Today's Tax Strategy Pulse
Updated 2h ago
Roth Conversions Can Trigger a 55.9% Effective Tax Rate for Seniors
A Kiplinger Tax Letter warns that a $60,000 Roth conversion for a 65‑plus couple, which appears safe in the 12% bracket, can actually be taxed at an effective marginal rate of 55.9% because Social Security taxation, capital‑gains brackets, and the senior‑deduction phase‑out all apply to the same dollars. The article urges retirees to model the combined rules before converting.
4 Things Farmers Should Know About A Lesser-Known Tax Deduction
The video spotlights the residual soil fertility deduction, a little‑known tax break that can exceed $1,000 per acre for qualifying farmland, and urges producers to consider it before the April 15 filing deadline. Host Margy Eckelcamp explains four critical points: the credit belongs solely to landowners, not tenant farmers; newer acquisitions generate larger deductions because older purchase dates (pre‑2010) offer little benefit; documented excess fertilizer must be verified through professional soil tests; and a knowledgeable tax preparer is essential to claim the credit. She notes that IRS guidance is absent, yet interest in the deduction has doubled annually since 2020, and lawmakers may codify it in upcoming farm‑bill or reconciliation legislation, according to industry sources. For agribusinesses, leveraging the deduction could offset rising land costs, improve cash flow, and create a competitive edge, while pending legislation adds urgency to secure the benefit under current rules.
Brandy Maben: Put SpaceX in Your Roth? Here's How the Wealthy Do It #Roth
Brandy Maben explains how both novice and affluent investors can leverage Roth accounts to maximize tax‑efficient growth. She advises young earners to allocate roughly half of their 401(k) contributions to a traditional pre‑tax option and the other half to the...
Withdraw Up to $65K Gains Tax‑Free
You can pay 0% in taxes on your investments: 0% long term capital gains rate applies if your taxable income is <= $49,450 (single) or $98,900 (mfj) After standard deduction, you can withdraw $65,550 (single) or $131,100 (mfj) of LT gains from...
🎁 Business Gifts Deduction — Enrolled Agent Exam
The video explains IRS rules governing deductibility of business gifts for professionals preparing for the Enrolled Agent exam. Core rule: $25 per recipient per year, applies to all gifts regardless of total amount. Incidental expenses (packaging, shipping, engraving) are deductible beyond...
ISO 27914:2026: A New Potential Long‑Term Solution for Section 45Q Permanent Secure Geological Storage
The EPA’s proposed repeal of Subpart RR threatens the reporting foundation for Section 45Q carbon‑capture tax credits. ISO 27914:2026, released on April 1, 2026, fills the gap by offering detailed quantification, monitoring, reporting and verification (MRV) standards for permanent geological CO₂ storage. Treasury and...
The 2025 Tax Changes Could Save Small-Business Owners Thousands—If You Know Where to Look
The 2025 tax package delivers the most substantial overhaul for U.S. entrepreneurs since 2017, targeting sole proprietors, LLCs and S‑corporations. It widens tax brackets, expands the SALT deduction to $40,000 and makes the qualified business income deduction permanent. Additional generous...
Mega Backdoor Roth Gains Traction, Offering Up to $72K Extra Savings for High Earners
Financial writers are spotlighting the mega backdoor Roth as a fast‑growing option for high‑income earners. The method lets participants funnel up to $72,000 a year into a Roth account by using after‑tax 401(k) contributions and in‑service conversions, bypassing traditional income...
Fidelity and AARP Warn Retirees of 401(k) Withdrawal Pitfalls, Emphasize Loan Options
Fidelity and AARP jointly warned Americans that cashing out a 401(k) before age 59½ can strip 25‑35% of the amount withdrawn, and urged workers to consider 401(k) loans instead of outright distributions. The advisory comes as Social Security benefits average...
US Tax Deadline 2026: Net Investment Income Tax (NIIT) Explained for Investors
The Net Investment Income Tax (NIIT) is a 3.8% federal surtax on passive income that kicks in when a taxpayer’s modified adjusted gross income exceeds $200,000 for singles or $250,000 for married couples filing jointly. With the April 15, 2026...
