Today's Tax Strategy Pulse
Grantor Trust Distributions Shift Tax Burden to Beneficiaries
A 67‑year‑old grantor runs a revocable trust that generates roughly $300,000 of income each year. By distributing that income annually, the trust can claim a deduction on Form 1041, moving the tax liability to the children’s personal returns, while capital gains may still be taxed at the trust level.
Giving Gamechanger: Why Now's the Time to Use a Donor-Advised Fund
The One Big Beautiful Bill Act, enacted last summer, introduced a 0.5% of AGI floor for charitable deductions and lowered the top‑bracket deduction cap to $0.35 per dollar. Corporations now need contributions exceeding 1% of taxable income, with a 10% overall limit. These tighter rules have spurred donors to reassess timing, especially by bunching gifts and using donor‑advised funds (DAFs) to lock in deductions while retaining grant flexibility. Advisors stress that proactive tax‑efficient strategies are essential to sustain philanthropic impact in 2026 and beyond.
Trump Accounts: The New Payroll Risk Employers Aren’t Talking About
The One Big Beautiful Bill Act creates a new IRA for minors, allowing employers to contribute up to $2,500 per employee tax‑free starting July 4, 2026. The IRS has issued proposed regulations covering account opening and a $1,000 federal pilot contribution, but...
Capital Gains Discounts Were Meant to Usher in an Australia of ‘Shareholders’ – Not Property Speculators | Saul Eslake
The Australian government is expected to amend the 50 percent capital gains tax (CGT) discount in the May 12 budget, a policy originally intended to foster a shareholder economy but that has instead boosted property speculation. Since its 1999 introduction, the...
Understanding the PPLI Opportunity: The Basics and Beyond
Private Placement Life Insurance (PPLI) is rapidly gaining traction among affluent families seeking tax‑efficient wealth growth. Winged Keel Group, a sponsor of Family Enterprise USA, is hosting a free webcast on May 28 at 1:00 PM PDT to demystify PPLI’s structure and...
Kiplinger Recommends Qualified Opportunity Zones to Dodge Capital Gains After Market Slump
Kiplinger columnist Dan advises investors to use Qualified Opportunity Zones to defer capital‑gains taxes after a market correction that saw the S&P 500 fall over 10% and oil spike to $117 per barrel. The strategy could postpone tax on gains...
Sullivan & Worcester Partner Sees TRS Structure as Simpler, More Flexible Alternative for REITs
Sarah Wellings, partner at Sullivan & Worcester, told Nareit’s REITwise conference that taxable REIT subsidiaries (TRSs) provide a simpler, more flexible alternative to using independent contractors for non‑customary services, cutting compliance risk. She explained that routing asset sales through a...
Sell High‑Basis Shares, Gift Low‑Basis for Tax‑Free Inheritance
Bob has a $5M brokerage account which he will pass down to his 2 kids A smart tax move for him is to sell the right lots It's best to sell stocks with high cost basis (= low capital gains tax) to...
IRS Extends Deadline for Appealing ERC Claim Denials
The #IRS announced a new procedure to extend the time to appeal #ERC claim disallowances https://t.co/7wgIqkWo1b https://t.co/Iazwffm4Zp
Vanguard Study Finds 529 Plans Can Save Parents Up to $25,000 vs Taxable Accounts
Vanguard’s latest education‑savings model shows that a typical middle‑income family contributing $3,000 annually for 18 years would accumulate $103,453 in a 529 plan versus $77,790 in a taxable brokerage account – a $25,663 gap driven by tax drag. The study...
Plotkin's Snowball ETF Uses 351 Conversion to Erase Capital Gains
Gabe Plotkin (of GameStop fame) is launching the “Snowball ETF” at some point prob soon and it wil be a 351 conversion, way to get rid of embedded cap gains. Nice piece on it today from @denitsa_tsekova & @isabelletanlee https://t.co/uHcccZpX5g
Unlock R&D Tax Credits Through Engineering Work
Are you leaving R&D value on the table? George Nichkov explains how Taxnova connects engineering work to: • R&D tax credits • Software capitalization • Real financial impact Watch 👇 https://t.co/rBv5AOvECt #SaaS #FinOps #Startups https://t.co/NTWk1QKhDI
Republicans Introduce American Energy Dominance Act, Aim to Remove Renewables ITC, PTC Deadlines
Republican lawmakers introduced the American Energy Dominance Act to undo Trump-era cuts to the renewable Investment Tax Credit (ITC) and Production Tax Credit (PTC) that were shortened under the Inflation Reduction Act. The bill would restore the original construction and...
