President Biden’s American Families Plan proposes increasing the tax rate on long-term capital gains for taxpayers earning more than $1 million. The U.S. income tax on your capital gain could be as high as 43.4% on long-term capital gain income. The maximum California income tax rate is 13.3%, which creates a combined Federal and state tax rate of 56.7%. Contributions of appreciated long-term capital gain property are limited to 30% of AGI (20% of AGI for contributions to private foundations). Candidate Biden also proposed to allow the deduction of all state and local income tax.

Source: Forbes May 03, 2021 15:00 UTC