Market Watch: ‘You may never see it as good as it is now’: Wealthy Americans prep their finances for a possible Joe Biden presidency — here’s how One San Francisco accountant finishes every client conversation with a discussion about what a Biden administration could mean for portfolios
San Francisco accountant Scott Hoppe had a client who was planning to stretch the sale of founder shares in a tech-sector company over a three-year period.
Instead, the client compressed the installment sale into a one-shot transaction this month.
What accelerated the deal?
The 2020 presidential race. “Assuming all else was equal, that was the driver of the choice,” said Hoppe, principal of the accounting firm Why Blu.
Right now, Hoppe’s client, worth between $10 million and $20 million, will be taxed on capital gains at a rate of 23.8%.
If Democratic candidate Joe Biden beats President Donald Trump — and Democrats retain the House of Representatives and flip the Senate — that client could have potentially been staring at a 39.6% tax rate on two out of the installment sale’s three years.
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WNU Editor: The Biden campaign has made it very clear on what they want to do when it comes to taxes …. Biden’s plans would increase revenue by $3T, spending by $5T: analysis (The Hill). More here …. Biden proposes $5 trillion in new spending, undaunted by Trump’s massive deficits (CNN), and here …. Biden platform would raise taxes by $3.4T, study says (FOX News). And while Biden’s supporters are saying these tax increases will not impact most Americans …. Biden’s tax plan won’t raise many Americans’ taxes, unless you’re rich (Business Insider), when you throw around the numbers that the Biden team are doing right now, the only way that they could reach their goals is to tax the middle class.