Treasury Specifics on Tax Proposals - Release Green Book


Today, the U.S. Treasury Department released its General Explanations of the Administration’s Revenue Proposals (“Green Book”), the accompanying documentation on the Biden administration’s revenue proposals. Below you will find a link to access the document, including detailed descriptions of the tax provisions in President Biden’s economic proposals and initial revenue estimates.


Download Green Book


The document includes significant changes that will impact our clients, including:


  • Capital gains and dividend rate: 43.6% [including ACA taxes] for taxpayers with AGI of more than $1 million, effective date: gains required to be recognized after the date of announcement (likely end of April, 2021 making it retroactive)

  • Gift and Death treated as realization event by donor or decedent, triggering immediate taxable income: effective date: gifts or individuals dying after 12/31/2021

  • Corporate rate: 28%, effective date: taxable years beginning after 2021

  • Repeal 1031 tax-free exchanges, effective date: exchanges completed in tax years beginning after 12/31/2021

  • Individual rate: 39.6%, effective date: taxable years beginning after 12/31/2021

  • Carried interest rate: taxed as ordinary income, effective date: tax years beginning after 12/31/2021


These proposals reflect the President’s priorities, but Congress is the ultimate arbiter for what is included in any legislation.


This material is intended for informational purposes only and should not be construed as legal or tax advice. It is not intended to replace the advice of a qualified attorney, tax advisor, or plan provider.

Copyright © 2021 TRC Financial. All rights reserved.

TRC Financial Insurance Services and affiliates are presently licensed to sell insurance and annuity products, as well as other securities products in the following states: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin. Residents of other states should consult with a local registered representative for insurance services and securities products. Proper state registration is mandatory prior to conducting business in that state. This is not an offer to sell securities, which may be done only after proper delivery of a prospectus and a client suitability review. CA License - #0E14614 \ CA License #0B40789 \ CA License #0B52893 - The principle place of business and the state of domicile for TRC Financial is: 1 Post, Suite 150, Irvine, CA 92618. Securities offered through Registered Representatives of M Holdings Securities, Inc., a Registered Broker/Dealer Member FINRA / SIPC. Check the background of this Firm and/or investment professional on FINRA's BrokerCheck. TRC Financial is independently owned and operated and is a Member Firm of M Financial. Please go to www.mfin.com and click on “Disclosure Statement” at the bottom of the home page for further details regarding this relationship. For important information related to M Securities, refer to the M Securities’ Client Relationship Summary (Form CRS) by navigating to https://mfin.com/m-securities.

(949) 509-2940

M_MemberFirm.png