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 planning are essential. The article highlights recent high‑profile RMTs that generated significant shareholder value when strategic fit and operational efficiencies aligned. Feldman warns that missteps can erode gains and attract regulatory scrutiny.
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...
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...
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...
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...
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...
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...
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....
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...
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...
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...
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...
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...
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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...
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...
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 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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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,...
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...