The Biden administration has released the Green Book, which details what they wish for as changes to the way Capital Gains are taxed. Here is a quick summary in contrast to existing laws.
Current law Green Book Proposal
Minimum tax 20% 20%
Maximum tax 20% Max ordinary income rate (over $1 million) Now 40.8%
When tax is due When assets are sold When assets are sold, gifted
are inherited , or an irrevocable trust is funded
Exclusions $11.7 million $1 million
Transfer to Spouse Transfer to Spouse
Transfer to Charity Transfer to charity
Transfer to Split- Percent of Split interest trust
Interest Trust deemed going to charity
Step-up basis In Estate When capital gains tax is paid
Family Business Due when Sold Due when family business is
sold or stops being a family
Business
The effective date of these changes is December 31, 2021.
So now we wait and see what Congress does with this proposal, which is much like some of the changes President Obama proposed.