On Monday, December 21, 2020, Congress passed an additional COVID-19 package that contains $900 billion worth of economic relief for numerous government programs across the US, loans for small businesses, vaccine distribution, and a second round of stimulus checks. The bill is pending the President’s signature and may result in further negotiations and modified terms; we will communicate additional details as they are available. For now, click HERE for a brief overview of key provisions within the (5,500+ page) package approved by Congress earlier this week.
We are pleased to announce that Canal Capital Management is a part of the 2020 RIA Channel Top 50 Emerging RIA List. RIA Database® has been producing Top Advisor lists for Forbes for over 10 years. The Emerging RIA list recognizes growing firms under $500 million in assets under management. Click here to read the full list.
The COVID-19 crisis has resulted in the deepest downturn in global economic activity in the post-war era, but almost certainly the shortest recession. US stocks have rebounded over 50% since the March 23rd lows and the S&P 500 is now up over 5% through three quarters. Historically, the 4th quarter is the strongest quarter of the year, but there are some potential headwinds going into year-end. The largest concerns that we are hearing from clients surround the election and what it will mean for their investments. Please click here to continue reading our 3rd Quarter Newsletter.
In 2018, as part of the Tax Cuts & Jobs Act, the gift and estate tax exemption doubled to historic levels – from $5.6 million to $11.2 million. After indexing for inflation, this year the exemption is $11.58 million, $23.16 million for a married couple, and it is currently scheduled to remain at this level through 2025. Whether it’s due to the $4 trillion of COVID-19-fueled fiscal challenges, or a Blue Wave in November that will give Biden the power to pass sweeping tax reform, many high net worth individuals are cautious that a reduction in the exemption could be coming sooner than 2025 resulting in significant estate tax exposure for their family. Click here to read more and for a chart comparison of the major tax policy differences between the two candidates.
Yesterday evening, the
Senate passed an updated version of the Coronavirus Aid, Relief and Economic
Security (CARES) Act (Stimulus Phase III).
The bill is intended to be a third round of federal government support for
individuals and businesses and is the product of negotiations between Democrats
and Republicans for a bipartisan response to the crisis. Please note that at this time it has not
been enacted into law but is expected to be by Friday, March 27th.
We are fielding a
number of questions from our business owner clients, who have already been
significantly impacted by COVID-19, regarding their options for access to
short- and long-term liquidity to minimize business disruption. If this applies to you, please feel free to
read ahead to the “business” section of this letter.
