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.
Why the R&D Tax Credit Could Bring Back Made in the USA
The Section 41 research and development tax credit, recently streamlined by new legislation, is emerging as a catalyst for reshoring U.S. manufacturing. By delivering six‑figure cash refunds, the credit helps firms offset higher domestic labor costs, upgrade equipment, and buffer against tariff volatility. Real‑world cases show defense, electronics, chemical, and glass‑coating companies using the credit to expand capacity, retain talent, and improve quality. Yet many manufacturers remain unaware they qualify, risking a missed opportunity as the window to act narrows.
Inheritance Taxes, Sweden and Family Businesses
Sweden is debating a reduction of its inheritance tax amid widening budget deficits and soaring welfare spending. The current rate of 20% on estates above roughly €1.5 million (about $1.6 million) has drawn criticism from family‑owned firms that argue it hampers succession...
I'm a Financial Planner: Trump Accounts Are a No-Brainer if You're Eligible (How to Apply)
The Treasury is rolling out a new federally backed savings vehicle called a Trump Account, slated to debut this summer for children born between 2025 and 2028. Each eligible minor receives a $1,000 government seed contribution and can make up‑to‑$5,000...
IRS Plans Settlements in Conservation Easement Cases
The IRS announced a time‑limited settlement program for taxpayers involved in syndicated conservation‑easement transactions that the agency deems abusive. The new website details recent court decisions, highlights inflated valuations, and warns of disallowed deductions, penalties, and back‑dated approvals. Eligible individuals...
Family Offices Partner with Wealth Managers and OCIOs to Boost Tax Efficiency
Family offices are increasingly outsourcing tax‑efficient investment strategies to wealth‑management firms and outsourced chief investment offices (OCIOs). The shift reflects a broader push for customized asset allocation and tax‑wrapper selection as U.S. ETFs surge toward a $2 trillion inflow in 2026.
Direct Indexing Unlocks Massive Tax Loss Harvesting Cheat
Tax loss harvesting is pretty insane I'm up almost 10% for the year simply investing in S&P 500 But because I use a direct indexing strategy instead of buying an ETF, I have 50K in "tax losses" I can use to offset...
Married Couples Can Pull $131k Tax‑free, No Advisor
Married couples in 2026 can... - Withdraw $131k from investments - Pay $0 in federal taxes - Without a financial advisor Here's exactly how:
GLD Tax Treatment: Wash Sales, §475 MTM, and GLD Options (Section 1256 Vs. Section 1234)
The SPDR Gold Trust (GLD) is a grantor‑trust ETF whose tax treatment hinges on its legal structure. For most investors, GLD is viewed as property, so wash‑sale rules under §1091 generally do not apply. Traders who elect §475 mark‑to‑market can...
Secure Full ITC Value by July 4 for 2030 Success
The Safe Harbor Playbook: Lock in Full ITC Value by July 4th and Win Through 2030 #energysky -- via Solar Power World: https://t.co/dNPpEw4bQC
Musk Probably Avoids 40% Estate Tax, Advisors Say
Musk is actually highly unlikely to pay the 40% estate tax, if wealth advisers and accountants do their job
Natixis Launches Tax-Managed Long-Short Strategy for RIAs
Natixis Investment Managers rolled out the Gateway Long/Short Ex, a tax‑managed long‑short equity strategy designed for registered investment advisors. The product aims to let clients harvest losses quickly to offset large capital‑gain events, signaling a broader shift toward tax‑aware portfolio...
New Section 68 Sparks Debate Over Trusts and Estates
The fate of a trust or estate under new Section 68 was the subject of great debate after a first-rate update—where I did my best to articulate, captivate, communicate, contemplate, deliberate, elevate, illuminate, and navigate what’s at stake. @CLATaxation DC...
Instructions for S Corporation Election Timing- File Form 2553 Correctly
A timely Form 2553 election is essential for businesses seeking S corporation status and the associated pass‑through tax benefits. The IRS requires filing within 2 months and 15 days of the intended effective date, with proper signatures and shareholder consent;...