Captive Insurance + PPLI: Tax‑Free Crypto Family Office
Captive insurance + PPLI = the crypto family office cheat code. Pay premiums to your own insurer, invest them in crypto, hedge funds, or real estate. Grow it tax-free. Borrow tax-free. Heirs inherit tax-free. It's straight from Buffett’s playbook.
Digital Creators Can Now Receive Tax‑free Tips
Instead of getting paid as a tax advisor, can you earn tax-free tips as a "tax-fluencer"? Final Treasury Regulations include "no tax on tips" for digital content creators, such as streamers, online video creators, social media influencers, and podcasters. https://t.co/FyI6F9noBQ
LLC vs S-Corp: Which One Actually Saves Money
The video explains why a simple LLC structure does not lower a small‑business owner’s tax burden and why electing S‑corporation status can be a game‑changer. Mark J. Kohler, CPA and attorney, argues that without an S‑corp election, owners still owe...
IRS Clarifies $25K Tip Deduction, Adds Santa Impersonators
The IRS finalized “no tax on tips” regs—and clarified who qualifies. Yes, up to $25K in tips can be deducted. But only for certain occupations (now defined), and only for voluntary, reported tips. Santa Claus impersonators made the list. Did your job? 👀 https://t.co/q1z55eZskn
I'm Hosting a Free 2-Hour Business Bootcamp (And You Need to Be There)
Mark J. Kohler, CPA and attorney, is hosting a free two‑hour business bootcamp on April 14 from 3‑5 p.m. PT, aimed at entrepreneurs who need clarity on legal entity selection, tax deductions, privacy, asset protection, and retirement‑account choices. During the live session...
That Tax Strategy You Saw on Instagram Might Not Be What You Think 👀
The video cautions viewers that tax schemes popular on Instagram, such as the so‑called 643B trust, often ignore the legal nuances and can expose users to serious risk if not executed correctly. The presenter stresses that the difference between a concept...
Section 1045 Rollovers: How to Defer QSBS Gains When You Sell Too Early
Section 1045 permits owners of Qualified Small Business Stock (QSBS) to defer capital gains by reinvesting sale proceeds into new QSBS within 60 days. The rollover treats the original gain as unrecognized, reducing the basis of the replacement shares, while...
April 15 IRA Deadline Lets Retirees Add Up to $8,000 with Earned Income, Cutting 2025 Taxes
Taxpayers have until April 15, 2026, to make IRA contributions for the 2025 tax year, and retirees who generate as little as $1,000 of earned income can still add up to $8,000. The contribution can shave thousands off a 2025...
Gen X Workers Are Making 10 Tax Mistakes that Can Cost Them Thousands. How to Fix Them Fast Before Retirement
Gen X workers, now aged 46‑61, face a narrow window before retirement and are prone to ten common tax mistakes that can erode savings by thousands of dollars. Errors range from delaying Roth conversions and mismanaging required minimum distributions to...
IRS Guidance Threatens 401(k) Rollovers to Gold IRAs, Risks Tax Penalties
The Internal Revenue Service released guidance that most gold products are prohibited collectibles in retirement accounts, allowing only 99.5% pure bullion or specific coins like the American Gold Eagle. Violations can trigger immediate taxable distributions, a 10% early‑withdrawal penalty and...
HMRC Keeps ISA Allowance, Giving Savers Up to $22,000 Extra Over 10 Years
HMRC’s renewal of the £20,000 ISA allowance means savers could be up to £17,000 ($21,800) better off over a decade, J.P. Morgan Personal Investing finds. The research highlights the value of early, regular contributions versus lump‑sum timing, prompting advisors to...
BMC Issues Q1 2026 Operations Report Highlighting DAC8 Rollout and Fiscal Shifts
BMC released its Q1 2026 Operations Quarterly Report, flagging the EU DAC8 directive, the final year of the ZEC regime and fresh fiscal reforms as the top drivers of operational change. The analysis shows a surge in advisory demand as firms...
