• The First-Time Homebuyer Tax Credit could return , which would provide up to a $ 15,000 credit for qualified first-time homebuyers .
• Under President Biden ’ s Social Security tax proposal , individuals with Social Security income up to $ 142,800 in 2021 would be taxed , those who make between $ 142,800 and $ 400,000 would not have any additional Social Security tax , and those who make over $ 400,000 would be subject to additional Social Security tax .
Potential Changes For Estate and Inheritance Taxes
• The government could eliminate step-up basis rules that currently apply to inherited assets . Instead , heirs would receive carryover basis on inherited assets , which would lead to higher capital gains ( and tax ) upon sale .
• The lifetime exclusion amount for tax-free gifts could be reduced from $ 11.7 million per individual to $ 3.5 million .
• There could be an increase to the highest marginal estate tax rate to 45 % ( up from 40 %).
For further information on how these tax changes – or potential tax changes – could impact you , your family and your business , please reach out to your Rea business advisor . Our team is well-equipped to help you navigate these changes and more .
by : Ben Froese , CPA Principal
122 Fourth Street NW P . O . Box 1020
New Philadelphia , OH 44663-5120 234.249.3454 ben . froese @ reacpa . com
by : Joss Celuch , CPA Manager
122 Fourth St . NW P . O . Box 1020
New Philadelphia , OH 44663 330.308.6881 joss . celuch @ reacpa . com