California Moves to Scrap 0.4% Tax Cap on Retirement Savings
The California Constitution has had a 0.4% limit on taxing intangible property like your retirement savings for almost a century since the Great Depression. This would remove that.
This Week's Tax & Investment Tips You Need
Inside this week’s newsletter: ⏰ A court case could give taxpayers more time to claim refunds 💸 How to pay IRS 📊 ETF workarounds & wash sale rules 🏦 Mega Backdoor Roth strategy 🎓 Tax-free student loan help from employers 💒 Filing under common law https://t.co/OD4Rr2mxtt
Feeling a Tax Bite? Municipal Bonds Could Be More Compelling Than You Think
Municipal bonds are gaining attention as the yield curve steepens, rewarding investors who hold longer‑dated issues with higher nominal yields. Valuations for long‑term munis are historically cheap, offering attractive relative value versus taxable Treasuries. The tax‑exempt nature of municipal income...
Why Heirs Might Decline Inheritance and How
Most people would find it hard to turn down “free” money, whether it’s finding a $20 bill on the sidewalk or getting a match in a company 401(k). However, the decision of whether to keep or disclaim (all or part)...
Trump's 2025 OBBBA Boosts Itemizers to 12%
Thx @PKubeyEA for the gift article. Trumps's 2025 OBBBA increased IRS #tax itemizers from 10% to 12%. "#Taxpayers who qualify for new and enhanced deductions in the tax law may end up with even lower effective rates.""Play around with it...
Yaskawa America Commits $182 Million to New Franklin Robotics Campus
Yaskawa America announced a $182 million investment to construct a new headquarters, 389,000 sq ft of manufacturing space and a 103,000 sq ft laboratory campus in Franklin, Ohio. The project, backed by a new Tax Incremental Financing (TIF) district, is slated to generate roughly 1,000...
Seed Enterprise Investment Scheme (SEIS) –Big Profits From Small Ventures
The Seed Enterprise Investment Scheme (SEIS) offers investors up to £200,000 ($254,000) a year with 50% income‑tax relief and additional capital‑gains and inheritance‑tax benefits. In the 2023‑24 tax year, 2,290 companies raised £242 million ($307 million) through SEIS, a rise of more...
Suze Orman Says Retirement Accounts Outperform Real Estate for Long‑Term Wealth
Financial guru Suze Orman told listeners that employer‑sponsored 401(k)s and Roth IRAs, with a $24,500 contribution limit in 2026 and tax‑free growth, beat real‑estate investing for long‑term wealth. She warned that property ownership brings ongoing costs and liquidity risks, prompting...
Pick Roth if Future Taxes Exceed Today’s Rate
Roth vs Traditional 401k is all about taxes. Say you are in a 32% marginal tax rate and you put $20k in Trad 401k. It doubles to $40k, which is $27.2k after taxes Same example, but contribute $13.6k to Roth (after 32%...
High‑Net‑Worth Investors Deploy Six Roth IRA Tactics to Grow Tax‑Free Wealth
Financial advisers Arron Bennett and Anthony DeLuca detail six Roth IRA strategies the 1% rely on to maximize tax‑free growth, from front‑loading contributions to using self‑directed accounts for alternative assets. Their playbook shows how affluent investors protect wealth across generations...
A Guide to the Backdoor Roth IRA, and Heirs Squandering Inheritances
In this episode, Robert Brogamp walks listeners through the five‑step backdoor Roth IRA process, warning about the pro‑rata rule and how to avoid taxable pitfalls, while also noting alternative Roth options like employer plans and the mega‑backdoor Roth. He then...
