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.
Honeywell Names Mike Stepniak CFO and Unveils $1.5‑$2 B Split Into Three Public Companies
Honeywell announced that longtime finance executive Mike Stepniak will replace Greg Lewis as chief financial officer and outlined a plan to break the conglomerate into three stand‑alone public companies—Automation, Aerospace and Advanced Materials—by the second half of 2026. The split follows a $14 billion capital deployment in 2024 and a record $35.3 billion backlog.
Employer‑Paid Education Benefits Up to $5,250 Tax‑Free
Hidden tax perk -> Employers can pay up to $5,250/year toward: 🎓 Tuition 📚 Education expenses 💸 Student loans And it’s tax-free. No income tax. No payroll tax. Worth checking if your employer offers it. https://t.co/0QyFOcW3cM #TaxTips #StudentLoans
Indiana Tax Court: Cell Phones Qualify for Telecom Equipment Exemption
The Indiana Tax Court held that cell phones are covered by the state’s telecommunications equipment exemption from sales and use tax. New Cingular Wireless PCS, which bought phones to give free to customers or replace under insurance, was entitled to...
Addressing Capital Gains
In 2026 investors face capital‑gain pressure from deferred Opportunity Fund gains and strong stock‑market returns, especially from the Magnificent 7. Strategies include exchange funds, QOZ deferrals, charitable remainder trusts, hedging, direct indexing with tax‑loss harvesting, and long/short portfolios. Direct indexing loses...
Why Retirees Are Often Shocked by Tax Bills and How to Reduce Them
Canadian retirees are increasingly surprised by tax bills because most of their income sources lack payroll withholding. CRA data for the 2026 filing season shows 62% of filers receive an average refund of about $2,248 CAD (≈$1,640 USD), while those who owe...
Early Termination of CLAT Doesn’t Constitute Self-Dealing
The IRS issued Private Letter Ruling 202614004, confirming that an early termination of a charitable lead annuity trust (CLAT) via an accelerated, undiscounted lump‑sum payment to a donor‑advised fund (DAF) does not constitute self‑dealing, a taxable expenditure, or a taxable...
When Direct Indexing Is the Wrong Fit for Your Client
Direct indexing, now a $1 trillion mainstream strategy, offers tax‑loss harvesting and customizable equity exposure. Gregory Kanarian of Natixis warns that the approach is unsuitable for certain client profiles, including qualified retirement accounts, low‑tax‑bracket investors, and those with minimal capital gains....
Should Caroline, 62, Defer CPP and OAS Until Age 70, or Even Delay Retirement Entirely?
Caroline, a 62‑year‑old Vancouver homeowner, is weighing whether to defer her Canada Pension Plan and Old Age Security benefits until age 70 and how to structure her retirement cash flow. She holds $115,000 in a TFSA, $250,000 in an RRSP,...
3 OBBBA Tax Provisions Wealthy Families Should Act on Now, From a Financial Pro
The One Big Beautiful Bill Act (OBBBA) enacted in July 2025 makes key 2017 tax cuts permanent and raises several limits for high‑net‑worth families. The federal estate‑tax exemption jumps to $15 million per individual ($30 million for couples), while the Roth conversion window stays open under permanent...
Stratiphy Reopens Tax-Free Route to Crypto ETNs for UK Investors
Stratiphy has introduced a tax‑free pathway for UK investors to access crypto exchange‑traded notes (ETNs) via Innovative Finance ISAs after the FCA lifted a retail ban but HMRC restricted new purchases to niche IFISA wrappers. The platform now offers three...
Fidelity Unveils Ten 2026 Tax‑Saving Tips Amid New Law Changes
Fidelity has published a list of ten tax‑saving strategies for the 2026 filing year, drawing on the permanent 2017 Tax Cuts and Jobs Act reductions and new provisions in the SECURE 2.0 Act. The guidance aims to help taxpayers, especially...
Deferred Income Can Still Be Taxed by Original State
Like many rules, there's an exception: When a person working in one state defers some of their income, then moves to a different state (where they ultimately receive the income), that income can in certain cases be taxed by the first state...
