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.
What Counts as Washington Taxable Income Under ESSB 6346?
Washington’s new income tax under ESSB 6346 uses federal adjusted gross income as its starting point, then applies state‑specific additions, subtractions, and structural adjustments. After these modifications, a $1 million household standard deduction is allowed and the remaining amount is taxed at 9.9%. The framework means that income excluded from federal AGI—such as qualified small‑business stock gains—generally stays out of Washington’s tax base. Taxpayers must carefully document and allocate income, especially multistate earners, to avoid disputes.
TinyLog: You Should Consider Moving Your Business to the US
The author is leaving Germany for Thailand and restructuring his online business as a U.S. LLC to escape Germany’s 45 % top income‑tax rate. Thailand’s territorial tax regime only taxes money physically remitted into the country, allowing profits to stay in...
Betterment Widens Solo 401(k) Push Through Osaic and HUB Advisors
Betterment Advisor Solutions is launching its all‑digital solo 401(k) product through the Osaic and Hub International advisor networks, giving roughly 10,000 advisors access to a market of about 9 million self‑employed Americans who currently lack such retirement plans. Federal Reserve data...
Tax Loss Harvesting in Volatile Equity Markets: Q1 2026
Parametric’s direct‑indexing platform harvested over $3.9 billion in losses in Q1 2026, delivering an estimated $1.5 billion tax benefit to Custom Core investors. The S&P 500 fell 4.33 % for the quarter, with Information Technology down 9.13 % and Energy soaring 38 % after the U.S. offensive...
Wyden Introduces Bills to Close Tax Shelters
Senate Finance Committee ranking member Ron Wyden introduced two bills targeting tax shelters used by the ultra‑wealthy. The Getting Rid of Abusive Trusts Act would tighten grantor retained annuity trusts (GRATs) by imposing a 15‑year minimum term and treating transfers...
Tax Court OKs Disallowance of Accrued Expenses
Tax Court affirmed the IRS’s disallowance of over $450,000 in deductions for a California hospice‑care C corporation that used the accrual method but failed to record income and expenses accurately. The IRS also found the corporation under‑reported more than $200,000...
A Valid Business Purpose: Virginia Letter Ruling Concludes No Add Back Required
The Virginia Tax Commissioner issued a letter ruling that exempts a corporate taxpayer from the state’s intercompany interest add‑back requirement. The taxpayer demonstrated that its centralized cash‑management system, which routed cash through the parent and used intercompany loans, served legitimate...
Washington’s Capital Gains Tax Charitable Deduction Has a Hidden Catch
Washington’s capital gains tax offers a charitable deduction, but it only applies when the donation is made to a “qualified organization” that is principally directed and managed within the state. The rule diverges from federal law, which merely requires 501(c)(3)...
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What Is the Generation-Skipping Transfer Tax (GSTT) and Who Pays?
The generation‑skipping transfer tax (GSTT) is a federal levy that applies when property is gifted or bequeathed to a beneficiary at least 37½ years younger than the donor, typically a grandchild. Introduced in 1976, the GSTT closes a loophole that...
A Silent Tax Threat May Be Lurking in Your Portfolio
Investors often overlook asset location—the practice of placing investments in the most tax‑efficient account type. A Motley Fool Money discussion highlighted that holding tax‑inefficient assets like bond funds in taxable brokerage accounts can erode returns, while Roth and traditional retirement...
Pro‑Growth Tax Agenda Boosts Business Investment and Wage Growth, but Reversal Risks Loom
Recent federal tax reforms that make small‑business deductions permanent and expand R&D expensing are already prompting higher cash flow and hiring plans among U.S. firms. Analysts say the stability these measures provide could reinforce long‑term investment, but they caution that...
UK Chancellor to Review Double Taxation Rules in Bid to Attract Expats
UK Chancellor Rachel Reeves announced a review of the UK‑US double taxation rules that currently force American earners to pay tax in both countries after moving to Britain. The move follows the 2025 abolition of the non‑dom regime, which left...
