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.
Passive Real Estate Products Displace Traditional Landlording, $14B Shift Evident
Reed Haimson, founder of Passive Realty Group, says investors have moved $14 billion into passive real‑estate vehicles, signaling a decisive shift away from hands‑on landlording. The trend reflects growing demand for time‑saving, tax‑efficient structures that promise capital preservation over cash‑flow focus.
RSM Highlights Hidden Impact of State and Local Taxes on REIT Performance
Saham Muliyil, senior manager of state and local real estate tax at RSM US LLP, warned that state and local taxes (SALT) can materially affect REIT performance across development, operation, and disposition phases. Many investors mistakenly believe REITs are insulated...
Rodney Stuart Ferguson's "The Three Buckets" Guide Promises Tax‑Efficient Wealth Growth for Advisors
Financial veteran Rodney Stuart Ferguson launched his new book, *The Three Buckets*, offering advisors a three‑bucket framework for tax‑efficient wealth growth. The guide, released April 30, 2026, targets advisors seeking a clear roadmap to organize client assets and improve tax...
Federal Court Shuts Down BVI Tax Escape for Canadian Holding Company
The Federal Court of Appeal overturned a Tax Court decision, holding that DAC Investment Holdings Inc. remained a Canadian‑resident corporation after its continuance to the British Virgin Islands. The court applied the general anti‑avoidance rule (GAAR) to a C$2.36 million (≈US$1.75 million)...
Why Tax-Efficient Retirement Income Is About Structure
The article argues that tax‑efficient retirement income hinges on the overall structure—risk allocation, account placement, and withdrawal sequencing—rather than isolated tax tricks. It stresses that a proper asset‑allocation mix is the foundation, then recommends holding growth‑oriented funds in taxable accounts...
Proper Beneficiary Setup Saves Crypto Estate From Tax Bankruptcy
A client's father died in 2025 with over $100 million in Bitcoin bought in 2011. No keys, no access, but it was in the will. The estate owed 40% tax on $76 million above the gift threshold. They could not...
Big‑Tech Employees Use Simple Playbook to Earn Extra Income
To anybody at Apple, Amazon, Meta, Google, Microsoft/LinkedIn, Broadcom, Salesforce, and a handful of other big tech companies Here's the general playbook that people I work with are running (w/o going into Airbnbs/short-term rentals or starting a business):
What Happens When a Taxpayer Dies with Passive Losses?
When a taxpayer dies holding a passive activity with suspended passive activity losses (PALs), the losses are not fully deductible. Under IRC §469(g)(2), only the portion of PALs that exceeds the step‑up in basis allowed by §1014 can be claimed...
Mega Backdoor Roth: Boost Roth Savings via After‑Tax 401k
Does your 401k have an "after-tax" account? If so, you can use the Mega Backdoor Roth strategy to invest $40,000+ to a Roth account in addition to your regular contributions. It's an amazing strategy to minimize future taxes on growth for high...
Good Financial Reads: The Business Owner’s Financial Operating System
The article guides small business owners through three critical financial pillars: selecting the optimal retirement plan—SEP IRA, Solo 401(k), or SIMPLE IRA—based on income, employee count, and growth goals; avoiding costly bookkeeping errors, especially the failure to reconcile bank accounts;...
Use an LLC for Crypto to Protect Privacy and Taxes
Personal name XRP sales get you a standard deduction and full exposure to creditors and scrutiny. The LLC gives you anonymity, creditor protection, and actual tax strategy. Borrow against the position, generate income through DWP products, or set a limit...
Ask the Tax Editor, May 1: 10-Year Rule for Inherited IRAs
The 2019 SECURE Act eliminated the lifetime stretch for most non‑spousal inherited IRAs, imposing a 10‑year distribution window. Beneficiaries must fully withdraw the account by the end of the tenth year, with annual required minimum distributions (RMDs) only if the...
IRS Unveils Temporary Rules to Refund Diesel and Kerosene Excise Taxes
The Treasury Department and IRS rolled out new regulations, effective May 1 2026, that let businesses reclaim excise taxes on diesel or kerosene that are later dyed and removed for non‑taxable uses. The temporary rules, which expire May 1 2029, create a formal refund...
