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.
Data Centers Are Costing Local Governments Billions
Data‑center tax abatements are draining local government coffers, with three U.S. states—Georgia, Virginia and Texas—each forfeiting more than $1 billion in revenue annually. Good Jobs First reports that 14 additional states fail to disclose the fiscal impact, a practice that conflicts with GAAP standards. The generous incentives are attracting hyperscalers and AI‑focused facilities, while overseas jurisdictions like the UK and Brazil also offer substantial tax reliefs. As the data‑center boom accelerates, the hidden cost to taxpayers is becoming a pressing policy issue.
Why Reverse Morris Trust Deals Demand Strategic Discipline
Emilie Feldman, a Wharton management professor, outlines how reverse Morris Trust (RMT) transactions reshape merger strategy by delivering tax‑free restructuring while pursuing scale‑driven synergies. She stresses that the tax advantage alone does not guarantee success; disciplined target selection and integration...
Why Billion-Dollar Cannabis Companies Look Unprofitable (And Could Turn Profitable Overnight)
Section 280E of the U.S. tax code forces legal cannabis companies to forgo most operating expense deductions, inflating taxable income and creating the illusion of chronic losses. Billion‑dollar firms like Trulieve generate strong top‑line revenue but report negative earnings because...
The Journey From Schedule C to 1120-S: May 19
Intuit’s free 60‑minute live course teaches tax professionals how to transition clients from Schedule C to S‑Corporation status. It covers the Form 2553 election timeline, shareholder eligibility, reasonable officer compensation, and accountable‑plan requirements. Participants also learn to avoid common pitfalls such as...
Simplify Your Taxes: Avoid Complex Investments to Cut Costs
"Simplify. If you have sticker shock when you pay to have your #taxes prepared, it may be because you have made your tax life unnecessarily complicated. Heavy trading in stocks or commodities makes your return prep more expensive. Cryptocurrency transactions and...
Senior Deduction Falls Short of Tax‑free Social Security Promise
The senior deduction goes a long way toward fulfilling Trump’s campaign promise of no tax on #SocialSecurity, but not all the way for higher-income seniors. Tom O’Saben, an EA and director of government relations at @NATPTAX says that if he sees...
Good Financial Reads: Smart Tax Moves Most People Miss
The article bundles four under‑utilized tax tactics for high‑net‑worth individuals. It explains how a live‑in flip can qualify for the Section 121 capital‑gain exclusion after a two‑year ownership period. It shows that donating appreciated securities instead of cash can eliminate capital‑gain...
High Earners Cut Taxes with Short‑Term Rental Strategy
If you made six figures at your W2 last year and still felt personally victimized by your tax bill… Just know you’re just playing a game no one taught you how to win. One of the only ways W2 high...
Good Financial Reads: Smart Tax Moves Most People Miss
The article outlines four under‑utilized tax strategies: the live‑in flip, which lets investors treat a renovated primary residence as a Section 121 exclusion‑eligible sale after two years; donating appreciated securities instead of cash to avoid capital‑gain tax while securing a charitable...
States Rush to Build Clean Energy Projects to Tap Expiring Incentives
U.S. states are accelerating large‑scale renewable projects to capture a 30% federal investment tax credit that expires soon. California, Colorado, New York, New Jersey, Minnesota and Oregon are fast‑tracking solar, wind and battery‑storage builds that must break ground by July 4 and finish...
U.S. Bank Warns Taxpayers They Could Lose Thousands by Defaulting to Standard Deduction in 2025
U.S. Bank alerts millions of taxpayers that the One Big Beautiful Bill Act (OBBBA) has altered key deduction limits, making the automatic standard deduction potentially costly for 2025 returns. The bank says filers who don’t compare itemized versus standard deductions...
Learn How the Ultra‑Rich Preserve Wealth Across Generations
How the Wealthy Mitigate taxes and pass on Generational Wealth. If you are wealthy or plan to be wealthy, you must be at the 10X Wealth Conference. I am bringing the best family office people, tax and estate...
