Biden targeting Protected Assets for Taxation: Why is it worrisome for wealthy immigrants?
According to an interview with Joe Biden earlier this year, he exclaimed his displeasure on the fact that the wealthy immigrants of the country today are not paying their fair share of taxes. This is where he suggested some tax amendments to improve the situation and create a balance of tax division amongst the people owning properties in the United States of America, regardless of their residency.
Biden, since the inception of his presidency, has been looking for active sources to reduce the disparity in the social spending capacity of its citizens. To support the same, an increase of the capital gains to approximately 39.6% from a low rate of 20% for anyone who has an approximate annual income of any amount more than $1 million. To know more about this new taxation discussion by Biden and how it can affect the tax payable by you, reach out to tax consultants in New Orleans and other states of the country, or international tax consultants in Toronto or other parts of Canada if you reside there and need advice.
Possible Concerns For The Wealthy
- Lack of possible wealth available to pass on to the future generations in the family, which was the most common reason they enjoyed paying low taxes.
- Any immigrant with property ownership in the United States of America is liable to get affected by the increase in capital gain tax as the tax payable to the government will now be more, especially if the property prices go up and they decide to sell.
- The amount of tax to be paid post-sale will also be determined on the basis of the ongoing exchange rate. This is because the amount of capital gain and the tax to be paid for the same can get affected by this as the exchange rate on the date of property purchase and the rate on the date property is sold is taken into consideration to calculate the overall gain.
- Lastly, for wealthy immigrants who earn a rental income from their protected assets in the United States of America, and you decide to increase the rental earning, it will directly impact the amount of capital gain tax that can be levied on you.
Overall, Biden’s plan to equalize the taxation disparity between the less fortunate and the wealthy by increasing the tax contribution on the wealthy is an important step.
However, the immigrants should know how they can make the most of the given situation. According to expert tax consultants in New York and US tax consultants in Toronto and other parts of the world, in order to not get affected by the proposed increase in capital gain tax, selling off the property at an appreciable value before this year’s end can be beneficial. To understand better, reach out to companies like The Tax and Accounting Company for professional advice.
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