You want to find a tax strategy that fits your facts

S Corporation Election

Example ($200K profit): ≈ $9,900/yr illustrated employment-tax saving before offsets.

IRC §1362(a)(1); §1402 / Rev. Rul. 59-221

Reasonable Compensation

Example ($300K profit, $30K salary vs. $150K defensible): posture — ≈ $18,400/yr back payroll…

IRC §162(a)(1); Rev. Rul. 74-44; §3121(a)

Augusta Rule

Example (14 days × $1,500): $21,000 received, $0 taxable; ≈ $4,000 illustrated tax saved.

IRC §280A(g); §162

Short-Term Rental

Example ($80K loss vs. W-2): only with both gates open — otherwise the same $80,000 pays $0 this…

Reg. §1.469-1T(e)(3)(ii); §280A

Cost Segregation

Example ($1M building, $250K year-one): by nature — only when the loss reaches current income.

IRC §168(k)

Bonus Depreciation & §179 (Your Own Business)

Example ($300K equipment → $250K loss → ≈ $92,500 at 37%)

IRC §168(k)(1)(A); §179(b)

QBI Deduction (§199A)

Example ($200K profit → ≈ $30,700 deduction): — the naive math promises $40,000; the…

IRC §199A

Pass-Through Entity Tax (PTET)

Example ($100K state tax → ≈ $25,900 net)

IRS Notice 2020-75

C Corporation Strategies

Example ($500K retained): — the flat 21% costs $105,000 against about $138,000 on a single…

IRC §11(b); traps at IRC §531, §541

Entity Classification / Check-the-Box

The source card carries no dollar illustration — no dollar figure is claimed here. What the card…

Treas. Reg. §301.7701-3(a); exit cost under IRC §§331, 336

Partnership & LLC Structures

Example ($200K profit, 50/50): — the partnership pays nothing and the income is taxed once, but…

IRC §701; SE-tax exposure under IRC §1402(a)(13)

Disregarded Entity Planning

$0 — the source card is explicit: the tax change is exactly $0, by design. As a tax-saving…

Treas. Reg. §301.7701-3(b)(1)(ii)

Multi-Entity Structures

The assembly itself is tax-free (§721 into a multi-member LLC, §351 into a corporation you…

IRC §351(a); IRC §721

Accumulated Earnings Tax (§531)

Example (retain $1,000,000, no plan, no prior accumulated earnings): posture — after the…

IRC §531; reasonable needs under IRC §537 / Treas. Reg. §1.537-1, -2

Dividend Planning & Timing

Example ($100,000 qualified dividends): — as a joint filer's only income it owes $0 federal tax…

IRC §1(h)(11)

State Selection & Nexus Honesty

The paper move saves $0 against the real exposure: $200,000 of taxable sales into a state with a…

South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018); P.L.

86-272

State & Local Incentives

$1,000,000 of qualified Georgia film spend earns a 20% credit — $200,000 — and $300,000 with the…

O.C.G.A. §48-7-40.26 (pending confirmation)

Real Estate Professional Status

Log 1,200 of 2,000 working hours in real estate against 800 at a W-2 job (60% real estate) and a…

IRC §469(c)(7). (pending confirmation)

Real Estate Professional Status Through the Non-W-2 Spouse

The non-W-2 spouse logs 1,100 hours, no other job, clearing both §469(c)(7) gates; cost…

IRC §469(c)(7)(A)-(B)

Material Participation Tests

A $60,000 loss, you log 150 hours, your manager logs 200: the 100-hour test fails because…

Treas. Reg. §1.469-5T(a); rental baseline at IRC §469(c)(2), (c)(7)

§1031 Like-Kind Exchanges

Sell at $1,000,000 with a $400,000 gain, through a qualified intermediary, replacement…

IRC §1031(a)(1); related-party rule at IRC §1031(f)

Opportunity Zone Investments

A $500,000 gain rolled into a Qualified Opportunity Fund within 180 days is deferred (no tax…

IRC §1400Z-2(a)(1)(A); forced recognition at IRC §1400Z-2(b)(1)

Low-Income Housing Credit: The $25,000 Allowance

The $25,000 passive-activity allowance, translated into credits with no phaseout: at 37%, a…

