Is there a new tax reform coming our way?
This message is relevant to U.S. Fiscal Residents.
We hope you and your family are doing well.
The US elections are here and with it, the possibility of a potential shift in government. Many of our clients have been considering the decision to review their tax structures, especially the ones involving current ‘C’ corporations and compare the scenario with a flow-through form, to have a clear picture in case a quick decision needs to be made.
The proposed changes under Biden’s plan is to increase the corporate tax rate (from 21% to 28%) as well as cause preferential income (e.g., capital gains) of high net worth individuals to be taxed at ordinary rates (from 35% to 39.6%). Irrespective of any possible future reform, in some cases, clients may have ‘C’ corporate structures that could be optimized from a US tax perspective.
Our Tax Impact Study is a valuable tool our clients have at their disposal to plan for their tax and financial decisions, demonstrating what is the best tax scenario for each specific circumstance.
Please contact our Client Relations team to get started.