The Financial Benefits of Partnership

Proposed Federal Changes Significantly Increase Capital Gains Tax Burden 

With the current administration’s proposed tax plan, long-term capital gains, personal income of high-wage earners, and business income will all be taxed at much higher levels. Physicians who are evaluating partnership opportunities should keep a close eye on how this tax increase plan progresses through Congress and the timing with which it may be enacted. The proposed plan:

  • Raises individual federal income tax rate for taxable incomes above $400,000 from 37% to 39.6%.
  • Taxes long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6% on income (excluding state income taxes) above $1 million and eliminates step-up in basis for capital gains taxation.
  • Increases the federal average tax rate on capital gains from 19.1% to 27.7%, and the marginal tax rate on capital gains from 22.4% to 33.4%.

CLICK HERE to find out more about how a QualDerm partnership can help you mitigate tax burdens.