IRC §42; allowance at IRC §469(i)(1)-(3)

Solo 401(k)

Example ($100K net earnings → ≈ $43,000 sheltered: ≈ $24,500 employee + ≈ $18,500 employer…

IRC §402(g)(1); §415(c)(1)(A) (limits as indexed, Notice 2025-67)

SEP-IRA

Example (sole proprietor, $200K profit → ≈ $37,000 deductible ≈ $8,900 at 24%, before the §199A…

IRC §408(k); IRC §402(h)(2)

SIMPLE IRA

Example ($60,000 salary → $17,000 deferred + 3% employer match of $1,800 = $18,800 sheltered; at…

IRC §408(p)(2)(A)(ii), (E)

Defined Benefit Plans

Example (a 55-year-old owner's actuary-computed contribution ≈ $200,000 deductible in one year…

IRC §415(b)(1)(A); funding under IRC §430

Cash Balance Plans

Example (a $150,000 annual pay credit for a 58-year-old owner, plus an interest credit — the…

IRC §414(j); IRC §411(a)(13); Treas. Reg. §1.411(b)(5)-1

§457(b): A Second Deferral Limit

Example ($24,500 deferred at 37% → $9,065 of federal tax deferred, on top of the 403(b); the…

IRC §457(b)(2), (3); limit at IRC §457(e)(15)

Roth Conversion Strategies

Example (convert $100,000 inside the 22% bracket, tax paid from outside funds → $22,000 now…

Treas. Reg. §1.408A-4, Q&A-7(a)

Self-Directed IRAs

Example (a $100,000 IRA buys a stranger's duplex — allowed, growth stays sheltered): — while the…

IRC §4975(c)(1); deemed distribution under IRC §408(e)(2)

Fiduciary Standards (Retirement Plans)

Example (a $2,000,000 plan, one unbenchmarked pricey fund — 0.50% a year of excess fees =…

ERISA §404(a)(1)(A)-(B); personal liability under ERISA §409

Nonqualified Deferred Compensation

Example (defer $200,000: taxed today at 37% federal plus 9.3% California = $92,600, versus paid…

IRC §409A(a)(2)-(4); FICA timing at IRC §3121(v)(2)

Net Unrealized Appreciation (NUA) on Employer Stock

Example (stock worth $500,000, plan cost basis $50,000: the NUA route taxes the basis as…

IRC §402(e)(4)(B), (D)

Research & Development Credit

Example ($500,000 of qualified research expenses — the base amount floored at 50% of that…

IRC §41(a)(1); IRC §41(c)(4)

Qualified Research: The Four-Part Test

Example ($200,000 spent testing three prototypes — permitted purpose, technological in nature, a…

IRC §41(d)(1)(A)-(C); cosmetic exclusion at IRC §41(d)(3)(B)

Work Opportunity Tax Credit (WOTC)

Example (a 2025 hire, $6,000 of first-year wages, reaching 400 hours → 40% = a $2,400 credit…

IRC §51

Energy Credits

Example (a $200,000 commercial solar project × 30% = a $60,000 credit under §48E — 30% with…

IRC §48E; IRC §179D; basis adjustment at IRC §50(c)(3)

Employee Retention Credit (ERC)

Example (a promoter pitches a "new" claim today): — there is no positive cash-flow line to rate…

IRC §6511 (refund deadlines)

Installment Sales

Example (sell at $1,000,000 with $600,000 of basis — a 40% gross-profit ratio — collect $200,000…

IRC §453(b)(1); related-party resale at IRC §453(e)

Captive Insurance

Example (the business pays $500,000 of actuarially sound premiums — deductible to the business…

IRC §831(b)

§83(b) Election on Restricted Stock

Example (100,000 shares at $0.10 — elect and you recognize $10,000 of ordinary income now, about…

IRC §83(b); sample form at Rev. Proc. 2012-29

§1244 Ordinary Loss on Small Business Stock

Example (invest $100,000 in original-issue stock of a qualifying small business corporation; it…

IRC §1244(a)-(b); qualification at IRC §1244(c)

Qualified Small Business Stock (§1202)

Example (a $3,000,000 gain on original-issue QSBS held 5+ years in a qualifying company…

