You’ll encounter zero limits. Thus, which is trick for the audience, because this was especially great for some people that have high house otherwise higher taxation says, where many of our own subscribers was in fact striking you to $10,one hundred thousand restriction. Currently, there’s absolutely no restrict into the itemized write-offs. There’ll be a limit going forward. Then investment increases rates. Now, this can be on people who have earnings over so many cash. But when you offer a corporate into the a year, there is lifestyle situations that takes place that the could happen to people, the main city growth rates happens of 20% so you’re able to 39.6%, which is the large ordinary income tax rate. Very, with the changes, there are some confident things when you look at the right here. To be able to subtract a great deal more a property fees than you can in earlier times. A few more people will probably itemize write-offs in the years ahead. Along with the reintroduction of these individual different, families with many college students would also work with.
Doug Fabian: Susan, give us a feel on the capital gains tax increases. I mean, we’re right now at the lowest capital gains tax rates in our lifetimes. 15% people who make over a million, is it, Susan? That goes to 20%. But what is the Biden administration proposing relative to capital gain rates?
Susan Travis: Again, it’s for people that make over a million dollars that the capital gains rate will go up to 39.6%. Now, the 3.8% net investment income tax is going to still be there, too.
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Doug Fabian: So, there will be no break on capital gains for the wealthy, if these changes were to go through. So, this is obviously serious changes and significant to our client base, and we’re bringing it up for people to start thinking about, “Okay, is there some change that I should make to my portfolio? Are there some assets that I should sell?” Because one of the things that we have in the current environment, we know what the rates are, and President Biden can’t wave a magic wand and make these changes that have to go through the Senate. And so, that’s a battle for another day, but we’ll certainly be monitoring that situation for our clients. So, Susan, let’s switch gears a little bit. I want to talk about today’s topics of estate and tax planning in the context of women, and why are these subjects of high relevance to women?
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Susan Travis: Well, there’s many reasons actually. We’ve touched on a few of them. The average age that a woman becomes a widow is actually in her 50s. I know this personally. I became a widow when I was 41, and even though I’m in the financial services industry, this is a very tough emotional time to go through. And so, most women are going to have to go through this, and they need a trusted advisor that can think about all these different things that they should be doing with their financial picture. And it doesn’t matter how old you are, as I just stated. You need to be able to navigate all the choices that you have. But we don’t expect you to stay on top of all the changes in the tax law.
For example, HSAs, there can be probably loads of young adults that consider, “Oh, I don’t need to go to the doc. I’m not going to place cash in an HSA.” Better, talk with an advisor, and you may we’re going to emphasize both women and men one to maybe you should put the restrict you could potentially when you look at the an HSA health checking account. Because that cuts back your income, plus it offers efficiently, any type of their income tax bracket is, it offers that much off an excellent deduction otherwise a savings, I will state, on medical expenditures. It’s no offered make use of it or if you dump they. Therefore, payday loans in Virginia you can turn an enthusiastic HSA membership towards the some other coupons plan for medical costs possibly in your advancing years. You really need to contemplate all these one thing, as there are too many subtleties of all things that is available to choose from, once the there’s nothing ever only cut and dry and you can doesn’t transform.