Private Trust Company Design Considerations for Family Wealth Planning
In this episode, ACTEC Fellow Elise McGee explains the key design considerations for private trust companies (PTCs) used by ultra‑high‑net‑worth families. She clarifies why a PTC should be separate from a family office, outlines regulatory choices between regulated and unregulated jurisdictions,...
How To Avoid The Pain of Estimated Tax Payments in Retirement #301
In episode 301 of Retire with Ryan, host Ryan Morrissey explains why underpayment penalties for estimated taxes are soaring—$1.3 billion in 2024, triple the 2021 amount—and how retirees can avoid them. He outlines the IRS’s safe‑harbor rules (paying 90% of the...
ISO 27914:2026: A New Potential Long‑Term Solution for Section 45Q Permanent Secure Geological Storage
The EPA’s proposed repeal of Subpart RR threatens the reporting foundation for Section 45Q carbon‑capture tax credits. ISO 27914:2026, released on April 1, 2026, fills the gap by offering detailed quantification, monitoring, reporting and verification (MRV) standards for permanent geological CO₂ storage. Treasury and...
The Alternative Minimum Tax and Stock Options: A Complete Guide for Washington Startup Employees
The guide explains how the federal Alternative Minimum Tax (AMT) hits incentive stock options (ISOs) and how Washington’s new tax regime reshapes planning. The 2026 One Big Beautiful Bill Act raises the AMT exemption to $90,100 for singles and $140,200...
RSUs and Washington State's New Taxes: What Seattle Tech Employees Need to Know
Washington’s new tax regime adds a 7‑9.9% capital‑gains levy (effective 2025) and a 9.9% broad‑based income tax (effective 2028) that together reshape the cost of restricted stock units for Seattle tech workers. RSU vesting is ordinary income, so any vesting...
Robbing Peter to Pay Paul: A(nother) Look at Long/Short Direct Index Tax-Loss Harvesting
Leveraged long/short direct‑index tax‑loss harvesting (LSDI) lets investors swap a concentrated, high‑cost‑basis stock for a diversified basket without paying capital‑gains tax up front. The authors model a $10 million Shopify holding and find that manager fees—0.5% on the long side and...
The 2025 Tax Changes Could Save Small-Business Owners Thousands—If You Know Where to Look
The 2025 tax package delivers the most substantial overhaul for U.S. entrepreneurs since 2017, targeting sole proprietors, LLCs and S‑corporations. It widens tax brackets, expands the SALT deduction to $40,000 and makes the qualified business income deduction permanent. Additional generous...
Mega Backdoor Roth Gains Traction, Offering Up to $72K Extra Savings for High Earners
Financial writers are spotlighting the mega backdoor Roth as a fast‑growing option for high‑income earners. The method lets participants funnel up to $72,000 a year into a Roth account by using after‑tax 401(k) contributions and in‑service conversions, bypassing traditional income...
Withdraw Up to $65K Gains Tax‑Free
You can pay 0% in taxes on your investments: 0% long term capital gains rate applies if your taxable income is <= $49,450 (single) or $98,900 (mfj) After standard deduction, you can withdraw $65,550 (single) or $131,100 (mfj) of LT gains from...
Fidelity and AARP Warn Retirees of 401(k) Withdrawal Pitfalls, Emphasize Loan Options
Fidelity and AARP jointly warned Americans that cashing out a 401(k) before age 59½ can strip 25‑35% of the amount withdrawn, and urged workers to consider 401(k) loans instead of outright distributions. The advisory comes as Social Security benefits average...
US Tax Deadline 2026: Net Investment Income Tax (NIIT) Explained for Investors
The Net Investment Income Tax (NIIT) is a 3.8% federal surtax on passive income that kicks in when a taxpayer’s modified adjusted gross income exceeds $200,000 for singles or $250,000 for married couples filing jointly. With the April 15, 2026...
Captive Insurance + PPLI: Tax‑Free Crypto Family Office
Captive insurance + PPLI = the crypto family office cheat code. Pay premiums to your own insurer, invest them in crypto, hedge funds, or real estate. Grow it tax-free. Borrow tax-free. Heirs inherit tax-free. It's straight from Buffett’s playbook.