IRC §1202 (exclusion tiers; active-business rules at §1202(e)(3))

Intangible Drilling Costs (IDC)

Example ($500,000 well, ~$350,000 intangible expensed in year one): ≈ $112,000 of illustrated…

IRC §263(c); Treas. Reg. §1.612-4(a)

Tangible Drilling Costs

Example (same $500,000 well: $100,000 pumping unit + $50,000 casing, capitalized as 7-year…

Treas. Reg. §1.612-4(c) (pending confirmation)

Cost Depletion

Example ($200,000 basis over 100,000 remaining barrels = $2/barrel; 10,000 barrels sold): a…

IRC §611(a); IRC §612; Treas. Reg. §1.611-2(a)

Percentage Depletion

Example (property grossing $300,000 → 15% = $45,000; year eight, basis fully recovered, still…

IRC §613A(c)(1)

Working Interest Exception

Example (two investors, $40,000 loss each, W-2 salary): for the direct holder — the loss offsets…

IRC §469(c)(3)(A)

Marginal Well Credit

Example (qualifying gas well, ~6,500 Mcf at the page's 2026 rate of $0.81/Mcf, Notice 2026-42)…

IRC §45I

Charitable Contributions (§170)

Example ($200,000 AGI, $10,000 gift): — 2026's new 0.5% floor takes the first $1,000, so $9,000…

IRC §170; non-itemizer deduction at IRC §170(p)

Donor-Advised Funds (DAFs)

Example ($15,000/yr given directly vs. $45,000 bunched into a DAF in year one, at $100,000 AGI)…

IRC §4966(d)(2); prohibited-benefit excise at IRC §4967

Charitable Remainder Trusts (CRTs)

Example ($500,000 of stock, $100,000 basis, into a CRT paying 5%): by nature — the $400,000 gain…

IRC §664; payout taxation under IRC §664(b)

Qualified Charitable Distributions (QCDs)

Example ($20,000 RMD): — taken normally, the distribution adds $20,000 of income (≈ $4,400 of…

IRC §408(d)(8)(A); 2026 cap of $111,000 per IRS Notice 2025-67

Conservation Easements

Example (the promoter pitch: $100,000 of relevant basis, a "four-times" $400,000 claim)…

IRC §170(h)(7)(A); base allowance at IRC §170(h)

Charitable Lead Trusts (CLTs)

Example ($1,000,000 funded; charity paid 7% — $70,000 a year for 20 years; 5.4% §7520 rate)…

IRC §170(f)(2)(B); valuation rate under IRC §7520(a)(2)

Private Foundations

Example ($2,000,000 foundation): — you get the command center and pay for it three ways: roughly…

IRC §4940(a) (excise tax); deduction limits at IRC §170(b)(1)(B), (D)

Revocable Living Trusts

Example ($2,000,000 estate through a revocable trust): as a tax strategy — the tax saved is…

IRC §§671-678; estate inclusion at IRC §2038

Irrevocable Life Insurance Trusts (ILITs)

Example ($2,000,000 policy, estate above the exemption): — up to $800,000 of estate tax avoided…

IRC §2042(2); three-year rule at IRC §2035(a)

Private Placement Life Insurance (PPLI)

Example ($5,000,000 at 8% for 20 years): — about $23.3M inside the wrapper vs. about $16.0M…

IRC §7702; IRC §817(h); MEC rules at IRC §7702A

Intentionally Defective Grantor Trusts (IDGTs)

Example ($10,000,000 business sold for a note at about 4% AFR): — growth above the note rate…

IRC §§671-678; Rev. Rul. 85-13; Rev.

