tax strategy and optimization
Educational articles in this subcategory.
Glossary: Tax Planning Terms
## Introduction This glossary defines 30 essential tax planning terms for investors. Each term includes a one-sentence definition focused on practica...
Checklist Before Year-End Tax Moves
## Year-End Tax Planning Framework Year-end tax planning requires action before December 31. Unlike retirement account contributions (which may exten...
Tracking Basis in Partnerships and S Corps
## Why Basis Matters for Pass-Through Investors Basis determines two critical outcomes for partners and S corporation shareholders: (1) the amount of...
Coordinating with CPAs on Tax Projections
## Why Mid-Year Tax Projections Matter Tax planning done only at year-end leaves money on the table. By December, many strategies are no longer avail...
Trust Taxation Basics
## What Is a Trust for Tax Purposes A trust is a legal arrangement where one party (the grantor) transfers assets to another party (the trustee) to h...
S Corporation vs. LLC Structures
## Entity Structure Tax Fundamentals Business owners choosing between LLCs and S corporations often focus on liability protection, which is similar f...
Pass-Through Deduction Planning
## Section 199A Qualified Business Income Deduction The Tax Cuts and Jobs Act of 2017 created Section 199A, allowing owners of pass-through entities ...
Filing Form 1116 for Foreign Tax Credits
## How Foreign Tax Credits Work U.S. taxpayers pay tax on worldwide income but receive credits for taxes paid to foreign governments, preventing doub...
Estimated Tax Payments for Investors
## When Estimated Payments Apply Investors with income not subject to withholding must make quarterly estimated tax payments to avoid underpayment pe...
State Residency Planning for Tax Purposes
## Why State Residency Matters for Investors State income tax rates range from 0% to 13.3%, creating annual tax differences of $10,000 to $150,000+ f...
Qualified Charitable Distributions
## What Qualified Charitable Distributions Accomplish A Qualified Charitable Distribution (QCD) allows IRA owners aged 70.5 or older to transfer up t...
Donor-Advised Funds and Charitable Bunching
## Why Charitable Bunching Matters Now The 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction, making itemizing uneconomical for most t...
Net Unrealized Appreciation Strategy
## What Net Unrealized Appreciation Accomplishes Net Unrealized Appreciation (NUA) is a tax provision that allows employees holding employer stock in...
Qualified Small Business Stock Benefits
## What Section 1202 QSBS Exclusion Provides The Qualified Small Business Stock exclusion under IRC Section 1202 allows shareholders to **exclude 100...
Mega Backdoor Roth via 401(k)
## What the Mega Backdoor Roth Accomplishes The mega backdoor Roth allows high earners to contribute **up to $46,000 extra** to Roth accounts annuall...
Backdoor Roth IRA Strategy
## Why High Earners Need the Backdoor Direct Roth IRA contributions are prohibited above certain income thresholds. For 2024, the ability to contribu...
Tax-Loss Harvesting with ETFs
## How Tax-Loss Harvesting Creates Real Value Tax-loss harvesting generates **0.5% to 1.5% in additional after-tax returns annually** during volatile...
Capital Gain Harvesting Windows
## The 0% Capital Gains Rate Most Investors Miss Long-term capital gains are taxed at **0%, 15%, or 20%** depending on your taxable income. For 2024,...
Tax-Efficient Withdrawal Sequencing
## Why Withdrawal Order Determines Retirement Tax Burden The sequence in which you tap different account types can save **$100,000 to $300,000** in l...
Asset Location Across Tax Buckets
## Why Asset Location Matters More Than Most Investors Realize Asset location adds **0.20% to 0.75% in annual after-tax returns** by placing high-tax...