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July 2, 2021

21% and Rising: What Tax Pros Should Consider with Higher Rates

By C. Wells Hall, III, Drew Hermiller

Accounting Today

In an article for Accounting Today, Nelson Mullins partner C. Wells Hall, III and associate Drew Hermiller discuss the specter of increases in the corporate, capital gains, and individual tax rates as business owners, investors, private equity firms, and their tax advisors attempt to plan for the possible enactment of tax changes proposed by the Biden administration.

Typically, tax cost is merely one item on a long list of regulatory considerations that business advisors and investors must analyze when counseling clients who are starting, operating, owning, or selling a business or buying or selling capital assets. However, Hall and Hermiller write, “The magnitude of the proposed rate increases is likely to push tax rate considerations to the top of that list in 2021.”

Hall and Hermiller analyzed common, high-level client decisions where tax cost could have major implications. These include when to sell, choice of entity, and tax deferral and tax elimination structures.

To read the full article, please visit Accounting Today here.