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.
Trump Tax Law Boosts Refunds by $350, Yet 60% of Savings Flow to Top Fifth of Earners
The 2026 tax bill raised the average U.S. tax refund by $350 to $3,521, but the Tax Policy Center estimates that roughly 60% of the total savings go to the top fifth of households earning more than $217,000. Wealth managers are scrambling to adjust strategies as the law deepens income inequality.
2026 Charitable Deductions Available With Standard Deduction
IMPORTANT: in 2026, you can deduct charitable donations even if you take a standard deduction (up to $1,000 for single, or $2,000 married) Please track all your cash donations in 2026. They could help save on taxes (whereas you had to...
Cash Balance Plans Offer $250K Tax Deductions for High Earners
There’s a lesser-known retirement plan for high earners that almost nobody uses If you’re earning mid six figures or higher, this plan can potentially unlock a $250K+ tax deduction each year Here’s a simple explanation of how a cash balance plan works:
351 Exchanges Are Gaining Momentum, and Most Firms Are Underestimating the Risk
Section 351 exchanges, which let high‑net‑worth investors swap concentrated stock for diversified ETFs without triggering taxes, are moving from niche to mainstream. The article cites roughly $900 million in conversions across two funds earlier this year, underscoring rapid adoption. However, many advisory...
The One Big Beautiful Bill’s Hidden Complexity: How Corporate Tax Teams Can Stay Ahead
The One Big Beautiful Bill Act (OBBBA) restores 100% bonus depreciation, makes domestic R&D expensing immediate, and makes tax‑credit transferability permanent, unlocking sizable cash‑flow gains for firms that act quickly. Companies buying $100 million in credits can save $5‑9 million, but the...
You Have Until April 15 to Get This $8,000 Roth IRA Freebie — No Matter What Your Income
The article reminds taxpayers that the deadline to fund a Roth IRA for the 2025 tax year is April 15, 2026, and that the backdoor Roth strategy lets anyone contribute up to $8,000 regardless of income. The backdoor involves a nondeductible...
Deductions Through Bonus Depreciation and TPR – Maximize and Plan
The One Big Beautiful Bill Act (OBBBA) permanently restores 100% bonus depreciation for qualified production property (QPP) placed in service after Jan 19 2025, overturning the TCJA’s scheduled phase‑out that would have capped 2025 deductions at 40%. The legislation creates a new...
Wealthy Families Turn to Timing Over Rates with IDGT Trusts After $15 M Estate Tax Exemption Rise
Fidelity Wealth Management released a detailed briefing on intentionally defective grantor trusts (IDGTs), urging ultra‑high‑net‑worth families to prioritize timing of asset moves over marginal tax‑rate differences. The guide comes as the federal estate‑tax exemption rose to $15 million per person ($30 million...
This Creative Money Transfer Strategy Among Family Members Could Raise Red Flags with CRA
A Canadian couple used a CRA‑prescribed‑rate loan of roughly $370,000 USD to shift investment income, while the husband gifted about $74,000 USD to their adult son, who then transferred the same amount to his mother and back to the husband to reduce...
Clean Energy Tax Credits: New Guidance and Industry Response
The episode breaks down the Treasury and IRS’s new Notice 2026-15, which clarifies material assistance and prohibited foreign entity (PFE) rules for clean‑energy tax credits under the Inflation Reduction Act’s One Big Beautiful Bill Act. Guest Jennifer Bernardini, a PwC...
The R&D Tax Credit: A Powerful but Overlooked Incentive for the Agriculture Industry
The federal Research and Development (R&D) Tax Credit, codified under IRC Section 41, now extends to agricultural innovators who experiment with crops, livestock, and production processes. Qualified Small Businesses (gross receipts under $5 million) can apply up to $500,000 of the credit...
Why Entrepreneurs Are Turning to Trading Structures for Income Deferral
Entrepreneurs facing sudden income spikes are adopting trading structures to defer taxable earnings and smooth cash flow. By establishing entities that qualify as active businesses under IRC §162, they can generate legitimate trading losses that offset ordinary income. Advisory firms...
