I need to update those interested in regular C corporations that the tax proposal currently before Congress eliminates the complete exemption of section 1202 gains for those earning over $400k. Instead, 1202 gains would revert to pre-2009 rules under which they would be taxed at an effective rate of approximately 16% plus alternative minimum tax for those subject to it. The proposal has a long way to go before it becomes law, but if it does, it will take immediate effect.

Other proposed changes are scaled back from the original Biden plan. Maximum individual rates would increase from 37% to 42.6%; capital gains from 23.8% to 31.8% effective September 13 (except binding contracts in progress); C corporate from 21% to 26.5%; and the effective double tax rate from 39.8% to 49.9%. S corporation income might become subject to self-employment tax. However, asset appreciation at one’s demise would not become taxable income. I’d appreciate further insights from tax specialists.

On another note, I have put together an article on understanding the problems with non-GAAP financial information when evaluating target companies. If you'd like a copy, please email me at [redacted] Best regards, Bill