After weeks of delay caused by legal battles surrounding the election, at this point, all signs point to the fact that Joe Biden will be inaugurated as the President of the United States of America. As we discussed in detail in a previous episode, Joe Biden's tax plan contains tax reforms that affect taxpayers in numerous ways. In today's episode, Grant dives into some of the tax planning opportunities you should consider in the coming months.
Show Notes
[01:42] The Process of Reforming Tax Rules – How the current political situation and the pandemic may affect Joe Biden's plan to reform the tax code.
[07:22] Retirement Plans – Biden's tax plan includes a new tax credit scheme for 401k plans. Grant reviews what comes under this change and how it may affect people in different tax brackets.
[09:46] Itemized Deductions – How the proposed provisions for itemized deductions leave us in a unique situation and what it means for taxpayers.
[15:06] Accelerating Income and Deductions – Why you should focus on accelerating income and deductions in the coming months.
[17:29] Tax Credit for First Time House Buyers – Grant shares his take on the new tax credit scheme and how to make it beneficial to you.
[19:02] Student Loan Forgiveness – Grant talks about some of the speculations around Biden's plan for student loan forgiveness under the federal student loan program.
[22:00] 1031 Exchanges – How the provisions in section 1031 of the tax code work and how eliminating section 1031 may affect the real estate industry.
[29:16] Long-term Capital Gains – What Biden's tax plan means for long-term capital gains of high-income earners and how to minimize the effect of this proposed tax reform.
[33:51] 401k Plans for Small Businesses – Why small business owners may want to rethink their 401k plans entirely.
Resources
Episode #43: An Objective Review of the Biden Tax Plan:
https://growmoneybusiness.com/podcast/episode43