tax

Capital gains tax hikes and stock market performance

No question President Biden’s proposed higher 39.6% capital gains tax rate on those earning over $1 million is making many stock investors queasy, but the stock market impact may be more muted than some expected, according to Goldman Sachs. 

“S&P 500 returns have also been weak ahead of past capital gains tax hikes, but selling was short-lived and reversed afterward” the team, led by David  Kostin, wrote to clients earlier this week. 

  (Courtesy Goldman Sachs/US Weekly Kickstart 4/23/2021)

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COVID tax extensions put St. Clair County schools on watch

Three of the six Illinois school districts to receive the lowest designation for their state financial profiles this year are in St. Clair County.

Delays in receiving property tax payments due to the COVID-19 pandemic account for the low rating, the superintendents say.

Lebanon School District 9, O’Fallon Consolidated School District 90 and Whiteside School District 115 were designated as “financial watch” in 2021. Financial watch is the lowest of four designations for the school district financial profile.

Last summer, St. Clair County pushed back its timeline to collect property taxes by one month to provide financial relief for those

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Stock Market Rally Retreats, Bitcoin Dives Amid Biden Capital Gains Tax Plan; Netflix, Snap, United Airlines In Focus

The stock market rally suffered declines, in part on reports that President Joe Biden will propose nearly doubling the capital gains tax rate on the wealthy. But the Dow Jones, S&P 500 and Nasdaq all closed the week only slightly lower, while the Bitcoin price plunged. Medical plays such as Tenet Healthcare (THC) and Intuitive Surgical (ISRG) soared as earnings rebound with elective procedures. Snap (SNAP) and ASML (ASML) also were earnings winners, while Netflix (NFLX) and United Airlines (UAL) sold off on results.




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Stocks Retreat Amid

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Expenses paid with 2020 PPP loans can be deducted on 2021 tax returns

The IRS announced a safe harbor for certain businesses that received first-round Paycheck Protection Program (PPP) loans but did not deduct any of the original eligible expenses because they relied on guidance issued before the enactment of the Consolidated Appropriations Act, 2021 (CAA), P.L. 116-260, in December 2020.

In Notice 2020-32 and Rev. Rul. 2020-27 (which were obsoleted by Rev. Rul. 2021-2) the IRS provided that a taxpayer that received a loan through the PPP was not permitted to deduct expenses that are normally deductible under the Code to the extent the payment of those expenses resulted in PPP loan

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Wall Street Opens Mixed on Partial Rebound from Tax Shock; Dow Down 50 Pts

By Geoffrey Smith 

Investing.com — U.S. stock markets opened mixed on Friday, regaining some composure after its heaviest fall in weeks in response to reports of a looming hike in capital gains taxes.

A report by Bloomberg indicated that President Joe Biden is planning to raise the marginal rate of capital gains tax to around 40% from a base rate of 20% currently, aiming to raise revenue for a swatch of social spending projects.

The rise would reverse a major element of President Donald Trump’s tax cuts in 2017 and creates an obvious incentive for stock investors to realize gains

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Wall Street stocks turn lower on reports of Joe Biden’s tax rise

Wall Street stocks turned lower following reports that US president Joe Biden planned to raise capital gains tax for wealthy individuals.

The S&P 500 index gave up morning increases and closed the trading day down 0.9 per cent following a Bloomberg report stating that people earning more than $1m would pay a capital gains rate of 39.6 per cent, up from 20 per cent. The tech-heavy Nasdaq Composite followed the blue-chip benchmark lower, falling 0.9 per cent.

The trading day shaped out to the S&P 500’s worst session in about a month, reversing a markets rally that has prioritised euphoric

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Bitcoin falls below $50k as Biden tax plans spark crypto sell-off

Bitcoin crashed 10% to $49,332 (£68,482) on Friday morning in London, Ethereum slumped 11% to $2,227 after hitting record highs of £2,613 on Thursday. Photo: Getty

Crypto markets pulled back sharply after reports US president Joe Biden is planning to raise capital gains tax for the wealthy.

Bloomberg reported on Thursday that Biden is considering nearly doubling tax to as high as 39.6%, an increase from the current 20%. Cryptocurrency investors face higher taxes if Biden presses ahead. 

Bitcoin (BTC-USD) crashed 10% to $49,332 (£68,482) on Friday morning in London, Ethereum (ETH-USD) slumped 11% to $2,227 after hitting record highs

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Dow Drops on Report Biden Seeks Higher Capital Gains Tax

Stocks finished sharply lower Thursday following a report that said President Joe Biden would propose a capital-gains tax of more than 40% for the wealthy.

The Dow Jones Industrial Average finished down 321 points, or 0.94%, to 33,815, the S&P 500 dropped 0.92% and the Nasdaq declined 0.94%.

Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6%, and when coupled with a current surtax on investment income, that means federal tax rates for investors could be as high as 43.4%, Bloomberg reported, citing people familiar with the proposal. 

The president’s plan would lift the

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Stocks trade mostly higher, shaking off capital gains tax increase concerns

 

Stocks rose Friday, steadying after selling off sharply on Thursday following a report that President Joe Biden was eyeing a proposal to increase the capital gains tax rate on wealthy individuals. 

The S&P 500 added more than 1% to reach a record intraday high, after the index dropped 0.9% during the regular trading day for its worst session in five weeks. The blue-chip index ended just short of its record closing high. The Dow and Nasdaq also rose to reverse Thursday’s losses following the report, which suggested Biden was considering increasing the capital gains tax rate on those earning more

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