Today's Tax Strategy Pulse
New Bill Targets Large Trusts with Annual Withholding Tax
A proposed bill would impose an annual withholding tax on trusts that hold assets exceeding $50 million. The legislation aims to capture revenue from high‑value trusts through this new tax mechanism.
Solo 401(k) Credit Offers Up to $1,500 Cash Benefit for Small Business Owners
Anderson Business Advisors' Toby Mathis and tax attorney Savannah Wallace are urging solo 401(k) sponsors to add an Eligible Automatic Contribution Arrangement (EACA) and claim a $500 annual tax credit. The credit, effective Jan. 1 2025, can deliver up to $1,500 in cash savings over three years for qualifying small businesses.
Navigate 530A Trump Accounts: Avoid Gift and Kiddie Tax Traps
A brand-new savings account for children just went live, and advisors are already fielding questions from clients who don't know what to make of it. Section 530A Trump Accounts have real planning potential, but also real traps, including a gift...
Home Sale Tax Exemption Stuck Since 1997, Needs Update
The capital gains tax exemption ($250k/$500k) on the sale of your home hasn't been adjusted for inflation since 1997. It would be ~$500k/~$1M today if adjusted. With the housing boom since 2020, should Congress adjust it for inflation?
Chevron's Energy Forge Seeks $227 M Texas Tax Break for Gas Plant Powering Data Center
Chevron subsidiary Energy Forge One has filed for a $227 million tax abatement under Texas’ JETI Act for a new gas‑fired power plant in West Texas that will serve a data center. The request, backed by a Pecos‑Barstow‑Toyah school board endorsement,...
The Artistic Works Exemption in CIS: What Contractors Need to Know
HMRC’s Construction Industry Scheme (CIS) excludes work that is purely artistic, meaning contractors do not need to apply CIS deductions to items such as freestanding sculptures or canvas murals that have no functional building purpose. By contrast, artworks that serve...
The Shelter Debate
Recent Statistics Canada data shows 11.3 million Canadians contributed to retirement accounts in 2023, with 5 million using only a TFSA (median $6,500 CAD ≈ $4,750 USD) and 3.8 million using only an RRSP (median $3,420 CAD ≈ $2,500 USD). A further 2.5 million Canadians contributed to both,...
Timber Framing First in Line as Budget Carves Out Negative Gearing
The 2026‑27 Australian federal budget restricts negative‑gearing tax concessions to newly‑built homes, directing investor capital toward the timber frame and truss sector. Existing investors retain current benefits, while the carve‑out targets roughly $12.3 billion (≈$8.1 bn) in annual tax expenditure. The change...
Double Tax Relief for Startups in the 2026 Budget
The 2026 Australian budget revives loss‑carry‑back for companies with less than $1 billion AUD turnover (≈$660 million USD), letting them offset losses against tax paid up to two years earlier, a move projected to reduce revenue by about $2.3 billion AUD (≈$1.5 billion USD)...
How to Unlock the Value of Your Employee Stock Options (and Help Avoid Taking a Financial Hit)
Employee stock options give private‑company executives the right to buy shares at a fixed strike price, turning compensation into a potential wealth‑building asset. Timing the exercise—favoring low‑strike, near‑expiry grants—can protect against downside while preserving upside. Tax treatment varies dramatically: Incentive...
Division 296 Triggers Asset‑Location Overhaul for Australian Wealth Advisors
From 1 July 2026, Australia’s Division 296 will levy an extra tax on earnings from superannuation balances above $3 million (≈ $2 million USD). The change is pushing wealth advisers to move from compliance‑only advice to proactive asset‑location planning for high‑net‑worth clients.
Exchange Funds Enable Diversification While Deferring Capital Gains
On the one hand, continuing to hold the security exposes much of the client's portfolio to the risks inherent in investing in a single company. On the other hand, selling the security in order to diversify may trigger significant capital...