The Nevada Advantage: Strategic Trust and Tax Planning for the Modern Family Business
The article outlines why Nevada has become a premier trust jurisdiction for high‑net‑worth family businesses. It highlights Nevada’s tax neutrality—no state income, capital gains, estate or GST taxes—combined with flexible statutes such as decanting and directed trusts. Dynasty trusts can...
IRS Provides Way to Extend ERC Disallowance Deadline
The IRS has introduced a new mechanism for taxpayers whose Employee Retention Credit (ERC) claims were disallowed to extend the two‑year deadline for filing a refund lawsuit. Eligible taxpayers can submit Form 907, “Agreement to Extend the Time to Bring...
Turn Your IRA Into a Tax‑Efficient Legacy Vehicle
Your IRA was built for retirement… but is it optimized for wealth transfer? At ARH Global Advisors LLC, we design sophisticated strategies for high-net-worth individuals using premier solutions, including John Hancock life insurance products, to transform taxable assets into tax-efficient legacy...
Slash $1.4 M Tax Bill Without Extra Work
I saw a post from someone sharing they made $2.5m in personal income last year in California. Got crushed by taxes ($1.4m between federal, state, and self-employment taxes) so she was starting to look at what she can do. Doesn’t...
How Boast Helped Companies Secure $900 Million in R&D Tax Credits Since 2018
Boast’s 2026 R&D Benchmark Report reveals the firm helped North American companies secure close to $900 million USD in research‑and‑development tax credits from 2018 to 2024, with Canada accounting for 45 % of the total. Annual claim values have risen 245 % since...
Gift $19K of XRP Tax‑Free Each Year
You can gift up to $19,000 per person per year in XRP without filing a 709 tax form. No tax implications for you or the recipient. Keep a clean transaction record from the purchase wallet to the receiving wallet. Multiple...
Is 831(b) Ruling One of the US Captive Industry’s Biggest Wins?
The U.S. District Court in Texas partially struck down IRS regulations governing 831(b) captive insurance elections, marking a notable judicial pushback. While the decision may embolden more businesses to explore 831(b) structures, the IRS retains broad audit authority and has...
Billions in Battery Tax Credits Hinge on FEOC Compliance
The Treasury’s new N‑26‑15 guidance turns Foreign Entity of Concern (FEOC) compliance into a project‑level calculation that determines eligibility for the Section 48E investment tax credit and the Section 45X advanced manufacturing credit. Developers must now compute a material assistance cost ratio...
ZigZag Partners Trade Duty Refund for EU Duty Drawback Service
ZigZag has partnered with Trade Duty Refund to launch an integrated EU duty drawback service for UK retailers selling into the EU. The solution blends ZigZag’s returns platform with Trade Duty Refund’s digital claims engine, automating evidence capture and customs...
Mamdani Tax Break Proposal: Could NYC Businesses Leave as Economy Turns Fragile?
New York City Mayor Zohran Mamdani proposes scaling back the pass‑through entity tax (PTET) credit to narrow a growing budget gap. The credit currently offsets New York’s high tax burden for thousands of S‑corporations and LLCs, especially owners earning $300,000‑$500,000....
Motley Fool Expert Details Five-Step Backdoor Roth IRA Strategy for High Earners
Robert Brokamp, personal‑finance analyst at The Motley Fool, walked listeners through a five‑step method to fund a Roth IRA via the backdoor on the April 25, 2026 episode of Motley Fool Money. The guide targets taxpayers whose incomes exceed the Roth contribution...
Rodney Stuart Ferguson Launches "The Three Buckets" Guide for Tax‑efficient Wealth Growth
Rodney Stuart Ferguson, a four‑decade financial veteran, released his new book "The Three Buckets" on April 30, 2026. The guide proposes a three‑bucket model—Taxable, Tax‑Deferred, and Tax‑Free—to simplify tax‑efficient wealth planning for advisors and their clients. The publication aims to...