Digital Creators Can Now Receive Tax‑free Tips
Instead of getting paid as a tax advisor, can you earn tax-free tips as a "tax-fluencer"? Final Treasury Regulations include "no tax on tips" for digital content creators, such as streamers, online video creators, social media influencers, and podcasters. https://t.co/FyI6F9noBQ
Section 1045 Rollovers: How to Defer QSBS Gains When You Sell Too Early
Section 1045 permits owners of Qualified Small Business Stock (QSBS) to defer capital gains by reinvesting sale proceeds into new QSBS within 60 days. The rollover treats the original gain as unrecognized, reducing the basis of the replacement shares, while...
IRS Clarifies $25K Tip Deduction, Adds Santa Impersonators
The IRS finalized “no tax on tips” regs—and clarified who qualifies. Yes, up to $25K in tips can be deducted. But only for certain occupations (now defined), and only for voluntary, reported tips. Santa Claus impersonators made the list. Did your job? 👀 https://t.co/q1z55eZskn
April 15 IRA Deadline Lets Retirees Add Up to $8,000 with Earned Income, Cutting 2025 Taxes
Taxpayers have until April 15, 2026, to make IRA contributions for the 2025 tax year, and retirees who generate as little as $1,000 of earned income can still add up to $8,000. The contribution can shave thousands off a 2025...
Gen X Workers Are Making 10 Tax Mistakes that Can Cost Them Thousands. How to Fix Them Fast Before Retirement
Gen X workers, now aged 46‑61, face a narrow window before retirement and are prone to ten common tax mistakes that can erode savings by thousands of dollars. Errors range from delaying Roth conversions and mismanaging required minimum distributions to...
IRS Guidance Threatens 401(k) Rollovers to Gold IRAs, Risks Tax Penalties
The Internal Revenue Service released guidance that most gold products are prohibited collectibles in retirement accounts, allowing only 99.5% pure bullion or specific coins like the American Gold Eagle. Violations can trigger immediate taxable distributions, a 10% early‑withdrawal penalty and...
HMRC Keeps ISA Allowance, Giving Savers Up to $22,000 Extra Over 10 Years
HMRC’s renewal of the £20,000 ISA allowance means savers could be up to £17,000 ($21,800) better off over a decade, J.P. Morgan Personal Investing finds. The research highlights the value of early, regular contributions versus lump‑sum timing, prompting advisors to...
BMC Issues Q1 2026 Operations Report Highlighting DAC8 Rollout and Fiscal Shifts
BMC released its Q1 2026 Operations Quarterly Report, flagging the EU DAC8 directive, the final year of the ZEC regime and fresh fiscal reforms as the top drivers of operational change. The analysis shows a surge in advisory demand as firms...
UK Savers Rush to Pull Pensions Early Ahead of April 2027 Inheritance Tax Change
British savers are accelerating early pension withdrawals to avoid a new inheritance‑tax rule slated for April 2027, prompting a surge that hit £2.3 billion last year. Financial planners warn the rush could deplete retirement savings and leave households vulnerable.
Deferred Income May 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...
Can Both Spouses Claim the QSBS Exclusion? What Section 1202 Does and Doesn't Say About Married Couples
Section 1202 lets a taxpayer exclude up to $15 million of qualified small‑business stock (QSBS) gains, but the law is silent on whether a married couple filing jointly receives one $15 million cap or two. The statute only specifies that married filing separately...
Section 179 Enables Massive XRP Tax Write‑Off Opportunities
Section 179 tax code allows infrastructure/software write-offs. Gas fees qualify as business expense. 1,700+ NDAs contain pre-negotiated XRP purchase options. Banks already allocated billions at low prices executables post-appreciation.