In Liberty Global, the Tenth Circuit Leaves Taxpayers with an Opinion with Unresolved Questions
On April 21, 2026 the Tenth Circuit affirmed that the economic substance doctrine is relevant and applied it to deny Liberty Global, Inc. a $2.4 billion deduction tied to the “Project Soy” transaction, imposing a 40 % penalty. The court rejected the taxpayer’s claim that...
Canada's Bill C-31 Tightens Tax Deferral, Trust Transfers and Crypto Reporting for Wealth Advisors
Canada's Budget 2025 Implementation Act, Bill C-31, cleared its first reading on May 6, 2026, imposing stricter limits on tax deferrals, widening anti‑avoidance rules for trust transfers, and mandating crypto‑asset reporting. The changes force wealth advisors to overhaul planning strategies...
Why Chalmers's Budget Will Rein in the Property Free-for-All
The Albanese government’s upcoming budget will curb negative gearing and overhaul the 50 percent capital gains tax (CGT) discount. The reforms target the tax advantages that disproportionately benefit high‑income earners, with the Parliamentary Budget Office noting 80 percent of CGT benefits flow...
AICPA Asks IRS for Guidance on Excise Tax at Nonprofits
The American Institute of CPAs (AICPA) has formally asked the IRS and Treasury for guidance on the new excise tax introduced by the One Big Beautiful Bill Act (OBBBA). The tax, up to 21% on executive compensation exceeding $1 million, now covers all employees of...
The Most Common Tax Traps in Retirement — and How to Avoid Them
Retirees are increasingly worried about taxes, with 70% of surveyed Americans fearing higher bills as they shift from wages to portfolio withdrawals. Misunderstanding Social Security taxation can turn a sizable benefit into a hefty liability, as up to 85% of...
HMRC Under Pressure over Pension IHT Guidance Delays
HMRC announced that from 6 April 2027 unused defined‑contribution pension pots will be subject to inheritance tax. The agency’s technical note outlines that personal representatives must calculate IHT using a new online tool and that schemes could be required to withhold up...
Cliff Planning Before Washington's 2028 Income Tax: How to Use 2026 and 2027
Washington will levy a 9.9% income tax on household earnings above $1 million beginning Jan 1 2028, making 2026 and 2027 the last years to recognize income without state liability. The article introduces “cliff planning,” a timing strategy that accelerates taxable events—such as...
Cashing Out, Donating Remainder Suggests Belief in Market Peak
Not to be cynical, and the article doesn't reveal how many people did this, but: surely cashing out and donating the remainder of one's shares to offset taxes signals a belief that one is selling into the top?
Capital Gains Exemption
I know South Korea has been on fire with the memory-related trade, but I wonder how much of an impact the capital gains exemption has had for citizens selling foreign stocks & reinvesting in SoKo stocks. https://t.co/EacvTscwxw
Equipment Gains Not Automatically Farm Income for SDRP
The One Big Beautiful Bill Act (OBBBA) reclassifies equipment gains as farm income, but the change only takes effect for crop years beginning in 2026. Consequently, for the current Supplemental Disaster Relief Program (SDRP) years—2023 and 2024—equipment gains do not count toward the...
Pass‑through Entities Often Beat QSBS for Tax Savings
In Episode 52 of @HowTaxWorks, I discuss why QSBS/1202 isn't some magical panacea, and it would lower taxes for many businesses to remain as pass-through entities. Listen here:
Solo 401(k) Auto‑Enrollment Credit Can Add Up to $1,500 to Small‑Biz Retirement Funds
Solo 401(k) sponsors can now claim a $500 annual tax credit for adding an Eligible Automatic Contribution Arrangement (EACA) to their plans, totaling $1,500 over three years. The credit, created by SECURE 2.0 and effective Jan. 1, 2025, targets one‑person and spouse‑run businesses...
Washington Vs. California: Residency Safe Harbors Compared
Washington and California use vastly different residency safe harbors that can make or break a founder’s tax position when moving between the two states. Washington offers a statutory 30‑day rule that requires no Washington abode, an outside abode for the...