Rul. 2004-64

Grantor Retained Annuity Trusts (GRATs)

Example ($5,000,000 into a 2-year GRAT, 8% growth vs. a hurdle of about 5.4%, September 2026)…

IRC §2702(a)(2)(A); hurdle rate under IRC §7520

Qualified Personal Residence Trusts (QPRTs)

Example ($3,000,000 home, 10-year QPRT): — the home is gifted at roughly $1.5-1.7 million of…

IRC §2702(a)(3)(A)(ii)

Family Limited Partnerships (FLPs)

Example ($10,000,000 of assets, genuine 30% combined discount proven by a qualified appraisal)…

IRC §2703(a); IRC §2704(b)(1); inclusion risk at IRC §2036(a)

Trust Decanting

As a tax-cash-flow play — the source card carries no dollar figure and claims no tax saving, and…

Texas Property Code §§112.071-112.087 (state law)

Annual Exclusion Optimization

Example (4 grandchildren × $19,000): — $76,000 a year out of the estate, zero tax, zero…

IRC §2503(b)(1)

Gift Splitting Elections

Example ($38,000 gift to one child): — with the split, $19,000 is treated as from each spouse…

IRC §2513(a)(1)-(2); filing rule at Treas. Reg. §25.6019-2

Lifetime Exemption Utilization

Example ($20,000,000 estate): — $5,000,000 sits exposed above the exemption, $2,000,000 of…

IRC §2010(c)(3)(A)

Portability Election Planning

$10,000,000 of unused exemption (DSUE) elected on a timely Form 706, plus the survivor's own…

IRC §2010(c)(2), (c)(4), (c)(5)(A); late relief at Rev. Proc. 2022-32

Generation-Skipping Tax Planning

Example ($15,000,000 dynasty trust): — with GST exemption properly allocated, the trust…

IRC §2601; skip-person rules at IRC §2613(a)(2), §2651(e)

§645 Elections

No election means two returns, two deadlines, double the accounting fees; with the election, one…

IRC §645

Basis Step-Up Documentation

Example (stock bought for $200,000, worth $1,000,000 at death): — heirs' basis is $1,000,000 and…

IRC §1014(a)(1); exceptions at IRC §1014(c), (e)

Asset vs. Stock Purchase Analysis

Example ($10,000,000 deal): — the structure pays one side by charging the other. Asset deal: the…

IRC §338; IRC §1060(a); goodwill amortization at IRC §197

Purchase Price Allocation (§1060)

Example ($10,000,000 asset deal, read from the buyer's chair): — $4,000,000 allocated to…

IRC §1060; reporting on Form 8594

§338(h)(10) Elections

Example ($10,000,000 for an S corporation, buyer's chair): — the joint election makes the deal…

IRC §338(h)(10); basis allocation at Treas. Reg. §1.338-6

Earnout Tax Treatment

Example ($8,000,000 at closing plus up to a $4,000,000 earnout, $2,000,000 basis, $12,000,000…

IRC §453(c); electing out at IRC §453(d); interest charge at IRC §453A

Rollover Equity Structures

Example ($10,000,000 deal, $1,000,000 basis, $9,000,000 of gain): — take $7,000,000 of cash and…

IRC §351(a); IRC §721

Tax-Free Reorganizations (§368)

Example ($10,000,000 company acquired for $10,000,000 of the buyer's voting stock): — done…

IRC §368(a)(1)(A)-(G)

Tax Attribute Preservation (§382 / NOL Limits)

Example ($20,000,000 of NOLs in a company valued at $10,000,000): at face value — at the page's…

IRC §382

ESOP Rollover (§1042)

Example (sell $5,000,000 of stock with a $500,000 basis, reinvest the full $5,000,000 in…

IRC §1042

Estate Tax Deferral (§6166)

Example ($3,000,000 of estate tax): by definition — §6166 doesn't cut the tax by a dollar; it…

IRC §6166; interest under IRC §6601(j)

Estate Stock Redemption (§303)

Example ($400,000 out of the company): — pulled as a dividend, the full $400,000 is taxable…

IRC §303; aggregation at IRC §303(b)(2)(B)

Foreign Tax Credit Optimization

Example (U.S. C corp pays $100,000 of foreign tax on $300,000 of foreign-source income): — the…

IRC §901; limitation at IRC §904 (baskets under §904(d))

§962 Election

Example ($100,000 net CFC tested income inclusion): — $37,000 at the 37% individual rate with no…

IRC §962(a)(1)-(2); distribution rule at IRC §962(d)

PFIC Elections (QEF / Mark-to-Market)

Example ($50,000 gain over five years): under the default the investor walked into — about…

IRC §1291; IRC §1295 / §1293; IRC §1296

Accountable Plan

$3,000 of home-office, phone and mileage costs reimbursed by the company: deductible to the…

