Our biggest client is John and Marsha Washington. John and Marsha have individual taxable income in excess of $100,000,000 and own 20% of a corporation which earns $300,000,000 per year. Their stock basis in the Corporation is $50,000,000 but the fair market value of their 20% interest is
$700,000,000.
John and Marsha have heard that President Biden wants to increase tax rates and also impose a “Billionaire Minimum Tax” on wealthy taxpayers.

ISSUE: While no legislation has been passed as of yet, explain how some of President Biden’s tax proposals would affect John and Marsha. Include calculations showing how their tax burden would increase.

CONCLUSION:

BASIS FOR CONCLUSION:

PLEASE HELP MAINLY concerned for the calculations but if you can do all please do