Any change in presidential administration or big shifts in Congress could change current estate plan impacts, and that’s certainly true now. For business owners in particular, now is a good year to keep your eye on the news or your finger on the speed dial for your business, tax, and estate planning lawyer.
If you haven’t yet scheduled a consultation with your estate planning lawyer for 2021, you need to be aware of potential sweeping changes that could come to federal taxes.
For the first time in nearly 30 years, Biden is contemplating a massive federal tax increase that would raise the corporate tax rate from 21% to 28% and the proposal on the table also considers increasing income taxes for those people who earn over $400,000 a year.
The next spending package will include further details about this anticipated tax increase. This would be the first significant federal tax increase in nearly three decades since the last significant raises to the taxes occurred in 1993.
Another aspect for business owners to be aware of with these possible tax changes on the table has to do with cutting back the preferences that certain businesses get. As of now, for example, LLCs are not subject to corporate taxes as pass-through entities.
If these sweeping changes do come to pass, you will want to have the support of an experienced estate lawyer to help you create a comprehensive strategy for your next steps with regard to your business. Do not hesitate to contact an estate planning lawyer in New Jersey to learn more.