As the new year begins and the Biden administration takes office, this episode focuses on the timely topic of 2021 tax planning.

David opens with an overview of two tax-related topics: (1) the improvement of the tax-favored asset class of permanent life insurance by a federal law passed at the end of 2020; and (2) the tactic of timely tax loss/gain harvesting – which should be implemented throughout the year, not just in the fourth quarter.

David then brings on his partner Carole Foos, CPA, to discuss the Biden tax proposals, what we might expect in terms of tax changes in 2021, and strategies that can be implemented to leverage advantageous rules and minimize the impact of rules that could negatively affect doctors.

What You’ll Learn:

  • The tax benefits of cash value life insurance and how a law passed in the last days of 2020 may significantly improve this asset class
  • What timely capital gain/loss harvesting looks like – with two examples from 2020 in an actual client portfolio
  • Biden’s tax proposals during his presidential campaign and tax changes we might expect as he takes office with a Democratic Congress, including:
    • Corporate (practice) income taxes
    • Personal income tax rates and deductions
    • Social security taxes
    • Capital gains tax rates
    • Estate/gift taxes
  • Tactics and strategies for physicians to consider in preparation for possible tax changes

Resources:

  • David Mandell: Bio
  • Carole Foos: Bio