June 7, 2021

In April 2021, President Biden announced the “American Families Plan,” which included some significant tax law changes. Among the proposed changes included in the “American Families Plan” was the increase of the tax rate that would apply to long-term capital gains, significant limitations on the amount of gain that could be deferred on the sale of real estate under the like kind exchange rules of Section 1031 of the Internal Revenue Code (the “Code”) and a proposed tax event on certain investment assets that are transferred as a result of a death of the owner.

On May 28, 2021, the United State Department of Treasury issued a report entitled “General Explanation of the Administration’s Fiscal 2022 Revenue Proposals. Similar reports are issued each year by the Department of Treasury as part of the annual budget process and these reports are generally referred to as the “Green Book.” What is relevant is that the Green Book issues on May 28th included more details on tax law change previously proposed in President Biden’s “American Families Plan.”

A summary of the significant tax law changes proposed in the Green Book is below.

View the full update here.