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Biden’s New Tax Plan Surprises with Retroactive Capital Gains Tax Changes
President Biden’s new tax plan, announced at the end of May, included a proposed change to the maximum capital gains tax rate from 20% to the proposed ordinary rate of 39.6%. Moreover, the proposed capital gains rate increase will be applied retroactively, with an effective date of April 28, 2021. While many owners and entrepreneurs were anticipating an increase in capital gains taxes from the Biden administration, most were expecting changes to go into effect no sooner than 2022, providing an opportunity to sell businesses and/or assets in 2021 at current rates.
Benefits of Trive’s Structured Capital Strategy
Partial Sales or Liquidity Events
Through its Structured Capital strategy, Trive has a demonstrated track record of partnering with business owners to help generate partial liquidity from their companies. Our approach allows owners to retain control of their businesses while also participating in the upside generated through Trive’s partnership and the long-term growth of the company.
Tailored and Tax-Efficient Solutions for Middle Market Businesses
Trive’s Structured Capital approach remains infinitely flexible as we seek to tailor bespoke and efficient investment structures for our partners. Whether buying out a minority partner or helping with estate planning or diversification, Trive can create a capital solution that fits the needs of the business. As an example, debt-averse owners can utilize patient, non-cash-paying capital to align with long-term value creation.
Value-Add Partners
Trive’s hands-on approach to investing and experience across a wide range of industries allows us to be a true resource to management. Our investment team and Operating Partners are well-suited to help identify value creation initiatives and execute on organic and acquisitive growth opportunities.
