Assurance
      • Audit, Review, Compilation
      • Agreed-Upon Procedures
      • Employee Benefit Plans
    • Consulting Services
      • Internal Controls
      • Management Assistance
    • Tax
      • Business Tax
      • Individual Tax
      • State and Local Tax
      • Estate and Trust Planning
      • Business Valuation
    • Mahoney Development Services, LLC
  • Resources
    • Accounting and Tax Resources
    • Real Estate Resources
      • REST Easy with Mahoney December 2022
      • REST Easy with Mahoney October 2022
      • REST Easy with Mahoney July 2022
    • Blog
    • Peer Review
  • Careers
    • DEIB/Community
    • Current Openings
    • Internships
  • 651.227.6695
  • info@mahoneycpa.com
  • Client Portal
  • Remote Assistance
  • Payment
CONTACT
Mahoney CPAS logo
  • About Us
  • Our Team
    • Leadership
    • Company Directory
  • Industries
    • Closely Held Businesses
    • Not-For-Profits
    • Real Estate
      • Affordable Housing
      • Commercial Real Estate
      • Tax Credits and Incentives
        • Historic Tax Credits
        • Low-Income Housing Tax Credits
  • Services
    • Accounting Services
      • Outsourced Accounting Services
      • Bookkeeping
      • Training and Consulting
      • Accounting System Consulting
    • Assurance
      • Audit, Review, Compilation
      • Agreed-Upon Procedures
      • Employee Benefit Plans
    • Consulting Services
      • Internal Controls
      • Management Assistance
    • Tax
      • Business Tax
      • Individual Tax
      • State and Local Tax
      • Estate and Trust Planning
      • Business Valuation
    • Mahoney Development Services, LLC
  • Resources
    • Accounting and Tax Resources
    • Real Estate Resources
      • REST Easy with Mahoney December 2022
      • REST Easy with Mahoney October 2022
      • REST Easy with Mahoney July 2022
    • Blog
    • Peer Review
  • Careers
    • DEIB/Community
    • Current Openings
    • Internships
Facebook
Twitter
Linkedin

Mahoney logo transverse
  • About Us
  • Our Team
    • Leadership
    • Company Directory
  • Industries
    • Closely Held Businesses
    • Not-For-Profits
    • Real Estate
      • Affordable Housing
      • Commercial Real Estate
      • Tax Credits and Incentives
        • Historic Tax Credits
        • Low-Income Housing Tax Credits
  • Services
    • Accounting Services
      • Outsourced Accounting Services
      • Bookkeeping
      • Training and Consulting
      • Accounting System Consulting
    • Assurance
      • Audit, Review, Compilation
      • Agreed-Upon Procedures
      • Employee Benefit Plans
    • Consulting Services
      • Internal Controls
      • Management Assistance
    • Tax
      • Business Tax
      • Individual Tax
      • State and Local Tax
      • Estate and Trust Planning
      • Business Valuation
    • Mahoney Development Services, LLC
  • Resources
    • Accounting and Tax Resources
    • Real Estate Resources
      • REST Easy with Mahoney December 2022
      • REST Easy with Mahoney October 2022
      • REST Easy with Mahoney July 2022
    • Blog
    • Peer Review
  • Careers
    • DEIB/Community
    • Current Openings
    • Internships
Facebook
Twitter
Linkedin
Tax Legislation

How could the latest Biden tax plan affect you?

By Mahoney 

Can the Democrat’s agree on a reconciliation bill?  President Joe Biden’s tax proposal continues to be revamped as they inch closer to the finish line.  And it appears that a majority of former President Donald Trump’s 2017 tax cuts will remain in place.  

It is still unclear what measures will make the final cut as negotiations continue.  What revenue-raisers will pass to help pay for the $1.75 trillion social-spending bill?  The White House recently released a fact sheet including the expected components.  The fact sheet indicates that some of Biden’s core proposals, such as increasing the corporate rate, the top individual income tax rate, and the capital gains rate, are likely out, while other unique ideas, such as a minimum tax on the profits of corporate financial statements and a surtax on millionaires, are taking their place.

PROBABLE

  • 15% corporate minimum “book” tax
  • 15% global minimum corporate tax
  • Expansion of 3.8% investment income tax
  • IRS audit expansion
  • Tightening of international corporate tax rules
  • Limitation on business losses
  • Surtax on millionaires
  • Levy on corporate stock buybacks

UNLIKELY

  • Billionaire’s tax
  • IRS bank account reporting
  • Eliminating carried interest
  • Corporate rate increase
  • Higher top individual tax rate
  • Capital gains rate increase
  • Estate tax expansion

DEFINITELY NOT

  • Eliminating step-up in basis on inherited assets

Democrats are also considering a five-year suspension of the $10,000 deduction limitation for state and local tax (SALT) on the federal return.  Democrats have been looking at several options for SALT relief and the temporary suspension has become the leading option in discussions surrounding the SALT deduction limit.  One option under consideration is suspending the cap for all taxpayers from 2021 to 2025. The $10,000 cap would then be reinstated from 2026 to 2030. Another option lawmakers are considering is suspending the cap for 2022 and 2023 and re-imposing the $10,000 limit for 2024 through 2027. However, there is currently some pushback in Congress which could be enough to block the bill.

At this point, it is impossible to say which proposals will survive and be enacted into law. 

For additional considerations, please reach out to Kari M. Erickson, CPA, MST, Director, or contact our Tax Solutions team at Mahoney to be of help to you in any way.


Ten Time-Saving Steps for Your 2021 Business Tax Preparation
Previous Article
Apartment Building
Low-Income Housing Inflation Adjustments for 2022
Next Article
  • Categories

    • Accounting
    • Accounting Solutions
    • Affordable Housing
    • Assurance
    • Career
    • Employee Benefits
    • Firm News
    • Mahoney Times
    • Not-for-profit
    • Quickbooks
    • Real Estate
    • Tax Legislation
    • Tax Strategies
    • Young Professionals


INDUSTRIES

Closely Held Businesses
Not-For-Profits
Real Estate

SERVICES

Accounting Services
Assurance
Consulting Services
Tax

ADDRESS

10 River Park Plaza, Suite 800
Saint Paul, MN 55107
(651) 227.6695
Fax: (651) 227.9796
info@mahoneycpa.com

Be the Next logo
Facebook
Twitter
Linkedin

© 2022 Mahoney | Privacy Policy

Mahoney Ulbrich Christiansen & Russ, PA