What You Need to Know

• The proposed capital gains tax increase stands to have a larger impact on advisors than other proposed tax changes.
• That is especially the case for those who are looking to sell their firm.
• There are, however, options to avoid paying a huge tax bill, including selling the firm in installments over time.

The capital gains tax increase from 20% to 39.6%, proposed by President Joe Biden to fund his American Families Plan, would not only significantly affect individuals who make more than $1 million annually, but also financial advisors who are looking to sell their businesses, according to Jamie Hopkins, managing partner of wealth solutions at Carson Group and a finance professor at Creighton University.

Of the proposed tax increases, the capital gains tax hike has the largest potential impact to most advisors, he said Thursday in the webinar “A Changing Capital Gains Tax and What Else to Consider During a Sale.”

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