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Schedule M-1 and M-3: Reconciling GAAP Book Income to Taxable Income
·mike

Schedule M-1 and M-3: Reconciling GAAP Book Income to Taxable Income

Schedule M-1 and M-3 reconcile a corporation's GAAP book income to taxable income. This guide explains the $10M and $50M asset thresholds, permanent versus temporary differences, and the recurring reconciling items — depreciation, meals, federal tax expense, bad debt reserves, and stock-based compensation — that draw IRS scrutiny.

tax-compliance
reconciliation
tax-preparation
Rule 72(t) SEPP: How to Tap Your IRA Before 59½ Without the 10% Penalty
·mike

Rule 72(t) SEPP: How to Tap Your IRA Before 59½ Without the 10% Penalty

How Rule 72(t) Series of Substantially Equal Periodic Payments (SEPP) lets retirees tap an IRA or 401(k) before 59½ without the 10% early-withdrawal penalty — covering the three IRS calculation methods, the 5% interest-rate floor from Notice 2022-6, and the recapture-tax mistakes that bust early retirement plans.

retirement-plans
ira
retirement-savings
Roth Conversion Ladder: How FIRE Investors Tap Retirement Accounts Penalty-Free Before Age 59½
·mike

Roth Conversion Ladder: How FIRE Investors Tap Retirement Accounts Penalty-Free Before Age 59½

A Roth conversion ladder converts traditional IRA dollars to Roth in annual tranches, each unlocking penalty-free five tax years later — the core mechanism FIRE retirees use to tap pre-tax accounts before age 59½ while filling low tax brackets.

retirement-savings
tax-planning
ira
ROBS Rollover for Business Startups: How to Use Retirement Funds to Finance a Small Business Without Tax or Penalty
·mike

ROBS Rollover for Business Startups: How to Use Retirement Funds to Finance a Small Business Without Tax or Penalty

A working guide to Rollover as Business Startup (ROBS) arrangements — the five required steps, why only a C corporation qualifies, the Form 5500 and prohibited-transaction rules, IRS-documented failure rates, and when alternatives like SBA loans or 401(k) participant loans make more sense.

retirement-plans
c-corporation
financing
Reverse 1031 Exchange: How to Buy Your Replacement Property Before Selling the Old One
·mike

Reverse 1031 Exchange: How to Buy Your Replacement Property Before Selling the Old One

A reverse 1031 exchange lets a real estate investor close on a replacement property before selling the relinquished one by parking title with an Exchange Accommodation Titleholder under Revenue Procedure 2000-37's safe harbor. The taxpayer must identify the relinquished property within 45 days and complete the swap within 180 days, with no extensions. EAT fees typically run $5,000 to $15,000 above a forward exchange, so the deferred gain needs to be large enough to justify the cost.

real-estate
1031-exchange
tax-planning
PTET in 2026: The SALT Cap Workaround for S-Corps and Partnerships
·mike

PTET in 2026: The SALT Cap Workaround for S-Corps and Partnerships

A 2026 guide to the Pass-Through Entity Tax — how 36+ jurisdictions let S-corps and partnerships convert capped state income taxes into a fully deductible federal business expense, even after OBBBA raised the SALT cap to $40,400.

tax-planning
s-corp
partnerships
Profits Interests Under Rev Proc 93-27: A Guide to Tax-Free LLC Equity Grants
·mike

Profits Interests Under Rev Proc 93-27: A Guide to Tax-Free LLC Equity Grants

Profits interests let LLCs grant equity to service providers tax-free under IRS Revenue Procedure 93-27. This guide covers the safe harbor's three conditions, the threshold value rule, Rev Proc 2001-43 vesting fix, and the self-employment tax tradeoff partners should expect.

equity-instruments
llc
partnerships
The PFIC Form 8621 Tax Trap: Why US Investors Get Punished for Owning Foreign Mutual Funds and ETFs
·mike

The PFIC Form 8621 Tax Trap: Why US Investors Get Punished for Owning Foreign Mutual Funds and ETFs

PFICs (foreign mutual funds, UCITS ETFs) trigger Section 1291 tax for US investors — gains allocated across the holding period, taxed at top ordinary rates, plus compounded interest charges. This guide covers Form 8621, the QEF and mark-to-market elections, the $25k/$50k de minimis filing exception, and how to escape the trap.

tax
international-tax
tax-compliance
Net Unrealized Appreciation: The 401(k) Tax Strategy That Saves Six Figures
·mike

Net Unrealized Appreciation: The 401(k) Tax Strategy That Saves Six Figures

The Net Unrealized Appreciation election lets retirees pay long-term capital gains rates on employer stock distributed from a 401(k) instead of ordinary income, often saving more than $144,000 on a $1 million position. Covers eligibility under IRC 402(e)(4), the lump-sum distribution rule, and the most common mistakes that destroy the strategy.

tax-planning
retirement-savings
capital-gains
Kiddie Tax Form 8615: How Investment Income for Children Under 24 Is Taxed at Parent Rates
·mike

Kiddie Tax Form 8615: How Investment Income for Children Under 24 Is Taxed at Parent Rates

How the federal kiddie tax pulls a child's unearned income above $2,700 in 2026 onto the parent's marginal rate via Form 8615. Mechanics, UTMA/UGMA pitfalls, full-time-student rules through age 23, and planning strategies using 529 plans, Roth IRAs, and gain timing.

tax
tax-planning
personal-finance
Inherited IRA 10-Year Rule: How Non-Spouse Beneficiaries Avoid the 25% Penalty
·mike

Inherited IRA 10-Year Rule: How Non-Spouse Beneficiaries Avoid the 25% Penalty

Non-spouse IRA beneficiaries must empty inherited accounts within 10 years, and annual RMDs become mandatory in 2025 if the original owner died on or after their required beginning date. A missed RMD triggers a 25% excise tax. Only surviving spouses, minor children, disabled or chronically ill individuals, and beneficiaries within 10 years of the deceased's age keep the old stretch treatment.

ira
retirement-savings
tax-planning
ICHRA Explained: How Small Businesses Reimburse Employees Tax-Free for Health Insurance in 2026
·mike

ICHRA Explained: How Small Businesses Reimburse Employees Tax-Free for Health Insurance in 2026

An Individual Coverage HRA lets small employers reimburse workers tax-free for individual ACA plans with no contribution cap, 11 employee classes, and a 9.96% affordability threshold for 2026. Here is how the mechanics, tax treatment, bookkeeping, and 90-day rollout actually work.

health-insurance
small-business
employee-benefits
Показани 2209–2220 от 3710 публикации