Bipartisan Disaster Tax Relief Bill Passes House, Backed by Insurers
The U.S. House of Representatives approved H.R. 5366, the Dough LaMalfa Federal Disaster Tax Relief Certainty Act, extending personal casualty loss deductions through 2026 and exempting wildfire compensation from federal income tax through 2030. Insurers, led by the American Property...
How GPs Can Use Carried Interest Derivatives for Estate Planning
Venture‑capital general partners are turning to carried‑interest derivatives as a tool for estate planning. By gifting these synthetic contracts, GPs can lock in future profit participation while transferring value to heirs at a reduced tax cost. The strategy leverages the...
Five Tax-Free Retirement Withdrawal Strategies Advisors Must Know
Tax-free retirement distributions sound straightforward until you get into the actual rules. Join Tim Steffen for this Kitces webinar, where Tim will cover five strategies advisors use to get money out of retirement accounts without a tax hit: rollovers, after-tax basis recovery, NUA, Roth withdrawals,...
IRS Increases Foreign Earned Income Tax Breaks
The IRS issued Notice 2026‑25, raising the foreign earned income exclusion to $132,900 for 2026, up from $130,000. Taxpayers must meet the bona‑fide residence or 330‑day physical presence test and file Form 2555 to claim the benefit. The foreign housing deduction base...
Cancel Unused EINs by Saying the Business Never Opened
#TaxTwitter In July 2025 I wrote to the IRS at the Cincinnati address on the SS-4 letter to cancel 2 unused EINs. I specifically said "cancel" and that the numbers would not be used for any purpose. I recommend using...
Mexico Tax Update: Nearshoring, Audits, and Treaty Twists
In this episode of Cross‑Border Tax Talks, PwC International Tax Partner Adriana Rodriguez provides a deep dive into Mexico’s corporate tax landscape, covering the 30% federal corporate rate, withholding taxes, the new 2024 MLI rules, inflation‑adjusted interest deductions, CFC (REFIPRE)...
Safehold Discusses Tax Complexity in REIT Joint Ventures and Opportunity Zones
Safehold’s senior tax executive Adam Cohen told Nareit’s REITwise conference that operating partnership (OP) unit transactions have shifted from pure tax‑deferral tools to acquisition‑driven structures, creating new negotiation friction. Sellers increasingly seek to defer taxes, but mismatched depreciation schedules or...
Last-Minute Pension Investing Could Cost Brits £24,000 – What’s a Better Way to Save?
Penfold’s analysis shows that roughly one‑fifth of UK pension contributions are rushed into in March, the final month of the tax year, with single‑payment amounts 4.4 times higher than the monthly average. This last‑minute behavior can erode long‑term returns because it...
ERC Refund Extensions, Capital Gains Indexing, Donor Disclosure Updates
Tax News & Views Zippy ERC Refund Extension Roundup Taxpayer Advocate explains new ERC appeal extensions. Capital gain indexing back in play? Donor Disclosure in the courts. Zippers. Link in replies.
House Passes Panetta’s Bipartisan ‘Supporting Early-Childhood Educators’ Deductions Act’
The bipartisan Supporting Early‑Childhood Educators’ Deductions (SEED) Act, championed by Rep. Jimmy Panetta, cleared the House unanimously and now moves to the Senate. The bill expands the existing $300 above‑the‑line educator expense deduction to include pre‑K and early‑childhood teachers, allowing...
FIFA Pushes Blanket US Tax Exemption for World Cup Teams
I've been following FIFA's efforts to secure tax-exempt status for member associations participating in the World Cup this summer. This is the first of hearing of some sort of blanket exemption for all participating teams. Interested to see whether this...
Kustoff Bill Would Boost Section 199A Deduction to 23%, Expand QBI Eligibility
Rep. David Kustoff introduced the Small Business Tax Cut Act, proposing to raise the Section 199A qualified business income deduction from 20% to 23% and broaden eligibility. The bill rewrites wage and property limits, allowing service‑trade businesses to retain the...
