Many wealthy investors are selling their stocks, company shares and other capital gain assets to avoid some of the upcoming capital gains tax.
Personal finance experts are taking a hard look at the new tax laws that are coming down the pipe across the country, especially in California or Washington and encouraging moves into other assets to avoid the high taxes states are implementing.
For example starting January 1st 2022, Washington residents must now pay a 7% tax on the sale of stocks and other assets over $250k. However, other assets such as real estate may be exempt.
New higher taxes are also causing several individuals and companies to move to other states with lower taxes and more friendly business environments.
A tax plan is important for investors in order to maximize their returns and lower costs. A good argument can be made for individuals to consider how their money is spent. Is your state managing the taxes well or can you do a better job of managing your investments for the benefit of others and your family?