Heirs Face 37% Tax Hit on Large Health Savings Accounts, Planners Warn
Financial planners warn that non‑spouse heirs who inherit large health savings accounts (HSAs) must treat the balance as taxable income, potentially pushing them into the 37% top marginal tax bracket. The issue, highlighted by a $600,000 HSA case, underscores a...
Australian Budget Preserves Negative Gearing for 1 Million Landlords, Limits New Investors
Treasurer Jim Chalmers announced that more than one million existing landlords will retain negative‑gearing tax concessions, while the budget bars new investors from claiming the same benefits on existing stock. The move pairs a grandfathering clause with a pledge to...
I'm a Financial Planner: This Is How the Tax Torpedo Targets Wealthy Retirees (and How You Can Step Out of...
The column warns that retirees with roughly $3 million in assets face a series of hidden taxes dubbed the “tax torpedo.” Using a case study of a couple with two‑thirds of their wealth in tax‑deferred accounts, it shows how required minimum...
Television Academy Endorses Post-Production Tax Credit Bill as Assemblyman Nick Schultz Rallies Support in Burbank: ‘We Should Have Done This...
The Television Academy has officially endorsed Assemblyman Nick Schultz’s AB 2319, a bill that would create a 35%‑50% tax credit for post‑production work done in California, even when the principal shoot occurs elsewhere. The legislation aims to reverse a loss of...
Top-Earning Australians Make Money Very Differently From Typical Workers
The Australian government is set to amend capital gains tax, negative gearing and family‑trust rules in next week’s budget. Analysis shows the nation’s highest earners—those with over AUD 1 million (≈ US $660 k) in total income—derive a large share of earnings from capital gains,...
Advisors Guide Clients to Tax‑Efficient RSU Sale Strategies
Creating An Effective RSU Sale Strategy With Clients: How financial advisors can play a valuable role in helping clients manage their vested RSUs in a way that reduces concentration risk and meets cash flow needs in a tax-efficient manner. (Daniel Zajac) https://t.co/sje8maE7MA...
Maine and Oregon Decouple From QSBS Exemption, Threatening Wealth‑Management Strategies
Maine and Oregon enacted legislation this month that severs their tax codes from the federal Qualified Small Business Stock (QSBS) exemption, forcing investors to pay state capital‑gains tax on startup exits. The move follows a wave of state‑level attempts to...
Already Have Life Insurance? Why an ILIT May Be Worth It
Estate planning now faces state-level estate taxes, especially in New York where the exemption is $7.35 million and a 5% overage triggers tax on the entire estate. Life‑insurance death benefits are generally includable in the decedent’s gross estate under IRC 2042, potentially...
Republican-Led Plan Aims to Preserve 179D Building Energy Deductions, Extend Other Energy Credits
A bipartisan House bill, H.R. 8477 – the American Energy Dominance Act – was introduced on April 23, 2026 to make the Section 179D commercial building energy‑efficiency deduction permanent and to roll back select changes from the 2023 One, Big,...
The Consequences of Failing to File California's Like-Kind Exchange Form
In this episode of Spidell's California Minute, host Katherine Zidane explains the penalties for not filing California Form 3840, which is required for like-kind exchanges involving California property. Failure to file can trigger a Notice of Proposed Assessment that accelerates...
The Hidden Costs of Getting Tax Planning Slightly Wrong
Retirees often underestimate how small income shifts can trigger disproportionate tax consequences. A modest increase can push Social Security benefits, Medicare premiums, and investment income into higher tax brackets, turning an apparent 12% rate into an effective 20% or more....
Stop Flying Blind on Sales Tax: How RJM Tax Exemption Protects Shopify Brands From a Compliance Crisis
RJM Tax Exemption, a specialist compliance firm, helps Shopify brands navigate the four sales‑tax nexus triggers—economic, physical, affiliate and click‑through—that can create hidden liabilities once a seller exceeds $100 K in interstate sales or uses Amazon FBA warehouses. The firm offers...