Using Exchange Funds To Diversify Concentrated Securities (And When It’s Better To Sell Instead)
Advisors facing clients with highly concentrated, appreciated stock holdings can use exchange funds to swap those positions for a diversified basket while deferring capital‑gain taxes. The fund operates as a partnership, requiring a seven‑year lock‑up and a minimum 20% allocation...
IRS Sets Larger 2026 Tax Allowances for Expensive Housing Abroad
The IRS released Notice 2026-25, raising foreign housing tax allowances for high‑cost overseas locations in 2026. The maximum housing exclusion climbs to $39,870, with city‑specific caps that reflect local cost differentials. London now qualifies for a $68,600 allowance, while Hong Kong,...
IRS Clarifies Tax-Free Educational Assistance Cap to Adjust With Inflation Beginning in 2027
The IRS issued Fact Sheet 2026‑10 clarifying that the $5,250 tax‑free educational assistance limit stays flat for 2026 but will be indexed to the cost‑of‑living adjustment (COLA) starting in 2027. The guidance also makes employer‑paid qualified education‑loan payments a permanent benefit...
Ottawa Cracking Down on 21-Year Deemed Disposition Rule for Trusts: Lavery Lawyer
Canada’s federal government is tightening the 21‑year deemed disposition rule for trusts that hold private‑company shares. New reporting requirements force most express trusts to file T3 returns and disclose key parties, ending the secrecy that enabled last‑minute restructuring. The 2025...
HSAs: Tax‑Free Growth, Lifetime Benefits, Retirement Flexibility
Why we love Health Savings Accounts (HSAs) in 2026: 1️⃣ Tax-deductible contributions (lower your taxable income) 2️⃣ Tax-free investment growth 3️⃣ Tax-free withdrawals for medical bills 4️⃣ Your balance never expires and stays with you if you change jobs. 5️⃣ At age...
Add a Solo 401(k) to Boost Side‑Hustle Savings
To anybody with a full-time W-2 and a side hustle in 2026: You can likely open a solo 401(k) for your side hustle and use this to get up to $72K into this plan on top of what you put into...
Mamdani Pushes to Shrink NY Hedge-Fund, Private-Equity Tax Break
New York City Mayor Zohran Mamdani is delaying the city’s $127 billion budget while urging Governor Kathy Hochul to trim the pass‑through entity tax (PTET) credit that benefits hedge funds and private‑equity firms. Mamdani and City Council Speaker Julie Menin propose cutting...
Set PTETs at 110% to Boost Revenue
For what it's worth, PTETs should be set at like 110%. Still a net benefit for taxpayers, would actually pay for the extra processing that PTETs allow and raise revenue.
Inheritance Tax on Pensions Set for 2027 Spurs Shift to Annuities and Estate Planning
The UK government will extend inheritance tax to unused pension funds and certain death benefits starting April 2027, a change announced by Chancellor Rachel Reeves in the 2024 autumn budget. Savers are already moving away from pure retirement income products...
A Texas Two-Step on Franchise Tax: Lessons From NuStar and American Airlines
The SALT Shaker Podcast breaks down two pivotal Texas franchise‑tax rulings. In NuStar Energy LP v. Hancock, the Texas Supreme Court held that receipts from tangible personal property are sourced to Texas based on the delivery point, rejecting an ultimate‑use...
How to Turn Tax Law Changes Into Advisory Opportunities
The “One, Big Beautiful Bill” enacted on July 4 2025 introduced sweeping tax changes that have already generated client confusion and a flood of questions. Rather than reacting during tax season, the article urges advisors to use the interim period for proactive,...
Retiring Early? Here's How to Turn Low-Income Years Into a Roth Conversion Goldmine.
Early retirees can leverage low‑income years to perform Roth conversions, turning taxable traditional IRA or 401(k) balances into tax‑free growth. Converting while in a reduced tax bracket avoids higher marginal rates and eliminates future required minimum distributions. The strategy also...
Hawaii Taxes: What Retirees Should Know Now
Hawaii’s tax system combines high marginal income rates—up to nearly 11%—with several retiree-friendly offsets. Social Security benefits are fully exempt, many pensions receive favorable treatment, and the state’s property taxes are modest, typically $3,000‑$4,000 on a $1 million home after a...