Treas. Reg. §1.62-2; IRC §62(a)(2)(A)

Home Office

300 sq ft simplified = $1,500 (≈$360 at 24%), or actual-method share of home costs ($3,000 →…

IRC §280A(c)(1); Rev. Proc. 2013-13

Hire Your Kids

$16,100 of wages: deducted by the business, $0 income tax to the child, no payroll tax under 18…

IRC §3121(b)(3)(A); §73; §63(c)

Health Savings Account (Triple Play)

$8,750 family contribution: deducted now, grows tax-free, spent tax-free on medical (≈$2,100 at 24%)

IRC §223

Self-Employed Health Insurance

$12,000 of premiums deducted above the line (≈$2,880 at 24%)

IRC §162(l); Notice 2008-1

Heavy Vehicle (Over 6,000 lbs)

$120,000 SUV × 90% business = $108,000 year-one deduction (≈$34,560 at 32% now; recaptured as…

IRC §168(k); §280F(d)(5); §274(d)

Home Sale Exclusion

$500,000 of gain on your main home is excluded for a married couple ($250,000 single), so it is…

IRC §121

Give Appreciated Stock, Not Cash

$50,000 of stock with $10,000 basis given directly: $40,000 gain never taxed (≈$9,520) plus a…

IRC §170(e)(1); §170(b)(1)(C)

Tax-Loss Harvesting

$23,000 of harvested losses: $20,000 offsets long-term gains (≈$4,760 at the top 23.8% rate: 20%…

IRC §1211(b); §1212(b); §1091

Repairs vs. Improvements + De Minimis Safe Harbor

$15,000 of patch repairs, repainting and items under $2,500 expensed now instead of over 27.5–39…

Treas. Reg. §1.263(a)-1(f), -3(h)–(i); §1.162-3

Catch-Up Depreciation (Form 3115)

$40,000 of missed depreciation taken in one year through a method change (≈$9,600 at 24%)

IRC §446(e); §481(a); Rev. Proc. 2015-13; Rev.

Proc. 2025-23 (DCN 7)

Dependent Care Assistance ($7,500)

$7,500 of daycare paid pre-tax (≈$2,370 at 24% + 7.65%)

IRC §129 (as amended 2025)

Employer Student-Loan Repayment ($5,250)

$5,250 a year paid toward an employee's student loan, tax-free to them and deductible to the…

IRC §127(c)(1)(B) (made permanent 2025)

Car-Loan Interest Deduction

About $3,000 of first-year interest on a new U.S.-assembled car loan, deducted without itemizing…

IRC §163(h)(4) (2025 act)

SALT Itemizing ($40,400 Cap in 2026)

$14,000 of Texas property tax (fully deductible under the cap) + $20,000 mortgage interest…

IRC §164(b)(6)–(7) (2025 act)

Qualified Production Property (100% Expensing of Factory Buildings)

$4,000,000 production building (excluding land) expensed in year one instead of over 39 years…

IRC §168(n) (2025 act)

QSBS Stacking (Multiplying the Per-Taxpayer Cap)

Gifting founder shares to a separate non-grantor trust for each child: each trust claims its own…

IRC §1202(b)(1), (h)(2); non-grantor trusts

QSBS Rollover

$2,000,000 gain on QSBS held under 5 years rolled into new QSBS within 60 days: tax deferred…

IRC §1045

Opportunity Zones 2.0 (2027 Rules)

Gain invested in a QOF after Dec 31, 2026: tax deferred 5 years, 10% basis increase (30% rural)…

IRC §1400Z-2 (as amended 2025)

1031 into a DST, then UPREIT (§721)

$1,000,000 gain deferred into a Delaware statutory trust, later contributed to a REIT operating…

IRC §1031; §721; Rev. Rul. 2004-86

Spousal Lifetime Access Trust (SLAT)

$10,000,000 moved out of the estate while the spouse can still benefit; growth escapes 40%…

IRC §2511; §2036; §671–679

Trump Account Employer Contributions

Up to $2,500 per employee per year contributed tax-free to a child's account; deductible to the…

IRC §530A; §128 (2025 act)

