7 minute read
Legislative Update
SUPPORTING SUPPORTING ORGAN ORGANIZED IZED MEDICINE MEDICINE EVERY EVERY DONAT DONATION ION HELPS HELPS The Memphis Medical Foundation provides leadership and educational opportunities for physicians as well as wellness and pu lic health support. We need your help to continue our mission of supportin physicians in all sta es of their career.. The Memphis Medical Foundation provides leadership and educational opportunities for physicians as well as wellness and pu lic health support. We need your help to continue our mission of supportin physicians in all sta es of their career..
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CONTACT AMANDA HARRIS CONTACT AMANDA HARRIS AHARRIS@MDMEMPHIS ORG AHARRIS@MDMEMPHIS ORG 901-761-0200 901-761-0200
Financial Q&A
Q IFinancial Q&A
Protecting your investment portfolio
Q - I am concerned about the possible changes to our current tax laws. What are the major changes the current administration is considering? Are there any actions I can take this year that will to soften the blow if taxes increase?
A - The current administration has been working to develop legislation which they believe will boost the domestic economy. The American Jobs Plan (infrastructure) and the American Families Plan (family benefits, college, healthcare) are two proposals that will have wide-ranging implications. Funding these initiatives will require major changes to the current system which will significantly increase the tax burden for many Americans.
To start, the top individual income tax rate would likely increase from 37% to 39.6%. Action to take: (for high earners) accelerate income into this tax year as much as you can. Long-term capital gains and qualified dividend tax would increase from 23.8% to as high as 43.4% (ordinary income rate of 39.6% plus the Net Investment Income Tax of 3.8%). Action to take: review your taxable investment portfolio and realize gains in this calendar year.
The step-up in basis for inherited property could vanish for gains larger than $1,000,000 for an individual and $2,000,000 for a married couple. Under current law, if the decedent invested $500,000 in stocks and at their death the stocks are worth $2,000,000, their heirs would not pay any tax on the gain. The gain is considered a step-up in basis to the date of death value. In other words, the $500,000 stock portfolio now has a cost basis of $2,000,000. The proposed change would tax the gains over the new limit as capital gains with the top ordinary income tax rate of 43.4%. In addition, the change could cause a serious headache for inherited property where the cost basis is unknown or lost. The stepup in basis has been eliminated two times during the past five decades (1976 & 2010). Both times it was relatively shortlived. Action to take: Develop a plan before you die by donating appreciating assets to charity, harvest tax losses to offset potential gains, adjust asset ownership, and consider trust protection options.
The federal lifetime estate and gift tax exemption could be reduced from $11.7 million per person to $3.5 million per person, and rates are also likely to increase from the current 40% rate to a tiered structure that has a top rate of 65%. The exemption reduction would be a significant change that would force many Americans to deal with estate taxes at death. Action to take: (for anyone with a large estate over $3.5 million) consider giving away appreciating assets to reduce the size of the estate and a possible tax bill. The annual gift exclusion could also be changing from the unlimited $15,000 per individual, per donee basis to an aggregate individual annual limit and a per donee annual limit. Gifts over the limit would still be possible, but they would reduce the lifetime exemption amount. Action to take: consider gifts this year to take full advantage of the exclusion amounts.
It is possible that some of these changes might become retroactive to an earlier date this year, so planning opportunities could be limited. Nonetheless, we suggest a financial health review with your team of advisors to evaluate how the proposed changes might impact your financial plan. Even if passed, tax changes are not always permanent and could potentially be reversed during a future administration.
William B. Howard, Jr., ChFC, CFP 6410 Poplar Ave., Suite 330 Memphis, TN 38119 Telephone: 901-761-5068 Fax: 901-761-2217 whoward@whcfa.com
Q IFinancial Q&A
Legislative Dinner
We celebrated this annual event back in person
A huge thank you to everyone who joined us at our 2021 Legislative Dinner! It was a wonderful opportunity for legislators and physicians to discuss upcoming healthcare bills and how we can shape Tennessee healthcare for the betterment of patients and physicians. Held at the Crescent Club, physicians enjoyed casually mingling with the legislators as well as a question and answer time on specific issues.
Save the date for our Day on the Hill, March 23, 2022, and join us in Nashville for a day of sit-down meetings with legislators where they learn from you, and you can share your viewpoint and experiences.
Rep. Jesse Chism, MMS President- Elect Dr. Christopher Pokabla, Rep. Joe Towns Bluff City Medical Society President, Dr. LaTonya Washington
Rep. Larry Miller, Rep. Dwayne Thompson, Board Members Dr. Lisa Usdan, Dr. Catherine Womack, Dr. David Cannon and Dr. James Wang
Rep. Tom Leatherwood with Board Members Dr. Dale Criner and Dr. David Cannon TMA Lobbyist Julie Griffin with Dr. Cathy Chapman
Dr. James Ensor, Rep. Dwayne Thompson, Rep. John Gilespie, and Dr. George Woodbury, Jr.
SEEING ALL THE DETAILS
doesn’t always require a microscope.
As a mutual malpractice insurance company, SVMIC has
developed a fast and easy alternative for accessing policy
information online. This new web-based tool was designed to
match the responsive service that our policyholders already
experience with us over the phone.
See our new policy management platform at svmic.com/vantage
Give your finances
the same care as you do your patients.
In today’s uncertain markets, having a bank that tends to your financial health is vital. First Horizon Medical Private Banking can help with today’s needs and tomorrow’s goals. Our Relationship Managers offer guidance and solutions tailored to medical professionals. So you can focus on your priority: your patients.
To make an appointment, please contact:
Margaret Yancey
Senior Vice President Medical Private Banking ph: 901-681-2526 myancey@firsthorizon.com
Jeff McIlvain
Vice President Medical Private Banking ph: 901-681-2555 jmcilvain@firsthorizon.com
VANCE STACKS, JR. Three-time cancer survivor
Some days, you need a warm blanket and a shoulder to cry on. On much harder days, you need a nurse that tells you, “You’re going to make it,” and a team of skilled oncologists with an evidence-based approach to back it up. Our individually-focused expertise detected and removed Vance’s breast cancer, but it was our caring team that truly saved him.
At Methodist Le Bonheur Healthcare, we don’t just provide exceptional healthcare, we give every patient the comfort, support and care they deserve.
Read Vance’s story of thanks at methodisthealth.org/thankyou.