3 Questions to Ask Before Deciding if a Roth Conversion Is Right for You
Roth conversions let retirees shift tax liability from future withdrawals to today, but the decision hinges on three core questions. Taxpayers must assess whether their future tax rate will exceed the current rate, ensure they can cover the conversion tax...
US Court Strikes Down IRS 831(b) Listed Transactions Designation
A U.S. district court in Texas partially struck down IRS regulations governing 831(b) micro‑captive transactions. While the court affirmed the IRS’s designation of these captives as “transactions of interest,” it ruled the agency did not substantiate a presumption that they...
Share Buy-Back Is Capital Reduction, Not Acquisition of Assets, Says Delhi HC
India’s Delhi High Court held that a corporate share buy‑back constitutes a capital reduction rather than an acquisition of assets, and therefore cannot be taxed as deemed profit. The bench emphasized that once shares are extinguished, they no longer exist...
Exit Wounds: The Succession Tax Nobody Planned For
The UK Treasury’s April 6, 2026 budget eliminated the 10 % Business Asset Disposal Relief rate, raising it to 18% and imposing an $228,000 tax on the first £1 m of qualifying gain. A new £2.5 m ($3.2 m) cap on Business and Agricultural Property Relief...
Explaining Dual Consolidated Losses in Cross‑Border Tax
Today, I wrote an email explaining dual consolidated losses in the cross-border context. I feel like @adonnelly50 is the only person who would appreciate this tweet.
Six Pre‑Tax‑Season Moves to Save U.S. Households Thousands in 2026
Rachel Christian, a personal‑finance writer, recommends six year‑round tax‑planning actions—adjusting W‑4 withholding, boosting retirement contributions, and using health‑savings accounts—that could shave thousands off U.S. taxpayers’ 2026 returns. The guidance targets employees, freelancers and families looking to lock in savings before...
Convert Home to Rental, Leverage Deductions and 1031 Exchanges
Converting a home to a rental property fundamentally changes how expenses are treated, how gains are taxed, and how future sales can be structured to maximize tax efficiency. Advisors who understand these rules can help clients navigate the timing of...
Strategic Tax Planning Saves Over $260K Annually
If I did no tax planning or strategy, I'd give up $260K+/year to federal, state, and self-employment taxes. Here's every move I have mapped out for 2026 and why:
The 183-Day Rule and Safe-Harbor Day-Counting for Washington Taxpayers
The article explains Washington’s emerging 183‑day statutory residency rule and how it interacts with domicile analysis for founders leaving the state. It details how states define a “day,” the pitfalls of permanent places of abode, and why merely staying under...
Trust Planning for Washington High Earners: ING, NING, and DING Trusts Under ESSB 6346
Washington will launch a state income tax on residents whose AGI exceeds $1 million in 2028. High‑earning Washingtoners can use non‑grantor trusts—often called ING, NING, or DING—sited in Nevada, South Dakota, or Delaware to shift portfolio and passive investment income out...
QSBS and Washington Residency: Timing Section 1202, the Sale, and the Move
Washington founders face a narrow 20‑month window before ESSB 6346 takes effect, during which federal Section 1202 qualified small business stock (QSBS) treatment, Washington’s 7% capital gains tax, and the new 9.9% income tax intersect. The article outlines four levers—QSBS...
The Marriage Penalty in ESSB 6346: Why Two Unmarried Washington Earners Can Save $40,000 a Year
Washington's ESSB 6346 imposes a 9.9% tax on household income exceeding $1 million, creating a built‑in marriage penalty for dual‑high‑earner couples. A pair earning $700,000 each would pay roughly $39,600 annually, or nearly $600,000 over a 15‑year career, solely because they...
LSDI Fees Often Outweigh Tax-Loss Harvest Savings
"For a typical investor, the fees paid to a leveraged long/short direct indexing (LSDI) tax-loss harvesting manager eat up most of the tax savings. In our base case, the investor pays more than half as much in fees as the...