State Tax Comparison for Startup Founders: Where to Incorporate and Where to Live
The guide breaks down how incorporation state and personal residence state affect a founder’s tax bill, emphasizing that residence decisions can swing after‑tax proceeds by millions. It compares Delaware’s standard corporate framework with personal tax regimes in high‑tax states like...
Unlock Early 401k Access for Tax‑Free Retirement
Many finance influencers say "get your 401k match, then invest in a brokerage" Main argument is that you can retire early with brokerage I disagree because you can access your 401k early with 72t SoSEPP, or Rule of 55. If you're a high...
Washington's New Income Tax: The Complete Guide for Founders, Investors, and High Earners
Governor Ferguson signed ESSB 6346 on March 30, 2026, establishing Washington’s first broad‑based income tax—a 9.9% levy on adjusted gross income exceeding $1 million, effective January 1, 2028. The law reshapes tax planning for founders, investors, executives, and high‑earning residents, introducing residency rules, a marriage...
The Complete Guide to Qualified Small Business Stock (QSBS): Section 1202 Explained
Section 1202 of the Internal Revenue Code lets founders and early investors exclude up to $15 million of capital gains when they sell qualified small business stock (QSBS) after a five‑year hold. The One Big Beautiful Bill Act (OBBBA) enacted in July 2025 raised the...
You Have Until April 15 to Get This $8,000 Roth IRA Freebie — No Matter W...
Tax day on April 15 is the final deadline to fund a 2025 Roth IRA, even for high‑income earners, by using the backdoor Roth strategy. The two‑step process lets anyone contribute up to $8,000 (plus a $1,000 catch‑up for those 50...
How 'Married Filing Separately' Status Could Affect Trump Tax Breaks This Season
The 2025 tax season introduces new deductions under President Trump’s recent legislation, but married couples must decide whether to file jointly or separately. Filing jointly generally offers a larger standard deduction and broader eligibility for credits, while filing separately can...
Telestrategies Communications Taxation 2026
The Telestrategies Communications Taxation 2026 conference convenes 300‑400 tax professionals from telecom, cable, cloud and media firms in San Diego from May 6‑8. Featuring Vertex‑led sessions on continuous compliance, modern tax engines, and the rising wave of indirect‑tax audits, the event...
Locked Into Concentrated Capital Gains? Exchange Funds Could Help
Exchange funds let investors swap concentrated, highly‑appreciated stocks for a diversified basket, deferring capital‑gains taxes under Section 721. A mandatory seven‑year hold period spreads gains across participants, instantly reducing single‑stock risk. Start‑ups like Cache are popularizing the model, amassing over $1.25 billion...
Accounting for Cannabis (#393)
In episode 393, Steve Bragg explains how the federal prohibition of marijuana under Section 280E forces cannabis companies to treat book accounting and tax accounting as two separate, often divergent, processes. While financial statements follow normal GAAP, the IRS disallows...
How New SR&ED Changes Could Supercharge Canadian Hard Tech and Manufacturing Startups
Canada’s Scientific Research and Experimental Development (SR&ED) tax incentive program, which returned roughly $3.3 billion USD to over 22,000 firms in 2025, has been revamped to better serve hard‑tech and manufacturing startups. The refundable credit limit has doubled to $6 million CAD...
QCDs and DAFs: A Practical Guide for Donors and Advisors
Qualified Charitable Distributions (QCDs) let donors 70½ or older move up to $111,000 annually from IRAs directly to public charities, counting toward required minimum distributions while staying out of taxable income. For 2026 the limit doubles to $222,000 for married...
Rush to Take Pension Lump Sum Early Hits Five Year High over Inheritance Tax Fears
A record 116,000 Britons aged 55 took tax‑free pension lump‑sum withdrawals in 2024/25, pulling out £2.3 bn (about $2.9 bn), the highest level in five years. The surge follows the 2024 Autumn Budget announcement that unused pension pots will face up to...
