2025 Shockwave: Biden's Bold Move to Double Capital Gains Tax

May 23, 2024

For family businesses, reinvented careers, and modern entrepreneurs who need to make more money, pay less taxes, and outsource time-sucking tasks, Calculated Moves is the CPA Firm and Small Business Growth Strategist that delivers the financial preparedness to make great decisions, boost profits, and keep Uncle Sam off your back because navigating the ebbs and flows of business is a tough job—together we can chart a course to smooth sailing and tranquil waters.

Could Your Investment Returns Be Slashed in Half?

Imagine this: You’ve just planned a grand celebration after selling an investment property for a nice $100,000 profit. But hang on, did you hear what President Biden’s cooking up for 2025? Get ready for a shockwave that might turn your joyous toast into a gulp of worry.

The Proposal That Could Change Everything

I'm Donna Bordeaux with CalculatedMoves.com, and there's a new proposal out that you need to know about. President Biden has just rolled out his fiscal year projections and budget ideas for 2025, and boy, is there a doozy in there—a proposal to nearly double the capital gains tax rate from 20% to a whopping 39.6%. Yes, you read that right.

The Math Behind the Madness

Let’s break this down. Currently, if you sell a piece of land and make a $100,000 profit, you’re looking at a federal income tax bill of $20,000 (assuming you held it for a year or longer). Under the new proposal, that bill would skyrocket to $39,600. That's almost enough to buy a small yacht—or at least a really nice dinghy!

Strategic Planning and Financial Preparedness

So, what's a savvy investor or business owner to do? Well, you might want to consider selling any big-ticket items this year rather than next. If the tax rates change, you'll need to sell investments for a lot more next year to keep the same net profit. It's always best to leave the heavy lifting to the pros, and that's where Calculated Moves comes in.

Keep an Eye on the Horizon

I’m not typically one to take proposed changes too seriously until they happen, but with the 2024 election looming, things are flying around faster than rumors at a family reunion. If a Democrat stays in office or President Biden gets reelected, this proposal could become a reality.

Stay tuned as I keep my ear to the ground and my eyes on the horizon for the latest updates. Together, we'll navigate these choppy waters and ensure your financial future remains as tranquil as possible.

Ready to ditch the headaches of accounting and avoid expensive mistakes? Let Calculated Moves handle the number crunching while you focus on doing what you love. Because when it comes to strategic planning and financial preparedness, it's always best to leave it to the pros.

Donna Bordeaux, CPA with Calculated Moves

Creativity and CPAs don’t generally go together.  Most people think of CPAs as nerdy accountants who can’t talk with people.  Well, it’s time to break that stereotype.  Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux.  They have over 50 years of combined experience as entrepreneurial CPAs.  They’ve owned businesses and helped business owners exceed their wildest dreams.   They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.