Deloitte Principal Sees New IRS Flexibility Opening Strategic Opportunities for REITs
Deloitte tax principal Mark Van Deusen told Nareit’s REITwise conference that the IRS’s long‑standing refusal to issue rulings for rentals under 30 days creates uncertainty for REITs. He said new IRS guidance permitting revocation of real‑property trade‑or‑business elections made between...
Court Rules Micro-Captives Not Listed Transactions
A Texas federal judge struck down the IRS’s designation of micro‑captive insurance as a “listed transaction,” eliminating the presumption of tax shelter abuse and the associated $200,000 penalties. The court retained the “transaction of interest” label, which still requires limited...
Opinion: Why Blue State Governors Should Sign Up for New Federal Scholarship Tax Credit
The federal government will launch a $1,700 Scholarship Tax Credit on Jan. 1, 2027, allowing individuals to claim a credit for donations to Scholarship Granting Organizations (SGOs). Governors must opt their states in, and Democratic leaders like Colorado’s Jared Polis have already done...
Tax Planning and The Political Pendulum
Democratic senators have filed a wave of tax bills aimed at higher‑income earners and closely held businesses, signaling a "tax‑the‑wealthy" agenda ahead of the 2026 midterms and a potential 2028 Democratic trifecta. Proposals include raising the corporate rate to 28%,...
Top Certified Tax Coaches Launch #1 Amazon Bestseller “DeTaxify Your Life”
The American Institute of Certified Tax Planners (AICTP) and Think Outside the Tax Box unveiled “DeTaxify Your Life,” a bestseller authored by 17 Certified Tax Coaches. The book hit #1 on Amazon in Taxation, Bookkeeping and Small Business Taxes on...
Investors Pay Lower Taxes Than Wage Earners
The tax code loves investors. If you work a W-2 job, the max federal tax rate you can pay is 37%. But qualified dividends or long term capital gains are taxed at up to 23.8%. Real estate investors also enjoy tax arbitrage...
Choosing Entity Structure for QSBS Benefits
One of my favorite things is when a client's accountant asks me to put together a model to compare being a partnership/SCorp v C Corp to see if they should reorganize to go after QSBS. What would you say...
Three Deferral Likely Applies Starting in 2026
The IRS has introduced a Section 1062 four‑installment, three‑year deferral for gains on qualifying farmland sales, but it only applies to transactions occurring after July 4, 2025 and to taxable years that begin after that date. Consequently, taxpayers filing a calendar year 2025...
Expert Advises UHNW Clients on Advanced Tax Avoidance
I'm speaking at Spear’s 500 Live on 6 May - "bringing together the most senior and influential figures in private wealth, luxury and law" for "ultra-high-net-worth clients". Naturally I'll be talking about how they can avoid tax more successfully. https://t.co/sJTXik9aml https://t.co/Ha7mg0Sm2m
Cost Segregation & 179D Updates for Real Estate
In this episode of the Cherry Becker Tax Beat, hosts Michael Ronski and Sarah McGregor discuss two powerful tax tools for real‑estate owners: cost segregation studies and the Section 179D energy‑efficient commercial building deduction. Experts Marty Karaman, Daniel Hurtado, and Andre...
Second Homes Tax Loophole May Be Closed
Labour is reviewing rules that let second‑home owners reclassify properties as holiday lets to escape council tax, shifting them into the business rates system. Under current regulations, owners qualify for small‑business rates relief by renting the home at least 70...
Experts Warn Treasury’s New Homeowner Tax Guidance Misses Many
The U.S. Treasury released new tax guidance for homeowners, but leading tax experts say the advice fails to address the diverse financial situations of many owners. The criticism highlights potential pitfalls for wealth managers advising clients on mortgage interest deductions...
Track Home Improvements to Maximize Tax-Free Gain
Weird and important tax things to know about selling your house: - Keep a record of any capital improvements you make to your house. This increases your basis and reduces taxes when you do sell your house - If you make money...
Fidelity Rolls Out Four Fintech Tools to Help Millennials Buy First Homes
Fidelity unveiled a four‑point playbook that uses fintech‑driven gifting, loans, and estate‑planning tools to help millennial first‑time buyers overcome soaring home prices. The guide arrives as the share of first‑time buyers drops to 21% and the median buyer age climbs...