Philadelphia’s Story Factory Secures QPF Status, Unlocking Up to 30% Tax Credit for Film Crews
The Story Factory, a 12,000‑sq‑ft production hub at 5th and Oxford, has been granted qualified production facility (QPF) status by the Pennsylvania Film Office. The designation gives users a tax credit of up to 30% and makes the site the...
Physicians Overpay Taxes—Learn How to Reclaim Income
Why physicians pay more in taxes and how to reclaim your income [PODCAST] http://dlvr.it/TRxTZR Podcast #PracticeManagement
ISOs Offer Wealth Potential, But Tax Risks Loom
For clients receiving Incentive Stock Options (ISOs) as part of their compensation, the potential for wealth creation can be significant – but so too is the risk of adverse tax consequences if not handled properly. https://t.co/YA6mBVn0qA #ISOs
![Why Physicians Pay More in Taxes and How to Reclaim Your Income [PODCAST]](/cdn-cgi/image/width=1200,quality=75,format=auto,fit=cover/https://kevinmd.com/wp-content/uploads/65a06f47-06d1-44f6-b074-deb9a2d19a25.jpeg)
Why Physicians Pay More in Taxes and How to Reclaim Your Income [PODCAST]
Physician earnings surge after residency, but many doctors face unexpectedly high tax bills due to progressive rates, payroll taxes, and under‑withholding. Tax specialist Logan Foltz explains that most physicians lack basic tax literacy, especially when transitioning from W‑2 resident salaries...
IRS Enables Online 83(b) Election, Ending Postal Trips
The IRS now allowing you to submit an 83(b) election online is a game changer This has now eliminated my only remaining reason for going to the post office https://t.co/gjjLFqI6F4
Washington's Millionaire Tax Is Now Law. Here's What One Seattle Wealth Advisor Is Telling Clients
Washington enacted a 9.9% millionaire tax on households earning over $1 million, projected to generate about $3 billion annually from roughly 21,000 filers. Collections start in 2029, but the law faces immediate constitutional challenges that could delay or overturn it. Ultra‑high‑net‑worth advisors,...
Combine Cost Seg, Depreciation, RE Pro to Slash Taxes
Cost seg + accelerated depreciation + RE pro status (so you can use the losses to offset active income) a v powerful combo (I actually looked into starting a business helping non-working spouses get and maintain RE pro status, but couldn't...
Remote Work and State Taxes: What You Need to Know
The Tax Foundation’s Katherine Loughead explained that 22 states technically require a tax return even for a single hour of work, such as babysitting, highlighting the tangled web of non‑resident income‑tax rules. The discussion, hosted on The Deduction podcast, focused...
Stop Overpaying the IRS — Use These 4 Proven Strategies to Lower Your Taxes and Grow Cash Flow
Entrepreneurs can slash their tax bills and boost cash flow by applying four proven tactics: adopting an S‑corporation structure, leveraging 100% bonus depreciation, maximizing deductions such as the home‑office and mileage write‑offs, and automating expense tracking. The article notes that...
NY Lawmaker Aims for SALT Expansion
Republican Rep. Nick LaLota of New York is pushing to extend the temporary $40,000 SALT deduction cap beyond its five‑year sunset. He seeks to embed additional SALT benefits in the upcoming GOP spending bill, which could also include tax provisions....
Doctors Earn More Yet Feel Broke Due to Tax Ignorance
Physicians are expected to master complexity, but many finish training without anyone teaching them why a bigger paycheck can still feel financially tight. That is not a personal failure. It is a training gap. This episode of The Podcast by KevinMD gets at...
S‑corp Composite Taxes Often Qualify for Resident Credit
#TaxTwitter Just a friendly reminder that state composite tax payments made by a S corp on behalf of a shareholder usually qualify for the "credit for taxes paid to other states" on the SH's resident state return.
We’re in Our 70s with No Heirs. I Like Donating $30,000 From Our $700,000 IRA to Charity — My Husband...
