Financial and Economic Brief - May 1, 2021by © Liberty Publishing, Inc.
Top Combined Capital Gains Tax Rates Would Average 48 Percent Under Biden’s Tax Plan
If the new Capital Gains tax rates go into effect it will mean a huge tax increase not seen since the 1920’s. There is also a potentially sinister component which may dramatically affect the estate tax rates currently imposed on the wealthiest Americans. The final outcome is presently unknown; however, it will be essential to review all investment and estate planning decisions. Also, check out the national map to see where your State stands in the national rankings.
Now that Crypto Currency is Reaching a Mainstream Audience – Watch out for Capital Gains Taxes After a Purchase of Goods and Services
For those Americans who are considering investing or buying Crypto Currencies there is a bit of a learning curve involved in making such a decision. Even Crypto terminology is as esoteric as it gets. In addition, there are thousands of Crypto Currencies available. There is no discernable methodology in determining which one people should buy. Certainly, one should exercise extreme caution before making the plunge. And, by all means, Crypto gain, if any, will be taxed.
Mortgage Rates and Home Purchases Continue to Fluctuate
Over the past few weeks demand for new housing and new mortgages has shown a slight decline potentially because the price of homes has increased dramatically over the past twelve to eighteen months. Additional good news is that mortgage interest rates are slightly below 3% for credit worthy borrowers. Now might also be an ideal opportunity for some homeowners to refinance existing higher interest rate mortgages. The FED is presently maintaining an easy money policy that may not tighten until inflation becomes a clear threat to economic pricing.