President Obama’s 2015 budget proposal includes several items that would affect how individuals are taxed. As you’re preparing last minute taxes for individuals and families this season, take just two minutes out of your day to get ready for questions from your clients about these proposed changes.
Under the proposed budget, the following changes would take place:
- The value of itemized deductions would be limited to only 28 percent
- This limit would also apply to tax-exempt interest, health insurance, and pension plan contributions
- The capital gain rate would rise from 20 percent to 24.2 percent, plus the 3.8 percent net investment income tax
- A flat 30 percent tax would be imposed on high-income taxpayers
- The benefit of like-kind exchanges would be limited and the ability to use like-kind exchanges for art or collectables would be eliminated