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Should You Use a Mega Backdoor Roth Conversion for Your Tens of Thousands in Savings?
A mega backdoor Roth lets high‑income earners funnel after‑tax 401(k) contributions into a Roth account, unlocking $30,000‑$35,000 of tax‑free growth each year—far beyond the $7,500 Roth IRA cap. The tactic hinges on a 401(k) plan that permits after‑tax contributions and...
Brazil Tax Reform Regulations: What You Need to Know About April 30, 2026
On April 30, 2026 Brazil issued three comprehensive regulations—Decree 12,955/2026 (CBS), Resolution CGIBS 6/2026 (IBS), and Joint Ordinance MF/CGIBS 7/2026—collectively codifying over 1,200 articles that replace the legacy PIS/COFINS, ICMS and ISS taxes. The new rules introduce a "tax on...
Skadden Explores Cross-Border Tax Complexity for REITs
Skadden tax partner Sarah Beth Rizzo discussed the growing complexity of cross‑border REIT taxation at Nareit’s REITwise 2026 conference. She explained that U.S. REIT qualification rules, built for domestic assets, must be re‑engineered for global portfolios, often requiring private letter...
NPR Went Looking for Polymarket's Panama Headquarters. It's Elusive
Polymarket, a $15 billion‑valued prediction‑market platform, lists its corporate headquarters on the 21st floor of the Oceania Business Plaza in Panama City, an address it shares with more than a dozen other crypto firms. NPR’s investigation found the listed office is...
The R&D Tax Credit Window Is Closing: What CPAs Must Do Before July 6—And What Comes Next
CPAs have until July 6 to amend 2022‑2024 returns under the restored Section 174 rules, enabling both the R&D tax credit and immediate expensing of qualifying costs. The change can generate cash refunds for firms with average gross receipts up to $31 million...
Senators Murray and Wyden Unveil $675 Billion Trust Tax Bill Targeting Billionaire Loopholes
Senators Patty Murray and Ron Wyden introduced the Fair Trusts for Fiscal Responsibility Act, a bill that would levy a graduated tax on trusts holding $50 million or more and could generate $675 billion in revenue over a decade. The legislation threatens...
Two Fast-Moving Transfer Pricing Shifts in Canada and India that Can Reshape Pricing Policies
Canada is tightening transfer‑pricing audits by requiring a “delineation‑first” approach that aligns contracts, actual conduct, and value creation, rendering pure benchmark studies insufficient. India’s 2026‑27 budget introduces a 15% cost‑plus safe harbor for routine data‑center services, offering pricing certainty but...
Burlington in the Court of Appeal: New Guidance on Purpose Tests and Access to Treaty Benefits
The UK Court of Appeal in Burlington Loan Management DAC v HMRC clarified that merely obtaining a tax‑treaty benefit does not constitute treaty abuse. The judgment distinguishes between a taxpayer’s motive and the purpose of a transaction, holding that anti‑abuse...
Write Off Up to $100K When Small Startup Fails
A weird tax loophole with early stage startup investing that almost no one knows about: If you invest in a small startup that has raised less than 1M in funding And the business fails You can write off up to 50K (single) or...
Use a 351 Exchange to Tax‑Defer NVDA Holdings
Your client has $2M in NVDA they won't sell. "The taxes will kill me." Most advisors stop there. The 351 Exchange breaks the trap. Tax-deferred. ETF-based. Liquid day one. https://t.co/0ev7Bt8ru8
Why some CFOs Stay Far Away From the R&D Credit
The article argues that many CFOs deliberately forgo the U.S. research and development (R&D) tax credit because of high consulting fees, onerous documentation, and lingering audit fears. Structural factors—such as the credit’s design favoring large firms and frequent legislative tweaks—make...
How the 2008 Farm Bill Helps Joint Filers Qualify for SDRP
The USDA’s Supplemental Disaster Recovery Program (SDRP) requires at least 75% of a household’s gross income to come from farming. Married couples filing jointly often fall short when one spouse earns significant off‑farm income. A provision in the 2008 Farm...