Self-Rental: Building in a Separate LLC

Building moved into a separate LLC and leased back at fair rent: depreciation and cost…

Treas. Reg. §1.469-2(f)(6); §1.469-4(d)(1); §1.1411-4(g)(6); IRC §1239

Involuntary Conversion Deferral

$600,000 insurance gain on a destroyed building deferred by reinvesting within 2 years (3 for…

IRC §1033

Incentive Stock Options: AMT-Aware Exercise

Exercising in tranches sized under the AMT crossover so the spread later qualifies for long-term…

IRC §422; §56(b)(3)

Mega Backdoor Roth

Up to about $47,500 of after-tax 401(k) dollars ($72,000 limit less $24,500 deferrals and any…

IRC §402A(c)(4); §415(c) ($72,000 in 2026); §401(m)

Escape the 3.8% Net Investment Income Tax

$300,000 of rental income treated as non-passive trade or business income (REPS + 500-hour safe…

IRC §1411; Treas. Reg. §1.1411-4

Grantor Trust Swap Power

Swapping $2,000,000 of high-basis cash into the trust for low-basis stock before death, so the…

IRC §675(4)(C); §1014; Rev. Rul. 2008-22; Rev.

Rul. 2023-2

Upstream Basis Planning

Gift a low-basis asset to a parent; at the parent's death it steps up and passes back through a…

IRC §1014(a), (e); §2010

Qualified Improvement Property (15-Year + Bonus)

$300,000 interior build-out deducted in year one instead of over 15 years (≈$96,000 at 32% up…

IRC §168(e)(6); §168(k)

No Tax on Tips (§224)

$20,000 of qualified tips deducted (≈$4,400 at 22%)

IRC §224 (OBBBA §70201); 2025–2028

No Tax on Overtime (§225)

$10,000 overtime premium (the 'half' of time-and-a-half) deducted (≈$2,200 at 22%)

IRC §225 (OBBBA §70202); 2025–2028

Senior Deduction ($6,000 Each)

Two spouses 65+ = $12,000 extra deduction, itemizing or not (≈$2,640 at 22%)

IRC §151(d)(5)(C) (OBBBA §70103); 2025–2028

Child Tax Credit ($2,200)

Two children = $4,400 credit, dollar for dollar

IRC §24 (OBBBA §70104)

Child & Dependent Care Credit (Enhanced 2026)

$6,000 of care for two kids × 20%–50% = $1,200 to $3,000 credit

IRC §21 (as amended by OBBBA §70405)

Adoption Credit (Partly Refundable)

Up to $17,670 per child in 2026 for qualified costs (full amount for special-needs adoptions)…

IRC §23 (OBBBA §70402)

American Opportunity Credit

$4,000 of tuition → $2,500 credit per student, 40% refundable

IRC §25A(b)

529 Plans (K-12 Now $20,000)

$50,000 of growth withdrawn tax-free for school (≈$7,500 at 15%), plus any state deduction

IRC §529 (OBBBA §70413–70414)

529 Superfunding (Five-Year Gift)

$95,000 per donor ($190,000 a couple) out of the estate at once using five years of $19,000…

IRC §529(c)(2)(B); §2503(b)

529-to-Roth Rollover ($35,000)

$35,000 lifetime moves to the beneficiary's Roth IRA — no tax, no penalty

IRC §529(c)(3)(E) (SECURE 2.0 §126)

Custodial Roth IRA for Working Kids

$7,500 a year (2026 IRA limit) grows tax-free for 50+ years

IRC §408A; §219(b)

Spousal IRA

$7,500 deductible IRA for the non-working spouse (≈$1,650 at 22%)

IRC §219(c)

Head of Household Status

Bigger standard deduction and wider brackets than single — often $1,000–$2,000 a year

IRC §2(b)

Second-Home Mortgage Interest

$20,000 interest on a second home deducted (≈$6,400 at 32%)

IRC §163(h)(3) ($750,000 cap made permanent by OBBBA §70108)

Backdoor Roth IRA

$7,500 a year (×2 spouses) into Roth through a nondeductible IRA conversion — tax-free growth…

IRC §408A(c)(3); §408(d)(2) pro-rata rule

Super Catch-Up (Ages 60–63)