A couple in their late 70s with $700,000 in IRAs and $30,000 annual required minimum distributions (RMDs) are using qualified charitable distributions (QCDs) to donate the full RMD tax‑free to scholarships. Their other income sources cover all living expenses, and...
Biofuel Lobby Urges 45Z Rule Amid Tax Credit Uncertainty
Biofuel Groups Push 45Z Rule as Delayed USDA Emissions Tool Clouds Tax Credit Value https://t.co/e4B9eUJeY4
Planning for Pensions and IHT
In this episode, hosts Roger Engelbert and Peter Liberace discuss the upcoming change on 6 April 2027 that will bring most unused defined‑contribution pension funds back into a person’s estate for inheritance‑tax (IHT) purposes. They trace the history from the original pension‑only‑income...
Stop Using LLCs to Trick Family Into Ownership
stop f’ing creating LLCs and either adding your spouse or your children as part owners and thinking you’re really clever
Common RMD Mistakes Threaten Millions in Penalties for 2026 Retirees
The Motley Fool warns that three frequent required minimum distribution (RMD) mistakes could unleash 25% penalties, potentially costing retirees billions in 2026. Mis‑timing the first RMD, assuming withdrawals must be spent, and large one‑time Roth conversions are the biggest traps,...
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Applicable Federal Rate (AFR): Definition and Usage Guide
The IRS publishes a monthly Applicable Federal Rate (AFR) to set a minimum interest benchmark for private loans, categorizing rates by short‑term, mid‑term, and long‑term durations. The AFR is derived from Treasury yields and is used to prevent below‑market loans...
Easements Represent a Fractional Property Right, Valued Proportionally
https://t.co/C38z4vpXzp The ownership of land is a bundle of rights. When you donate an easement you are giving away part of the bundle not the whole bundle. So an easement will be worth a percentage of what was paid for the...
25+ OBBBA Income Tax Strategies Still Hiding in Every 2025 Return on Your Desk
The 2025 tax season brings the new OBBBA provisions, which add roughly $4,000 in average tax cuts per filer when both individual and business benefits are combined. While software automatically captures standard deductions and the Child Tax Credit, it misses...
Trump Administration Releases Guidance on Clean Energy Tax Credit Restrictions
The Treasury and IRS issued Notice 2026‑15 to clarify how clean‑energy tax credits under sections 45Y, 48E and 45X are limited for projects tied to Prohibited Foreign Entities (PFEs) under the One, Big, Beautiful Bill Act. The guidance defines "effective...
Estate Planning Before 2028: How Washington's Income Tax Changes the Calculus
Washington will impose a 9.9% income tax on earnings above $1 million starting Jan 1 2028, adding a second layer to its already aggressive estate tax regime. The combined effect creates a double‑tax problem for high‑net‑worth residents, making the pre‑2028 window the most...
Washington Income Tax: What Happens If You Move Mid-Year?
Washington’s new income tax includes a part‑year residency provision that prorates both the tax base and the $1 million standard deduction based on days of residency. Under §406, taxpayers only owe tax on income earned while a Washington resident, with the...
Charitable Giving Strategies to Reduce Your Washington Income Tax
Washington’s new 9.9% income tax introduces a charitable deduction under §309, limited to $100,000 per year, which can shave up to $9,900 off a taxpayer’s liability. The deduction mirrors federal IRC §170 gifts, but its cap means high‑income earners must look...
How Millennial and Gen Z Entrepreneurs Are Maximizing 2025 Tax Savings
Millennial and Gen Z entrepreneurs are turning tax planning into a proactive growth tool, using AI-driven loss harvesting and real‑time accounting to cut liabilities before year‑end. They favor S‑corporations or LLCs taxed as S‑corps to lower self‑employment taxes and gain pass‑through...
Three Fiscal Landmines Faced by Family Offices
The One Big Beautiful Bill Act (OBBBA) cemented a $15 million estate‑gift exemption but introduced a 35 % cap on itemized deductions and a 0.5 % AGI floor that erodes charitable benefits for high‑income families. A pending California billionaire tax would levy a one‑time 5 % charge on...