Give More But Pay Less: An Essential Guide to Tax-Smart Charitable Giving in 2026
The 2026 tax year introduces the One Big Beautiful Bill Act (OBBBA), which limits deductible charitable contributions to amounts exceeding 0.5 % of adjusted gross income and caps overall itemized deductions at 35 % for taxpayers in the top 37 % bracket. Cash...
How Landmark Ruling in Orsted Tax Dispute Will Affect Future UK Offshore Wind Projects
The UK Supreme Court ruled that pre‑construction surveys and studies for offshore wind farms do not qualify for capital allowances under the Capital Allowances Act 2001. The decision, arising from Ørsted’s dispute with HMRC, narrows the definition of expenditure “on”...
Tax Benefits Of In-Plan Conversions Of After-Tax 401(K) Contributions, #304
In this episode Ryan Morrissey explains in‑plan Roth conversions, where pre‑tax 401(k) dollars are moved into a Roth 401(k) within the same retirement plan. He outlines the pros and cons, such as tax‑free growth versus the tax hit on gains...
Trump Executive Order Launches TrumpIRA.gov and $1,000 Saver’s Match for Workers
President Donald Trump signed an executive order on April 30 that creates TrumpIRA.gov, a federal online marketplace for low‑cost IRAs, and adds a $1,000 Saver’s Match credit for low‑income workers. The move aims to reach the 41‑56 million Americans lacking employer‑provided retirement...
QSBS Stacking: Leveraging Gifts and Trusts for Additional Section 1202 Exclusions
Section 1202 lets each taxpayer exclude up to $10 million (or $15 million for post‑July 4 2025 issuances) of QSBS gains. Because the exclusion is per‑taxpayer per‑issuer, shareholders can “stack” exclusions by gifting shares to other individuals or placing them in separate trusts. Outright...
Free Guide: Latest Tax Breaks From ERC to 1031
New Tax Breaks is out (free, no paywall) 📬 From ERC relief to nonprofit scrutiny to a deep dive on 1031 exchanges, here’s what you need to know 🧵👇
Can You Prove Your QSBS Will Hold Up?
Founders often assume their Qualified Small Business Stock (QSBS) automatically qualifies for the §1202 tax exclusion, but the benefit is fact‑intensive and subject to IRS scrutiny. To preserve eligibility, shareholders must retain a stock purchase agreement, certificate, and evidence that...
Ohio’s Proposed R&D Credit Expansion Could Unlock State Income Tax Savings
Ohio’s House Bill 756, introduced in March 2026, proposes extending the state’s nonrefundable research and development (R&D) tax credit from the Commercial Activity Tax (CAT) to the Ohio state income tax. The change would let firms with little or no...
Bipartisan Bill Would Use Tax Credits to Build US Plant-Based Materials Sector
Two bipartisan congresswomen introduced the Biobased Materials Investment and Production Act, offering a 30% investment tax credit for new or retrofitted biomanufacturing facilities and a production credit of $0.10 per pound of renewable material, capped at $10 million annually. The legislation...
Tax-Managed Long-Short Strategies Gain Traction. Are They Worth the Risk?
Tax‑managed long‑short equity strategies are gaining traction as advisors look for ways to harvest losses and offset large capital‑gain events. Natixis' Gateway Long/Short Extension Strategy posted an 18.69% total return through 2025, edging out the S&P 500’s 17.82% gain. However, fees...
The Contents of Highlights & Insights on European Taxation, Issue 4, 2026
The EU Court of Justice ruled on 12 March 2026 that Spain’s Article 96 exclusions on client entertainment and recreational expenses fall within the stand‑still clause of Article 176 of the VAT Directive. The judgment confirms a functional interpretation of the clause, allowing later‑acceding...
The Tax Trap That's Costing Your Clients Millions — And the One Tool That Breaks It
The Lead‑Lag Report is hosting a free, one‑hour webinar on May 5, 2026 to teach CFP® professionals about the 351 Exchange—a tax‑deferred strategy that lets clients move concentrated, appreciated stock into a newly created ETF without triggering capital gains. The session, co‑presented...