CA Wealth Tax May Target Founders' Voting Power
The California wealth tax could be levied on founders' voting interests in their companies, which often far exceed their economic stakes. The initiative's drafters say that won't happen. Here's why it might: https://t.co/i71izDeHPS
How the Wealthy Are Planning to Cut Their 2026 Tax Bills
Wealthy Americans are reshaping their 2026 tax strategies after the One Big Beautiful Bill Act made many 2025 provisions permanent. With the estate‑tax exemption now $15 million, advisors are focusing on capital‑gains mitigation through long‑short tax‑loss harvesting and renewed bonus depreciation. Clients are also...
Travel Location Determines Players' Tax Liability
Accountants create a duty-day schedule by having players precisely track their travel. If a player spends an off day at home versus a road city, or rehabs an injury in Florida instead of the club’s home stadium or goes on...
STR Search Launches Turnkey Short‑Term Rental Service for High‑Income Investors
STR Search introduced a technology‑enabled, done‑for‑you short‑term rental acquisition service aimed at investors earning $200,000 to $1 million plus. Backed by a $50,000 tax‑savings guarantee and a $5,000 happiness guarantee, the platform promises to cut 500‑1,000 hours of work per deal.
Supreme Court Rules Offshore Wind Farm Survey Costs Ineligible for Tax Relief
The UK Supreme Court ruled unanimously that environmental survey costs incurred by Ørsted for four offshore wind farms cannot be claimed as capital allowances. The decision means these expenses are ineligible for tax relief, raising the effective cost of development....
Marrying A Non-U.S. Citizen? Your S Corp May Be At Risk
U.S. citizens who marry nonresident aliens risk losing S‑corporation status because foreign community‑property rules can automatically attribute ownership of the business to the spouse. Under the immutability principle, the community‑property regime may continue to apply, making the foreign spouse a...
Marrying A Non-U.S. Citizen? Your S Corp May Be At Risk
U.S. citizens who marry non‑resident aliens risk losing their S‑corporation election because community‑property regimes can deem the foreign spouse a shareholder. Under the immutability principle, ownership rules from the couple’s first habitual residence may persist, automatically invalidating the S status...
A Strategic Playbook for Opportunity Zones 2.0
Opportunity Zones (OZ) have been made permanent and will roll out new regulations in 2026. Starting July 1, states and U.S. territories have a 90‑day window to nominate up to 25% of eligible tracts for the next decade’s Qualified Opportunity Zones...
India's 2026 Income Tax Rules Raise Exemptions, Reviving Old Regime Debate
India’s Treasury announced revised Income Tax Rules for 2026, lifting exemption limits and prompting a fresh clash between the old and new tax regimes. The changes force salaried and high‑net‑worth taxpayers to recalculate their liabilities for FY27, altering after‑tax investment...
Choose a Wyoming Holding Company, Not a Trading Corp
Most attorneys will set you up with a trading corporation when what you actually need is a holding company. The difference matters for long-term capital gains. DWP builds Wyoming holding companies with NAICS code 551112 or 551114, operating agreement provisions...
Tax Day Is Here. How to Pocket More of Your Portfolio's Return, According to Bank of America
Bank of America’s research shows a tax‑aware portfolio (60% stocks, 40% bonds) outperformed a tax‑insensitive counterpart, delivering a 7.4% post‑tax annualized return versus 5.9% over 30 years. The firm recommends three tax‑efficiency levers for investors: favoring share buybacks over qualified...
States Diverge on OBBBA, Complicating Tax Filing Season
The One Big Beautiful Bill Act (OBBBA) is prompting a fragmented response from U.S. states, with some conforming, others decoupling, and many taking a mixed approach. This patchwork is creating a massive tracking and modeling burden for corporate tax departments,...
