Spendthrift vs. Discretionary vs. Support Trusts: Which One Actually Protects the Inheritance
Under US trust law, a discretionary trust plus a spendthrift clause blocks most creditors; a support trust's HEMS payments can be reached.
#tax-planning
Tax Planning
Strategic tax planning to minimize liability and maximize savings
Deed in Lieu of Foreclosure, Explained: How Owners Hand the Keys to the Lender and Skip the Auction
A deed in lieu ends the mortgage without an auction, but the IRS taxes forgiven debt as income — get the deficiency waiver in writing first.
Real Estate Dealer vs. Investor: Why the Same Gain Is Ordinary Income for a Flipper and Capital Gain for a Landlord
Dealer flips face IRS ordinary income plus self-employment tax; investor sales get capital-gains rates, installment sales, and 1031 exchanges.
Earnings and Profits (E&P), Explained: Why Your C Corp Distribution Can Be a Taxable Dividend Even When the Books Show No Profit
A C corp distribution is an IRS-taxable dividend whenever current or accumulated E&P covers it, even with no book profit. Ordering rules and deficit traps.
Municipal Bonds, Explained: How Federal Tax Exemption Works, GO vs. Revenue Bonds, Tax-Equivalent Yield Math, and the AMT and De Minimis Traps
Muni interest is federally tax-free under Section 103, but AMT and the de minimis discount rule can tax it. GO vs. revenue bonds and TEY math, explained.
Roth vs. Traditional: Pay Tax Now or Later?
Pay tax at today's known rate with Roth, or defer with Traditional and risk higher retirement rates — compare brackets, RMDs, and IRS limits to decide.
Short-Term vs. Long-Term Capital Gains: The IRS One-Year Holding Rule, the Rate Gap, and the Anniversary-Day Trap
The IRS counts your holding period from the day after you buy, so an anniversary-date sale is short-term — taxed up to 37% instead of 0–20%.
Fractional 1031 Exchanges Through a Statutory Trust, Explained: How Rev. Rul. 2004-86 Lets Landlords Swap Active Management for Passive Ownership
Under IRS Rev. Rul. 2004-86, a DST interest counts as like-kind real estate — roll sale proceeds into passive property and defer gain under Section 1031.
QSub Elections, Explained: How an S Corporation Puts a Subsidiary on Form 8869
IRS Form 8869 folds a wholly owned subsidiary into its S corporation parent return — one federal filing, two legal entities, a five-year bar if it breaks.
What Are the All-Events Test and Economic Performance? The Two Rules That Decide Which Tax Year an Accrual-Basis Deduction Belongs To
An accrual-basis deduction needs a fixed liability, a determinable amount, and economic performance under IRS Section 461(h) — miss one and it moves a year.
The Dividends Received Deduction, Explained: How C Corporations Deduct 50%, 65%, or 100% of Dividends
C corporations deduct 50%, 65%, or 100% of dividends received — once the stock clears the 45-day holding period. IRS tiers, limits, and traps explained.
Reverse 1031 Exchanges, Explained: How Buying the Replacement Property First Still Defers Your Tax
A reverse 1031 exchange lets you buy the replacement property first under the IRS safe harbor — then sell the old one within 180 days.