$11,250 catch-up instead of $8,000 in 2026 — $3,250 more deferred (≈$1,040 at 32%; the full…

IRC §414(v)(2)(E) (SECURE 2.0 §109)

Cross-Tested (New Comparability) Profit Sharing

$60,000 to the owner, a 5% gateway to staff (≈$21,000 at 35% deferred, before the staff…

Treas. Reg. §1.401(a)(4)-8

Hire Your Spouse to Double the 401(k)

Spouse defers $24,500 + profit sharing ≈ $30,000 (≈$9,600 at 32%)

IRC §402(g); §415(c)

Retirement Plan Startup Credits (§45E)

Startup costs credited up to $5,000 a year for 3 years ($250 × eligible non-HCEs, minimum $500)…

IRC §45E; IRC §45T (auto-enrollment)

Fully Insured Defined Benefit Plan (§412(e)(3))

$250,000 deductible contribution funded with annuities (≈$92,500 at 37%); taxed when paid out

IRC §412(e)(3); Rev. Rul. 2004-20

S-Corp ESOP (Tax-Exempt Owner)

A 100% ESOP-owned S-corp's profits flow to a tax-exempt trust — no federal income tax at the…

IRC §1361(c)(6); §512(e)(3); §409(p)

QLAC (Deferring RMDs to 85)

About $210,000 moved into a longevity annuity drops out of RMDs until age 85 (≈$1,900/yr at 24%)

IRC §401(a)(9); Treas. Reg. §1.401(a)(9)-6

Inherited IRA 10-Year Planning

$1M inherited IRA drawn evenly over 10 years instead of a lump sum: income stays in the 24%–32%…

IRC §401(a)(9)(H); Treas. Reg. §1.401(a)(9)-5

Cafeteria Plan (§125)

$5,000 of premiums and FSA dollars pre-tax (≈$1,580 at 24% + 7.65%)

IRC §125

Spouse Employee + §105 Medical Plan

$10,000 of family medical costs deducted by the business, off the SE base (≈$2,400 at 24% plus…

IRC §105(b); §106

QSEHRA (Small-Employer HRA)

$10,000 of family premiums reimbursed tax-free instead of a taxable raise (≈$765 employer…

IRC §9831(d); §106(g)

Long-Term-Care Premiums Through a C-Corp

$5,000 LTC premium deducted 100% by the C-corp, $0 to the owner (≈$1,050 at 21%)

IRC §106; §213(d)(10); §7702B

Split-Dollar Life Insurance

Employer advances premiums as a loan or economic-benefit arrangement; the death benefit can stay…

Treas. Reg. §1.61-22; §1.7872-15

Employer Childcare Credit (§45F, 40–50%)

$200,000 of 2026 childcare costs → $100,000 credit for a small business (50%; cap $600,000…

IRC §45F (as amended by P.L. 119-21)

Paid Family & Medical Leave Credit (§45S)

12.5%–25% of leave wages (or of paid-leave insurance premiums) for employees earning under about…

IRC §45S (made permanent by P.L. 119-21); §280C(a)

FICA Tip Credit (§45B)

$400,000 of tips above the minimum-wage top-up × 7.65% ≈ $30,600 credit; the FICA deduction is…

IRC §45B (as amended by P.L. 119-21); §45B(c)

R&D Payroll-Tax Offset for Startups

Research credit up to $500,000 a year applied to employer payroll tax from the quarter after the…

IRC §41(h); §3111(f)

Domestic R&E Expensing Restored (§174A)

$200,000 of U.S. R&E deducted in year one instead of over 5 years: $180,000 more deduction now…

IRC §174A (P.L. 119-21); Rev. Proc.

