1 Oct, 2021

You may no longer gain so much from your capital gains

Accountants are going to have to get creative should the legislation pass. In addition, the marriage penalty is enormous. If I was in that income bracket I would hold off getting married before I take such a large hit. If passed, the new tax law hits married couples hard if they make $450k or more. If two people earn near the $400k each not getting married gives you $350k of income at the lower tax rates than a married couple earning the same.

The proposed 28.8% rate would kick in at $400,000 of taxable income for single filers and $450,000 for married joint filers. That’s around $50,000 below the thresholds for the current 23.8% top rate, which are $445,851 for single filers and $501,601 for married joint filers.

This is the bad news for people with income in the $400,000 to $1 million range—even if it’s from a one-time windfall like the sale of a home or business.

Capital Gains and Capital Pains in the House Tax Proposal – WSJ
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About : Kevin Bae

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