Advisors Revamp Inherited IRA Plans Under SECURE Act's 10‑Year Rule
Financial advisors are overhauling withdrawal strategies for inherited IRAs after the SECURE Act's 10‑year rule mandates full distribution by the end of the tenth year. The change pushes clients to balance tax exposure, RMD timing, and penalty avoidance.
Citi Research Says AGR Relief Boosts Vodafone Idea’s Debt Funding Prospects
Citi Research reports that the Indian government’s 27% reduction of Vodafone Idea’s Adjusted Gross Revenue dues to Rs 64,046 crore (≈$7.7 bn) improves the carrier’s balance sheet and clears a path for a Rs 250 bn (≈$3 bn) bank debt raise. The relief eases financing for...
The California Wealth Tax Has a Loophole—Here’s How Much Billionaires Could Save
California’s proposed billionaire tax would levy a one‑time 5% charge on the total global assets of residents with net worths above $1.1 billion. The legislation excludes real property held directly or in revocable trusts, but assets owned through limited liability companies...
The £1m Inheritance Tax-Free Allowance Illusion – Why Many Couples Don’t Get It
The UK’s headline‑grabbing £1 million inheritance‑tax‑free allowance actually comprises two £413,000 personal nil‑rate bands and two £222,000 residence nil‑rate bands, totalling about $1.27 million. The residence component only applies when a couple has direct descendants and when the estate stays below the...
We've All Heard the Buzz About Roth Conversions, But Not Everyone Will Like the Reality
Roth conversions, moving money from traditional IRAs or 401(k)s into a Roth IRA, have surged in popularity as investors seek tax‑free retirement income. The strategy requires paying income tax on the converted amount now, making it attractive only when future...
No, Washington Didn't Just Pass a Wealth Tax. Here's What It Did Pass.
Washington did not enact the touted "Capital Assets Ownership Tax" wealth levy. Instead, Governor Jay Inslee signed ESSB 6346, a flat 9.9% tax on household taxable income above $1 million, effective Jan 1 2028 with returns due in 2029. Earlier wealth‑tax bills (SB 5797...
Big Private Company Gain in Washington? Your 2028 Planning Window Is Closing
Washington will levy a 9.9% state income tax on taxable income above $1 million per household starting Jan 1 2028, adding a permanent annual drag for owners of late‑stage private‑company equity. The 9.9% capital‑gains excise tax has been in effect since 2025, so...
Vancouver’s TV Production Rebounds as Tax Credits Rise to 36%
British Columbia lifted its foreign‑production tax rebate to 36%, sparking a revival of TV and film activity in Vancouver. Five U.S. broadcast series are now filming in the city, and Netflix opened a 110,600‑sq‑ft animation studio, signaling a broader industry...
Advanced Insurance Planning Secures Multi-Generational Wealth
It's been encouraging to see a growing number of people taking real steps toward safeguarding their wealth through advanced insurance-based planning. We're focused on building tax-efficient structures that support long-term, multi-generational asset protection. This is, in many ways, is the...
New Donor-Advised Fund Changes Unveiled in WSJ Report
@Saunderswsj and @wsj report on some recent developments with donor-advised funds. I'm sharing this as a gift article, so it should be outside of the paywall. https://t.co/LYtsAV36Vh
Saving for Grandchildren
The article outlines four tax‑advantaged ways to save for a grandchild—529 plans, UGMA custodial accounts, Coverdell ESAs, and the newly introduced Trump accounts. It details each option’s contribution limits, tax benefits, and withdrawal rules, highlighting the Trump account’s $1,000 government...
NY Second‑Home Tax Proposal Falters on Unclear Numbers
"Can a Second Home Tax Work in New York? The Numbers Don’t Add Up Yet." https://t.co/93zcA8JAPT https://t.co/le2hB4g5XI
Wealthy Raid Their Pensions to Avoid UK Inheritance Tax Shake-Up, Advisers Warn
Wealthy UK retirees are accelerating pension withdrawals ahead of a planned inheritance‑tax overhaul, according to financial advisers. The Treasury is expected to tighten rules that currently allow pension funds to pass tax‑free to heirs, prompting a rush to move assets...