#tax-planning
Strategic tax planning to minimize liability and maximize savings
A rabbi trust defers tax but leaves the employee behind your creditors in bankruptcy; a secular trust is IRS-taxed at funding. Pick by who bears credit risk.
Annualization applies only when you changed accounting periods — IRS Section 443 lets startups and shutdowns figure stub-year tax normally, no scaling up.
About 70% of a business owner's wealth sits in the business; measure the ratio, then diversify with staged sales, Section 1202 QSBS, and outside accounts.
Mississippi's franchise tax falls to $0.50 per $1,000 of capital over $100,000 for 2026, then repeals in 2028 — S corps still owe it at the entity level.
Montana's 2026 commercial rate drops to 1.50% below $2.27M, yet floating mills can still raise your bill — verify homestead and rental enrollment first.
US self-employment tax is 15.3% on 92.35% of net profit — about 14.1% effective. Price it in with a five-step rate formula, not salary divided by 2,080.
W-2Gs report single wagers, not net profit. IRS lets you net wins per session, deduct losses only if you itemize under the 90% cap, and file where you bet.
A tender offer's ISO disqualifying-disposition income lands on your W-2 with no federal withholding — plan US estimated taxes before the window closes.
Leaving the cloud for a colo rack turns opex into capex — servers are 5-year MACRS property, but Section 179 or 100% bonus can expense them in year one.
Home equity agreements trade cash now for a share of your home's future value — no interest, but a balloon settlement and no IRS mortgage-interest deduction.
An IRS Section 453 installment sale spreads the gain across your retirement, while $19,000 annual gifts and 20-40% valuation discounts move value tax-free.
UAE Small Business Relief ends for tax periods after December 31, 2026 — elect it on your final return, but skip it in a loss year to keep the carryforward.