2026 Tax Bill Lets Charitable Donations Yield Deductions
Most people donate to charity and get $0 of tax benefit. In 2026, that finally changes because of the new tax bill. Here’s how to take advantage:
When Multiple Tax Rules Collide: Don't Pay a 50% Rate on Your Roth Conversion by Mistake
The Kiplinger Tax Letter warns that Roth conversions in retirement can trigger a hidden "tax torpedo," where multiple tax rules—Social Security taxation, capital‑gains brackets, and the new senior‑deduction phase‑out—apply to the same dollar. In a 65‑plus couple’s scenario, a $60,000...
Shift Taxable Cash Into ISA Before 2027 Cuts
TLDR: if you have money outside of an ISA, that you are paying tax on, and you have excess ISA allowance leftover, it’s probably worth getting it inside of an ISA to avoid future tax. Especially important with the cash...
Fidelity Warns Savers of MAGI Misstep that Can Trigger 6% Annual Penalty Before Tax Day
Fidelity Investments cautions that a surge in last‑minute IRA contributions is exposing savers to a recurring 6% excise tax when they exceed MAGI limits. The firm urges taxpayers to verify their modified adjusted gross income before making a 2025 Roth...
Maximize HSA Growth: Invest All, Reimburse Later
I have $500 in cash in my HSA (my plan’s minimum). The rest is invested in the S&P 500. I’m tracking all my medical expenses and plan to reimburse myself in 20 years. This is how you use HSA to its...
Restricted Stock Vs. Stock Options: Which Is Better for Startup Equity?
Startup equity compensation typically comes in two forms: restricted stock awards and stock options. Restricted stock grants actual shares at grant and, with an 83(b) election, locks in tax on the low initial value, turning future gains into capital gains....
LLC Vs. C-Corp for Startups: How to Choose the Right Entity
The guide breaks down the practical trade‑offs between forming an LLC and a Delaware C‑Corporation for startups. It explains how entity choice affects fundraising mechanics, equity compensation, tax treatment, and long‑term exit strategies such as the QSBS exclusion. Real‑world examples...
IRS Issues Final Regs on Occupations Eligible for OBBBA Tips Deduction
The Treasury and IRS issued final regulations defining which occupations qualify for the “no tax on tips” provision of the One Big Beautiful Bill Act (OBBBA). The rules, finalized after a public comment period, enumerate more than 70 tip‑eligible jobs...
Georgia’s 30% Tax Credit Fuels Atlanta’s Rise as ‘Black Hollywood’
Georgia state officials introduced a 30% entertainment tax credit in 2008, prompting a wave of high‑budget movies to film in Atlanta. The incentive, combined with a 94% population surge since 1990, has cemented the city’s reputation as “Black Hollywood,” reshaping...
US Lags as Other Nations Grant Crypto Exemptions
Other countries exempt crypto already. US falling behind crypto capital narrative. Settlement exemption probable, investment exemption uncertain. Even tax-free selling loses versus holding appreciating assets. Leverage preserves upside despite interest cost.
AARP Deploys Tax‑Aid Network as New $6,000 Senior Deduction Hits Retirees
AARP Foundation Tax‑Aid is mobilizing volunteers at more than 3,600 sites to help retirees claim a new $6,000 senior tax deduction created by the One Big Beautiful Bill Act, a move that could lift after‑tax income for middle‑income seniors by up to $670....
Advisory Revenue Strategies: Navigating the New FICA Tip Credit Landscape, with Jody Padar
The IRS, backed by H.R. 1, is redefining qualified tips and tipped occupations under the Old‑Age, Survivors, and Disability Insurance Benefits Act, ushering in a new FICA Tip Credit regime. Tax advisors must interpret the technical guidance while building data‑driven, repeatable...
MSG Sports Faces $50M Tax Hike, Split Could Raise $75M
Madison Square Garden Sports is facing a $50M+ bump to its annual tax bill with a new tax code provision set to start in 2027. Meanwhile, MSGS is exploring splitting the Knicks and Rangers into separate companies that would push...
An Overview of the Enhanced Senior Deduction
The OB3 Act added §151(d)(5)(C), creating a senior deduction of up to $6,000 per individual 65 or older (or $12,000 for married couples) for tax years 2025‑2028. The deduction lowers taxable income, does not affect AGI, and can be claimed...