1 Move Helped Jeff Bezos Save $700 Million
Jeff Bezos moved from Seattle to the ultra‑exclusive Indian Creek Village in Florida in early 2024, buying three properties for about $250 million. After the relocation he sold roughly $13.6 billion of Amazon stock, a timing that allowed him to avoid Washington’s...
Cut Self‑Employment Tax: Use Dividends Over Salary
An investment-only LLC is a disregarded entity until you start pulling income out of it. Once you do, the IRS expects a reasonable W-2 salary, typically $50,000 to $70,000 a year if you are managing your own investments. That salary...
Prepaid Leases Emerge as Residential Solar Customer Pathway to Accessing Federal Tax Credits
The residential solar tax credit (Section 25D) has expired, prompting installers to adopt prepaid lease models that leverage the commercial Section 48 Investment Tax Credit. In a prepaid lease, the solar provider owns the system, claims the 30 percent commercial credit, and passes...
North Carolina Superior Court Rejects DOR’s Attempt to Tax Intercompany Transfers Lacking Consideration
The North Carolina Superior Court ruled that intercompany transfers of asphalt emulsion between Asphalt Emulsion Industries (AEI) and its parent Slurry Pavers, Inc. (SPI) do not constitute taxable sales because they lack bargained‑for consideration. AEI recorded the transfers using hypothetical...
AI-Generated Checklist Demystifies Taxes and Catches Errors
Wins from using Claude Code for my taxes for the firs time: First, the document upload checklist: A while back I uploaded my prior year's 1040 to Claude and asked it to help build me a tax prep checklist: every document I'd...
Testimony: The Impact of the 2025 Reconciliation Law’s Tax Changes on Small Businesses and Lessons for Future Tax Reform
The 2025 reconciliation law cemented key TCJA provisions, making the 20% Section 199A deduction, permanent lower individual tax brackets, 100% bonus depreciation, and full R&D expensing permanent for small businesses. It also doubled the Section 179 expensing limit to $2.5 million and restored...
Investing More Than The Gift Tax Exclusion Limit Shouldn’t Be A Problem
The author contributed roughly $35,000 per child to custodial accounts in 2026, exceeding the $19,000 annual gift‑tax exclusion. The $16,000 overage per child is deducted from the $15 million lifetime exemption, meaning no immediate tax is due. He will file IRS...
IRS Finalizes $25,000 Tip Tax Deduction for 70+ Occupations
The Internal Revenue Service issued final regulations on April 13 that let employees and self‑employed workers in more than 70 tipped occupations deduct up to $25,000 of tips from federal income tax. The rule, effective for tax years 2025‑2028, will...
Turn Tax Returns Into Strategic Profit Plans
Another tax season closed. Now the real work begins. We’re not just filing returns… we’re dissecting them. Every client gets a full financial review, identifying leaks, missed opportunities, and strategic moves. Because the goal isn’t to survive tax season. It’s to reduce liability, increase...
Farmers Exploit Loopholes to Dodge FICA, Celebrate Deduction
Mr. and Mrs. Farmer, enjoying coffee on their 320-acre $15,000 per acre-value farmstead, having never paid FICA tax because they used special farmer-only tax moves to minimize taxable income, celebrate their temporary $6,000 deduction. They earned it!
The Great Wealth Transfer: Strategies to Transfer ‘Superfluous’ Assets Without Taking an Estate Tax Hit
The article defines “superfluous” assets as holdings—second homes, artwork, concentrated stock—that exceed a family’s income needs and can be earmarked for tax‑efficient transfer. It outlines several estate‑planning tools, including Grantor Retained Annuity Trusts, Qualified Personal Residence Trusts, charitable remainder trusts,...
Proposed Elimination of Property Taxes for Seniors May Be Illegal
Next, they will try to eliminate property taxes for those 65 and over 😏 even though legally that might be an issue
Two‑owner LLC Isn’t Automatically a Tax Partnership
Simply because you have a LLC and two owners does not mean you have a partnership for income tax purposes. This will become a podcast episode at some point.