Tagcapital gain

Clinton Outlines Her Capital Gains Rate Hike

Magnifying Glass and TaxBy:  Amanda Wilson

Following up on my post from last week, presidential candidate Hillary Clinton has now provided more specific information on her proposed capital gains rates hike.

For high income filers (couples making at least $465,000 a year), the current 20% capital gains tax rate would not be available for investments held only for one year.  Instead, the following rates would apply:

  • 39.6% tax rate for investments held more than 1 year but less than 2 years
  • 36% tax rate for investments held more than 2 years but less than 3 years
  • 32% tax rate for investments held more than 3 years but less than 4 years
  • 28% tax rate for investments held more than 4 years but less than 5 years
  • 24% tax rate for investments held more than 5 years but less than 6 years
  • 20% tax rate for investments held 6 or more years

The existing 3.8% Medicare contribution tax would also continue to apply.

Clinton to Propose Higher Capital Gains Rates

Magnifying Glass and TaxBy:  Amanda Wilson

Hillary Clinton is expected to propose later this week a revamping of capital gains rates.  While the specifics are not yet released, Clinton’s proposal is expected to increase the current maximum capital gains rate for investments held for only two to three years.  Currently, these investments qualify for a 20% tax rate (23.8% where the Medicare contribution tax applies) as long as the taxpayer has held the investment for at least a year.

Stay tuned!

 

Carried Interests – Here We Go Again

Capitol buildingBy:  Amanda Wilson

Following up on last week’s blog post on carried interests, a new bill was introduced Friday in the House of Representatives targeting carried interests.  This bill, H.R. 2889, is titled the Carried Interest Fairness Act of 2015.  One of the main consequences of the bill is that, if enacted into law, partners that provide investment management services to an investment partnership would find their distributive shares of capital gains recharacterized as ordinary income .

This is not the first time that legislation has been introduced targeting carried interests and, if unsuccessful, it is unlikely to be the last.  Carried interest income continues to be a target of the Obama administration and members of Congress.

For now, we will monitor this bill and let you know if there are any developments.

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