Attend our live webinars affecting seniors, persons with disabilities and their families.
Not displaying properly? View as Webpage
Updates on President Biden's Tax Proposal
The President and Congress are expected to negotiate tax reform in the fall of 2021. Some of you may be impacted so we want you to know the latest. If it passes, it is to be implemented as part of next year's federal budget.

According to the Tax Foundation, the tax proposals contained in the Biden
administration’s fiscal year 2022 budget, including the American Families Plan (AFP)
and American Jobs Plan (AJP), would levy $2.3 trillion in new taxes on high-income earners and businesses and provide $998 billion in refundable tax credits to low and middle-income households, for a net tax increase of $1.3 trillion.

Change in capital gains taxation. The APF proposes to change the “step-up in basis” rule. When someone dies, their assets transferred to the family members is received at its
market value, meaning that the beneficiary receives it with a new basis. This rule
called step-up in basis has enabled families to pass property down from one
generation to another without paying any capital gains tax. The capital gains from the
purchase of the property by the decedent to the transfer of assets upon date is not

The proposed tax rule provides for an exemption of $1 million on the capital gains
taxation upon death. So, if the decedent transfers assets that have a total of more
than $1 million of unrealized capital gains, the heirs will pay a 39.6% tax for any
unrealized capital gains received that is above $1 million.

There are two exceptions to this new rule: (1) family-owned farms passed down
will be protected with respect to this change, and (2) property gifted to charities.

Change in the real estate capital gains re-investment exception (“1031
exchange”). The plan would limit the present law real estate tax break for “like-
kind exchanges” that allows real estate investors to defer taxation when they
exchange real property. Under the plan, the deferral would end for capital gains in
excess of $500,000.

Change in the carried interest for partnership. The Biden plan also would close
the “carried interest” loophole that partners who are employed by private equity
and hedge funds, as well as other investment partnerships, claim allows them to
receive their partnership interests tax-free and to pay only capital gains tax when
they dispose of their interests, thereby never paying ordinary income tax rates.

No proposed changes for the current Estate Tax. In 2021, the federal estate and
gift tax exemption is $11.7 million with a tax rate up to 40%. This law will “sunset”
on December 31, 2025. Starting January 1, 2026, the exemption will return to
$5.49 million adjusted for inflation, which means it may be about $6 million.
President Biden's campaign included a plan to reduce the exemption to $3.5 million
with an increased maximum tax rate of 45%. This campaign plan is not part of the
tax fall proposed reform.

As the tax plan progresses, we will keep you updated. Meanwhile, please contact us if we can answer questions about how you could be affected.

Yahne Miorini, LL.M
Our Next Complimentary Online Seminars
Saturday August, 7 2021
Estate Planning in Plain English
Why it's Critical to Your Loved Ones
This easy to understand seminar will help you to learn how
to protect your family and wealth

10:00 am - 11:00 am
Protect Your Retirement
Don't let long-term care and probate expenses drain your assets.

11:30 am - 12:00 pm
You may register for one or both online seminars by clicking on the above links or by contacting Alyssa at (703) 448-6121 or [email protected].
Yahne's Personal and Professional Corner

We welcome Alyssa Mathena, our new Client Relations and Marketing Coordinator, in charge of ensuring the best possible client relations. Alyssa is your first point of contact, assisting with setting meetings, welcoming new clients and coordinating seminars/webinars. Alyssa is from central Ohio and a graduate of Indiana University in Bloomington, IN. Alyssa excels in interpersonal communication and team management. She is looking forward to working with you and learning more about the DC area!
Meet Karen Yi, our new Junior Drafter and Estate Planning Paralegal who joined us this month! Karen has years of experience as an Antitrust Paralegal at a boutique law firm in Fairfax, Va. She is replacing Annabel Edelman and will be assisting Lauren Spradlin Harris with planning and drafting estate planning documents. Karen graduated from the University of Virginia in 2016 with a BA in Cognitive Science and a minor in Drama. Her interests include Traveling, Exercising and spending hours on Yelp looking for new restaurants to explore.
Annabel now lives in London, England and is pursuing a career in industrial and organizational psychology, which reflects her major of psychology. We wish Annabel all the best!
Our Philosophy
Yahne Miorini, LL.M
My practice emphasizes the human element, seeking to foster long-term family stability and efficient governance as well as providing wealth preservation and tax planning.

I look forward to your participation in our online seminars!