Washington's Capital Gains Tax (Now Up to 9.9%): Residency Planning Before You Sell
Washington’s new capital‑gains excise tax charges 7% on the first $1 million of gain and 9.9% on any amount above that, creating a potential seven‑figure liability for founders selling stock or other intangibles. The tax applies only to sellers domiciled in...
QSBS Attestation Letter: What It Needs to Say
Qualified Small Business Stock (QSBS) benefits hinge on solid documentation, and the article breaks down exactly what a QSBS attestation letter must contain to survive an IRS audit. It warns that generic, one‑page letters are ineffective and outlines each statutory...
Best LTC Insurance Strategies Vary by Business Structure
We explore a range of options, from the most favorable (purchasing on behalf of employees, or for employee-owners of a C corporation or who are less-than-2% shareholders of an S corporation), to the slightly less favorable (purchasing for owner-employees of...
What Happens to an RESP when a Family Moves to the U.S.?
A Canadian family moved from Vancouver to California, leaving their child Rhodes as the RESP beneficiary. Because Rhodes is now a U.S. resident, any new contributions to the RESP no longer qualify for the Canada Education Savings Grant (CESG). Existing...
An Income Tax Play for Professional Athletes
The article examines how state "jock taxes" hit professional athletes when they change teams via free agency or trades. It outlines the historical rise of these taxes, from California’s 1991 lawsuit to Washington’s 9.9% millionaire levy on a single duty...
India’s New Safe Harbour Rules Create Fresh Tax Dilemma for Multinationals, GCCs
India’s 2026 Union Budget introduced a 15.5% safe harbour margin for IT and ITeS services, undercutting the 16.5%‑18.5% margins typically set in advance pricing agreements (APAs). Multinationals with existing APAs now face a choice: stay locked into higher margins or...
Married Couples Can Earn $131k in Tax‑free Dividends
One of the best kept secrets of the tax code? Under the right circumstances- A married couple in the US can earn up to $131,100 in dividends every year and pay zero in taxes. Here's how: (thread 👇)
IRS Establishes Program for Rulings on Significant Issues
The IRS issued Rev. Proc. 2026‑21 on May 7, 2026, creating a program that lets taxpayers request rulings on specific, significant legal issues tied to transactions under sections 332, 351, 355, 368, or 1036. The initiative reinstates the practice of issuing letter rulings on parts of integrated transactions, aiming...
Pensions IHT Shake-Up Is ‘Not a Tweak, but a Reset’
Financial advisers have just 11 months to prepare for a sweeping overhaul of how inheritance tax (IHT) applies to pensions, set to take effect in April 2027. Industry leaders at MMI Leeds 2026 highlighted that HMRC will soon release detailed...
Treat HSA as Investment, Not Everyday Checking Account
One of the biggest mistakes people make... Using their HSA like a checking account. Save your medical receipts. Let your HSA compound and grow. Reimburse yourself later.
Oppose Taxing Startup Share Gains as Ordinary Income
Thanks @PaulBassat @sallyannw @bigyahu for continuing to speak up about the devastating impact of potentially taxing startup shares growth like ordinary income. Policy outcomes should always take priority over treating all assets equivalently. https://t.co/ma4v6wdWhS
Shared IRS‑SSA Leadership Could Stop Improper EITC Payouts
🤯🤯🤯This @TIGTA report made my head explode. Perhaps, with @IRSnews and @SocialSecurity sharing a the same leader, we can figure out an efficient way to avoid EITC payments to ineligible (nonwork) SSNs. https://t.co/Dnfj1Y5f40 #IRS #tax https://t.co/EgtxWYygbm
Tax‑Smart Portfolio Rebalancing: Follow These Rules
The way you rebalance your portfolio will determine how much you pay in taxes. Doing it incorrectly can result in unnecessary expenses, but there are a few rebalancing rules that can maximize your savings. https://t.co/THJGk6LSHp
Limit Negative Gearing to Boost Young Homeownership
I want an improvement in the ability of young people to build wealth, and own a home if they wish. We have such an easy solution that doesn't require destruction of whole sectors: Just limit NG to like-for-like income (as overseas) Rental losses...