The proposal would also increase the personal exemption amount for foreign currency gain from $200 to $500, indexed to annual inflation rate. Simplify foreign exchange gain or loss rules for individuals by allowing use of an average rate for the year to calculate compensation received in foreign currency.The proposal would not apply to individuals with adjusted gross income below $400,000 ($200,000 for married individuals filing separate returns). Require 100-percent recapture of the deprecation deduction as ordinary income for certain depreciable real property.End tax deferral for Internal Revenue Code section 1031 like-kind exchanges for each taxpayer with gains in excess of $500,000 ($1,000,000 for married individuals filing a joint return).Treat carried interest as ordinary income for partners with taxable income (from all sources) in excess of $400,000.Impose a minimum tax of 20 percent on total income, including unrealized capital gains for all taxpayers with wealth in an amount of more than $100 million.The proposal would be effective for gains on property transferred by gift and on property owned at death by decedents dying after December 31, 2022, and on certain property owned by trusts, partnerships, and other non-corporate entities on January 1, 2023. The donor or deceased would realize a capital gain at the time of transfer. Treat transfers of appreciated assets by gift or death as realization events.The proposal would be effective for gains required to be recognized and for dividends received on or after the date of enactment. Tax long-term capital gains and qualified dividends at ordinary tax rates for taxpayers with taxable income in excess of $1,000,000, but only to the extent that the taxpayer’s income exceeds $1,000,000 and $500,000 for married filing separately, indexed for inflation after 2023.Raise the top individual income tax rate from 37 percent back to its previous rate of 39.6 percent for taxable income over $450,000 for married individuals filing a joint return, $400,000 for unmarried individuals (other than surviving spouses), $425,000 for head of household, and $225,000 for married individuals filing a separate return.The Treasury’s Green Book includes the following individual income tax proposals and the proposals would be effective for taxable years beginning after December 31, 2022, unless noted otherwise.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |