Will the Capital Gains Tax Be Raised? - Adviser Investments

Will the Capital Gains Tax Be Raised?

What would it mean for investors if capital gains taxes were increased? Portfolio Manager Charlie Toole discussed potential tax policy changes in our recent webinar,* Looking Beyond the Election to the Recovery’s Future.

Please enjoy the excerpt below and click here for the full webinar replay to hear more.

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Charlie Toole:
We’ve heard a lot of talk about taxes being higher in the future, and we get this kind of question all the time.

Certainly, there’s a plan from one of the candidates, former Vice President Biden, who has pledged to raise taxes if he wins the election. But there are multiple branches of government that determine what the tax policy will be. So, we don’t know what the tax policy will be, but if long-term capital gains taxes are increased, the plan that’s been put forward is that they would rise from 20% to ordinary income rates, which would be up near 40%, for those Americans with incomes greater than $1 million. So, it’s only impacting the top 1% of Americans.

Whether long-term capital gains are taxed at 20% or 40%, we are very aware of the gains that are realized in our client portfolios. Our goal as investment managers, and the goal of the portfolio managers that we invest in, is to maximize your returns after taxes. We’ve been doing that for 25-plus years and we’re going to continue to do that in the future as we go forward.

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Click here for a replay of Looking Beyond the Election to the Recovery’s Future. Please contact us at (800) 492-6868 to learn more about comprehensive wealth management solutions.

*Webinar recorded after the market closed on Wednesday, October 28, 2020.

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