New York Congressman’s Legislation Would Allow Tax Deductions on Utility Bills
U.S. Rep. Josh Riley (D‑Ithaca) introduced the “No Tax on Utility Bills Act,” a bipartisan bill that would let taxpayers deduct the taxes and state‑mandated surcharges embedded in gas and electric bills. The legislation would apply to both residential and...
Balancing Executive Incentives with Tax Penalties
Recent FTC action revived non‑compete agreements, giving companies a new lever to offset golden parachute tax exposure. Golden parachutes—cash, stock or benefits paid on a change of control—still trigger a 20% excise tax and loss of corporate deductions when payments...
Tax Attorneys Warn Credit‑card Cash‑back Rewards May Be Taxable Income
Tax attorney Jasmine DiLucci says cash‑back credit‑card rewards are not automatically tax‑free and can increase taxable income for business users. The IRS treats cash‑back as a purchase‑price reduction, which reduces deductions and creates a back‑door tax bite. Consumers could face...
I Will Retire in My Early 50s. I Have $3.2 Million — only $200,000 Is in a Traditional IRA. Have...
A 45‑year‑old investor with $3.2 million in assets plans to retire by age 52. Their portfolio includes $506,000 in a Roth IRA, $197,000 in a rollover IRA, $36,000 in a Roth 401(k), and only $200,000 in a traditional IRA, with the...
Do I Earn Too Much to Have an IRA?
The article explains that a single taxpayer earning $120,000 in 2025 exceeds the traditional IRA deduction phase‑out range of $79,000‑$89,000 if covered by an employer plan. If the taxpayer is not covered, there is no income limit and the contribution...
Vanguard's NY Municipal Fund Offers Triple Tax-Free Returns
About a year ago, Vanguard launched a municipal bond fund for New York residents ticker $MUNY that is triple tax free for New York residents with a low expense ratio. Seems pretty good.
The CFO Playbook for Cannabis in 2026
The CFO playbook for cannabis in 2026 outlines how finance leaders are adapting to a sector still hampered by federal prohibition and the tax constraints of Section 280E. It highlights a New York dispensary that imposed strict cash discipline to grow despite...
The 2026 EBL Limit Is Much Lower Than the 2025 Limit
The Tax Cuts and Jobs Act of 2017 created Excess Business Loss (EBL) limits to curb large agricultural loss deductions, originally set at $250,000 for single filers and $500,000 for married couples. Those caps were indexed to inflation, reaching $313,000...
Wells Fargo Warns Primary Residence Can Swing Tax Bill by Thousands
Wells Fargo released an advisory explaining that the state where a homeowner claims primary residence can change a taxpayer’s liability by thousands of dollars. The bank warns that mis‑identifying domicile can trigger double‑digit state income‑tax rates in high‑tax states, while...
Income Tax Rule Changes From 1st April 2026. How Will It Impact the Buyback of Shares? Explained
From 1 April 2026, Indian income‑tax law reclassifies share‑buyback proceeds from deemed dividends to capital gains. The gain equals the buyback price minus acquisition cost and is taxed as short‑term or long‑term capital gains based on the holding period. Short‑term gains follow...
Kiplinger Unveils Counterintuitive Tax Strategy That Could Save Retirees Thousands
Kiplinger reports a novel tax‑planning approach that encourages high‑net‑worth retirees to deliberately move into a higher tax bracket now, potentially saving them tens of thousands of dollars in future required minimum distributions. The advice challenges conventional wisdom that staying in...
HSAs’ Triple Tax Benefit Can Be Outweighed by HDHP Costs
Why Health Savings Accounts (HSAs) Aren’t Always Worth The ‘Triple Tax Savings’ Advantage: https://t.co/6zrY3GAuEd HSAs require individuals to be covered by a High Deductible Health Plan (HDHP), which has tradeoffs compared to traditional health insurance plans. While HDHPs are often expected to...
:max_bytes(150000):strip_icc():format(jpeg)/curved-skyscraper-against-blue-sky-969510128-f7395d8e1cac42329e854a0061a4aa4a-a88ef10a48b14f5bb6dd24605b991bb3.jpg)
What Is a Tax Treaty Between Countries and How Does It Work?
