Know What's Happening in Tax Strategy
Know What's Happening in Tax Strategy
Tax Strategy Pulse
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Daily
Every morning
Weekly
Tuesday recap
New OBBBA provisions promise $4,000 average tax cut per 2025 filer
The 2025 tax season introduces the OBBBA provisions, delivering roughly $4,000 in average tax savings per filer when individual and business benefits are combined. While tax software captures standard deductions and the Child Tax Credit, it overlooks many manual opportunities such as overtime premiums, auto‑loan interest, and expanded SALT caps, requiring proactive discovery.
Washington’s ESSB 6346, effective 2028, imposes a 9.9% income tax on household AGI above $1 million. Because Section 1202 excludes qualifying small‑business stock gains from federal gross income, those gains never enter AGI and thus escape the state tax. The article illustrates a $12 million QSBS sale that would incur zero Washington tax versus over $1 million without the exclusion. However, the protection hinges on current statutory language and could change before the tax takes effect.
I was today years old when I learned there is a state out there that allows you to file separately at the federal level and jointly at the state level. Thanks, Wisconsin. Your married physicians seeking PSLF really appreciate you. #TaxTwitter
Entrepreneurs whose businesses grow substantially over time can end up with an asset worth many millions of dollars, creating a potential 'problem' of exceeding the estate tax exemption amount. https://t.co/15oEYyCXLW In this guest post, Anna Pfaehler, CFP, AEP, a Partner and Wealth...
Quarterly estimated taxes are a mandatory pay‑as‑you‑earn requirement that many small‑business owners mishandle, leading to either penalties or unnecessary cash outflows. The podcast explains how relying on last year’s income, ignoring safe‑harbor thresholds, and poor bookkeeping cause over‑ or under‑payment....
Vanguard's research showed that you could add 0.30% of annual after-tax returns simply by having a correct asset location strategy: - avoid bonds in brokerage. Keep them in retirement accounts - growth assets in Roth - efficient ETFs in brokerage - avoid REITs in...
Gig work is flexible. Gig taxes? Not so much. No 1099 doesn’t mean no reporting—and some new deductions sound great… until you realize there are rules attached. It’s one of those “simple until it’s not” situations. Here’s what to know: https://t.co/BXKJJZUpEQ
Wyoming enacted a law, effective July 1, 2024, that eliminates state sales and use tax on motor‑vehicle transfers between qualifying family members. The exemption applies only to genuine sales or gifts, and the donor must have paid the original tax when...
One of the dumbest loopholes in the US tax code The IRS says if I make more than $168K filing single or $252K married filing jointly in 2026 I cannot contribute directly to a Roth IRA But I can still get funds inside...
Just the most jackass MFS that I've had to do. Couple lives in TX. They have about $600k in AGI, so they're capped at $10k in SALT MFJ. Their SALT is about $20k. By filing separately, they each get the full $10k...
Heightened geopolitical tensions in the Middle East are forcing U.S. expatriates to consider rapid relocations and the sale of their homes. The article explains how Section 121 of the Internal Revenue Code permits a $250,000 (or $500,000 for married couples)...
If your charitable donation is worth $2 million, you probably shouldn’t try to take a $180 million deduction. Otherwise, as Hancock County Land Acquisitions discovered in Tax Court, you could face a 40% gross valuation misstatement penalty. https://t.co/o1C0zoX0lj
PwC International Tax Services leaders Doug McHoney and Laura Valestin dissect the latest Section 987 updates introduced by Notice 2026‑17. The new rules replace the legacy framework with a simplified equity‑and‑basis‑pool method for calculating foreign currency gains and losses in...
Too many people misunderstand and misuse this tax strategy when it’s way more powerful than you think 💪🏽
Aprio’s interview with Michael Cataldo delves into California’s tax litigation hot spots, emphasizing the split between business and non‑business income and the contentious throw‑out rule. He illustrates how large transactions can skew the state’s single‑sales‑factor apportionment, prompting taxpayers to consider...
In a recent Small Business Tax Savings Podcast episode, tax attorney Ed Lyon demystifies tax‑risk, explaining why legitimate tax planning rarely leads to jail while fraud does. He highlights that the tax code incentivizes certain behaviors, but poor implementation can...
Basis substantiation audits focus on a taxpayer’s outside basis in partnerships and stock or debt basis in S corporations. The IRS examines how partners compute outside basis, especially liability allocations, while S‑corp shareholders must complete Form 7203 to prove loan documentation...
