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.

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