COVID‑Suspended Interest Rules Revive 843 Refund Strategy
#TaxTwitter I am getting a little more excited about 843s under the Fleisher theory. This is the idea that interest limiting exceptions were suspended during COVID most notably 45 day rule and no interest till you file. On the...
Most Taxpayers Unaware of Kwong Refund Deadline
#TaxTwitter - Hey what is up with everybody? I tried a survey asking how many Kwong inspired 843s people expected to be involved with and nobody answered. There was one comment. So how aware are people that there...
Duty Drawback Rates for Gold & Silver Jewellery Hiked to Support Exporters
India’s Finance Ministry announced a quarterly hike in duty drawback rates for gold and silver jewellery, raising the gold refund to ₹773.17 per gram (about $9.3) from ₹639.59, and the silver refund to ₹14,990.66 per kilogram (about $180) from ₹9,089.33....
Rescheduling Marijuana Unlocks 280E Deductions for Joint Returns
I don’t want to stir the pot with my buds, but to be blunt, if you weed through the half-baked tax code and search high and low, you’ll find that rescheduling marijuana allows Section 280E business deductions—even if you file...
Your UK Pension Is No Longer Safe From Inheritance Tax: What Should You Do?
From April 2027 the UK will treat unused defined‑contribution pension pots as part of an estate for inheritance tax (IHT). The standard 40% IHT rate applies above the £325,000 (£~413,000) threshold, meaning many middle‑income retirees could face six‑figure tax bills. Advisors...
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Understanding Section 1250: Taxation of Depreciated Real Property
Section 1250 of the Internal Revenue Code forces ordinary‑income tax on gains from the sale of real property when accelerated depreciation exceeds what straight‑line depreciation would have allowed. The rule applies mainly to commercial and residential assets that were depreciated using...
Passthrough Entity Tax: New Laws, New Year, New Considerations
In this episode of Spidell's California Minute, host Katherine Zidane explains recent federal and California legislative changes affecting the June 15th pre‑payment for the pass‑through entity (PTE) tax, including the OBBBA SALT deduction increase to $40,000 and California SB 132’s...
Republican Lawmakers Propose Bill to Preserve Commercial Solar Tax Credits
Four Republican lawmakers introduced the American Energy Dominance Act to extend key clean‑energy tax credits, including the 45Y production tax credit and 48E investment tax credit for commercial and qualifying residential solar projects. The legislation seeks to lengthen credit terms...
IRS Provides New Guidance on Educational Assistance Plans
The IRS released Fact Sheet FS‑2026‑10, outlining tax treatment for educational assistance plans (EAPs) after the One Big Beautiful Bill Act (OBBBA). Employers can offer up to $5,250 in tax‑free educational benefits per employee, now indexed for inflation beginning in 2027. The guidance expands...
Cannabis Tax Relief Is Here, for Some
On April 23 the Justice Department placed FDA‑approved marijuana products and those sold under a state‑issued medical license into Schedule III of the Controlled Substances Act, marking the first federal rescheduling of any cannabis product in more than 50 years. The move removes...
TNPL FY26 Profit Rises on Deferred Tax Restatement
Tamil Nadu Newsprint and Papers Ltd (TNPL) posted a full‑year net profit of ₹248 crore (≈$30 million) for FY26, a sharp rise from ₹4 crore the prior year, driven largely by a ₹219 crore (≈$26 million) deferred tax reversal after adopting India’s new tax regime. Quarterly revenue slipped to...
Pre‑tax Contributions Still Win Despite Future Tax Hikes
While the idea that we currently live in an anomalously low-tax environment that will inevitably reverse course has its appeal, basing one's tax planning decisions around that assumption is still risky. Because even if taxes do creep up nationally, individuals...
Ultra‑Wealthy Use Debt and Timing to Slash Taxes
"Tax deferred is tax reduced" Today, we’re looking at the tax secrets of the ultra-wealthy > Why they borrow instead of sell > How jurisdiction becomes a strategy > The steps at death that can reset a lifetime of gains > Why losses are assets >...
Trump Administration Moves State‑Licensed Medical Marijuana to Schedule III, Offering Tax Breaks
Acting Attorney General Todd Blanche signed an order shifting state‑licensed medical marijuana from Schedule I to Schedule III, unlocking federal tax deductions and easing research rules. The move, hailed by industry groups as the biggest federal cannabis shift in decades, draws sharp...
