The year 2020 was an unbelievable time we will long remember, and 2021 began with a bang. The Democrats took control of Congress and proposed massive changes to federal tax policy.  Although the crisis may abate in 2021, the momentum for tax policy change will likely only increase. The “Blue Wave” along with the fiscal stimulus from Congress will have tremendous implications for your clients, given the likelihood for significant tax changes directed toward wealthy Americans. The President confirmed his suggested tax increases in a recent speech to Congress.

This session will provide ideas, tips, and tools to minimize your client’s tax liability.

Learning Objectives:

• Organize a detailed review of President Biden’s income and social security tax policy proposals, including a checklist of planning ideas


• Summarize bracket management, including historically low rates, the scheduled sunset, and the potential rate increases under a Biden administration


• Identify capital gains harvesting to capture a rate advantage with a potential of a 39.6% LTCG rate


• Calculate the mathematics of loss harvesting


• Identify advanced Roth conversions


• Determine the reduced value of itemized deductions


• Determine the reduced value of funding tax-preferenced retirement accounts


• Recall the increased importance of using installment sales


• Describe potential annual market-to-market taxation


• Evaluate the use of charitable remainder trusts to defer and eliminate capital gains


• Determine why you might need to avoid CRTs in 2021


• Determine the use of §453 installment sales to reduce capital gains and how to elect out of installment sale treatment to accelerate gains


• Identify how to use grantor charitable lead trusts to mitigate capital gains


• Recall how to direct charitable gifts to reduce capital gains


• Calculate the “0%" capital gain rates


• Differentiate charitable gifts of appreciated property


• Identify how to use opportunity zones to manage capital gains more effectively