2025 Shockwave: Biden Proposes Doubling Capital Gains Tax

31 May 2024 · 1 min

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A short YouTube commentary by Donna Genie (uploaded May 31, 2024) summarizing President Biden's 2025 budget proposal to increase the long-term federal capital gains tax rate from 20% to 39.6%. The speaker defines a capital gain (profit from selling investments such as stocks, rental homes, land) and gives a numeric example: a $100,000 gain taxed at $20,000 under the current 20% rate would become $39,600 under the proposed 39.6% rate.

Questions this video answers

39.6% (up from 20%)

Current tax at 20% = $20,000; proposed tax at 39.6% = $39,600

Profit from selling an investment (examples given: stocks, homes, rental properties, land)

Chapters

President Biden has released his 2025 fiscal year projections and his budget ideas, and one of his proposals is to change the capital gains rate from 20% to 39.6%. Yes. Nearly doubling how much tax you would pay on a capital gain. What is a capital gain? A capital gain is profit that you make when you're selling an investment. That could be anything from stocks to homes, like rental homes or properties, land, anything like that. That is going to be a capital gain. So if you sold a and made a profit of $100,000 selling a piece of land, for example, the federal income tax on that would be 20% as long as you've held it for a year or longer. Under these new proposed regulations, your tax bill would go from $20,000 to $39,600. That's a whopper of an increase.