A tax treaty is a bilateral agreement that eliminates double taxation on both passive and active income by allocating taxing rights between a source and a residence country. The two dominant frameworks are the OECD model, which generally benefits capital‑exporting...
The Hidden Tax Trap Waiting Inside Your Inherited IRA
Inheriting a traditional IRA triggers a 10‑year distribution rule for non‑spouse beneficiaries, often accompanied by required minimum distributions (RMDs). Withdrawals are treated as ordinary income, potentially pushing heirs into higher tax brackets and affecting other benefits. Roth IRA inheritances avoid...
Kiplinger Urges Higher Tax Bracket Now to Slash Future RMD Taxes, Saving Thousands
Kiplinger’s latest wealth‑management column advises individuals to consider moving into the next tax bracket before year‑end. The strategy, aimed at reducing future required minimum distribution (RMD) taxes, could save families tens of thousands of dollars over the long term.
QSBS Eligibility Checklist: Does Your Stock Qualify Under Section 1202?
The article provides a step‑by‑step checklist to determine whether a stock qualifies as Qualified Small Business Stock (QSBS) under IRC Section 1202. It outlines eight eligibility criteria—including C‑corporation status, a $75 million gross‑asset ceiling at issuance, direct original issuance, an active‑business...
:max_bytes(150000):strip_icc():format(jpeg)/gross-up-final-4c954a62f820448cae7d9a01537ff1b1.jpg)
Understanding Gross-Up: Definition, Formula, Examples & Calculation
Gross‑up is a compensation technique where employers add a pre‑tax amount to a payment so the employee receives a predetermined net amount after taxes. It is most often applied to one‑time benefits such as bonuses, severance, or relocation expenses, using...
‘I Hope to Retire at 59’: I Have $950,000 in My 401(k)s. When Do I Do a Roth Conversion?
A 53‑year‑old client with a $950,000 combined 401(k) balance wants to retire at 59, while his 50‑year‑old wife plans to work until 65. They carry a $1,200 monthly mortgage and $7,000 in non‑housing expenses. The client seeks guidance on the...
I'm a Wealth Adviser: This Proactive Tax Strategy Maximizes What You Actually Keep After Taxes
Wealth advisers stress that tax planning must be integrated with investment management to protect after‑tax returns. The article recommends beginning coordination 12‑24 months before large capital‑gain events, concentrated stock holdings, or liquidity events, allowing loss harvesting, asset‑location shifts, and charitable...
Tax Law Highlights | The Reduction of Tax Incentives Under Complementary Law No. 224
Brazil’s Complementary Law No. 224/2025 introduces a linear reduction of federal tax, financial and credit incentives, affecting PIS/PASEP, COFINS, IRPJ, CSLL, import duties, IPI and employer contributions. The law, grounded in Constitutional Amendment 109/2021, sets new calculation rules that cap exemptions at...
Oregon QSBS Decoupling Is Law: What Kotek's Signing Letter — and the Referendum — Mean for Founders
Governor Tina Kotek signed Senate Bill 1507 on April 9, 2026, officially decoupling Oregon from the federal qualified small‑business stock (QSBS) exclusion and applying the change retroactively to Jan 1, 2026. The move means Oregon residents must pay state tax on gains that remain...
Congress Targets 75% Cut to Estate Tax Exemption, Shaking Wealth Management
U.S. Senator Chris Van Hollen introduced legislation to slash the federal estate and gift tax exemptions by more than 75%, reverting them to 2009 levels. The proposal would lower the individual estate exemption to $3.5 million and the lifetime gift exemption...
Making Tax Sense Out of March Madness
Starting in 2026, the One Big Beautiful Bill Act (OBBBA) limits the amount of gambling losses that individual taxpayers can deduct to 90% of their total losses, while the traditional cap that losses cannot exceed winnings remains. The change means...
Turn Your Home Into a Tax-Deductible Business Asset
The Augusta Rule lets you rent your home to your business up to 14 times a year at the going market rate. That payment moves from your business bank account to your personal account and the business writes it off...