Court Ruling May Void COVID IRS Penalties, Claim Refund
A court ruling (Kwong) could mean that COVID-era IRS deadlines were paused, some penalties/interest may not have been valid & you may be able to claim a refund. ⏰ Deadline: 07/10/26 ⚠️ Likely appeal—consider filing a protective claim Worth a look: https://t.co/gOvV9Lmucl
Republicans Push Bill to Protect Commercial Solar Tax Credits
Republican lawmakers propose bill to preserve commercial solar tax credits #energysky -- via Solar Power World: https://t.co/ndh1a3g5my
WA Commerce Webinar: Cool Classrooms on a Budget: How Federal Energy Tax Credits Can Help
Washington’s Commerce Department will host a May 11 webinar on using federal energy tax credits to fund ground‑source heat pump HVAC upgrades in schools. Seattle Public Schools and contractor McKinstry will share implementation insights. The state’s Clean Energy Tax Credit Assistance...
Crypto Needs Trusts and Insurance Like Traditional Assets
For traditional assets, family offices have structures in place. For crypto, most people hold it in their personal name because their advisor passed. That is the gap. Wyoming dynasty trusts and asset protection trusts handle succession. Charitable remainder trusts remove...
10 Benefits of Hiring a Tax Accountant for Your Small Business in Phoenix This Year
Small businesses in Phoenix face complex tax obligations that can distract from growth. Hiring a local tax accountant provides expertise in both Arizona and federal regulations, ensuring compliance and minimizing audit risk. Professionals also identify overlooked deductions, streamline financial records,...
‘Use It or Lose It’: Solar Advocates Say IRS Is Still Writing Checks for Tax Credits
Solar advocates warn Pennsylvania businesses, nonprofits and municipalities that the 30% federal production tax credit from the Inflation Reduction Act remains available, but only for projects that start construction by July 4 and become operational by Dec 31 2027. The Keystone Research Center...
Do You Have to Replace Debt in a 1031 Exchange?
Many investors mistakenly think a 1031 exchange requires taking on a new loan equal to the debt paid off on the relinquished property. In reality, the IRS only demands that the replacement property’s total value match or exceed the sold...
Reevaluate Roth vs Traditional 401(k) After Income Shifts
You need to adjust Roth vs Traditional 401k based on life changes. Say you were doing Roth, but your company promoted you fast, or your spouse started a job, or you got a side hustle. You should adjust and analyze Roth vs...
Know When Backdoor Roth Is Worth the Tax Risk
When Is The Backdoor Roth Even Worth Doing? While backdoor Roth conversions can be a valuable strategy, it comes with significant rules and nuances that, if not fully understood, have the potential to cause onerous tax complications for clients in...
Start Thinking Now About Crop Insurance Deferral for the 2026 Harvest
Farmers planting for the 2026 harvest should start planning how a crop‑insurance payout will affect their 2026 tax return. Under IRS Section 451(f), cash‑basis producers can defer part of a 2026 insurance check to 2027, but only if three specific...
Valuation at Heart of Hedge Fund Tax Petition
Hedge Fund Head Petitions IRS on Charitable Contributions. If a "timely contemporaneous written acknowledgment and the qualified appraisal appropriately applied discounts... the central issue is likely to be valuation.” Great @TaxNotes A.J. Collins article https://t.co/s8CLOi8syQ
Tim Cook Turns Apple Into Ireland’s Top Taxpayer
Tim Cook also did wonders for Ireland and the Irish fisc ... Apple is almost certainly now the largest Irish tax payer and its 2014 decision to put on a Green Jersey set out a tax model that a lot of other...
What Retirement Really Looks Like With $4.5 Million When One Spouse Wants to Keep Working
A 61‑year‑old couple with $4.5 million in assets faces a tax‑bracket trap because the wife’s $380,000 consulting income keeps them in the 35‑37% federal bracket through age 65, blocking Roth conversions. The plan recommends funding a four‑year “mini‑retirement” for the husband from...