2025-28; §280C(c)

Business Interest: EBITDA Limit Restored (§163(j))

Adding back depreciation lets $200,000 more interest be deducted now instead of carried forward…

IRC §163(j) (OBBBA §70303); §163(j)(7)(B) election

Startup & Organizational Costs

$5,000 of startup + $5,000 of organizational costs deducted at once (≈$2,400 at 24%)

IRC §195; §248; §709

Business Travel (Primary-Purpose Rule)

$6,000 of airfare and lodging deducted (≈$1,440 at 24%)

IRC §162(a)(2); §274(c), (d); Treas. Reg. §1.162-2

Cash Method for Growing Businesses

$100,000 of December receivables taxed next year (≈$24,000 deferred at 24%)

IRC §448(c); §471(c); §263A(i)

§199A Aggregation Election

Wages in one entity unlock the QBI deduction in another: $20,000 more deduction (≈$7,000 at 35%)

IRC §199A (permanent under P.L. 119-21); Treas. Reg. §1.199A-4

Charitable Inventory Donations (Enhanced)

Inventory with $50,000 basis and $100,000 value → $75,000 contribution; with $1M taxable income…

IRC §170(e)(3); §170(e)(3)(C)

Late S-Election Relief

S status granted back to the intended date — S-corp payroll savings for the missed year hold…

Rev. Proc. 2013-30

Voting / Nonvoting S-Corp Recapitalization

Nonvoting shares (e.g., 99%) gifted at an appraisal-supported discount (often 20–35%) while the…

IRC §1361(c)(4); Treas. Reg. §1.1361-1(l)

S-Corp Debt Basis (Direct Shareholder Loans)

$100,000 lent directly to the company frees $100,000 of losses (≈$32,000 at 32%)

IRC §1366(d); Treas. Reg. §1.1366-2

Partnership Special Allocations

Depreciation allocated to the partner who can use it — $200,000 to the 37% partner (≈$74,000)

IRC §704(b); Treas. Reg. §1.704-1(b)(2)

§754 Basis Step-Up Election

Inherited or purchased interest: $500,000 inside step-up → new depreciation for the buyer or heir

IRC §754; §743(b); §734(b)

Move an S-Corp Business Into a C-Corp to Start the QSBS Clock

Only newly issued C-corp stock qualifies (old S shares never do); for stock issued after July…

IRC §1202 (as amended by P.L. 119-21); §1202(i); §351; §368(a)(1)(F)

State Residency Change

$600,000 income × 9% state rate = about $54,000 a year no longer paid

State domicile statutes (e.g., Cal. Rev. & Tax. Code §17014)

Puerto Rico Residence (§933 / Act 60)

Puerto Rico-source income excluded from U.S. tax; resident-investor decrees: 0% on post-move PR…

IRC §933; §937

Rental Real Estate $25,000 Allowance

$25,000 rental loss against wages (≈$5,500 at 22%)

IRC §469(i)

Release Suspended Losses on Sale (§469(g))

$120,000 suspended losses freed in the year of sale (≈$38,400 at 32%)

IRC §469(g)(1)(A)

Rental Grouping Election

All rentals treated as one activity, so hours across properties combine for material…

Treas. Reg. §1.469-9(g)

Partial Disposition Election

$8,000 of undepreciated basis in the old roof written off now instead of over the remaining…

Treas. Reg. §1.168(i)-8

Reverse 1031 Exchange

Replacement parked with an exchange accommodation titleholder; $500,000 gain deferred, not…

IRC §1031; Rev. Proc. 2000-37; Rev.

Proc. 2004-51

Home Sale + 1031 Combination

Married couple: $500,000 gain excluded (≈$119,000 at the top 23.8% rate: 20% + 3.8% net…

IRC §121; §1031; Rev. Proc. 2005-14

Partial Home Sale Exclusion

Married couple moved after 12 months for a job: 50% of $500,000 = $250,000 of gain excluded…

IRC §121(c); Treas. Reg. §1.121-3

Rental Conversion: Keep the Home-Sale Window

Married couple sells within 3 years of moving out: $300,000 gain excluded (≈$45,000 at 15%)…

IRC §121(b)(5); §121(d)(6)

Vacation Home Mixed-Use Rule

Personal use under 14 days / 10% of rental days → treated as a rental (losses still subject to…

IRC §280A(d), (e), (g); §469

Dealer vs. Investor Split (Development S-Corp)

Appreciation up to the sale to your development S-corp stays capital gain; only later…

IRC §1221; Bramblett v. Commissioner, 960 F.2d 526 (5th Cir. 1992)

Historic Rehabilitation Credit

$1M of qualified rehab → $200,000 credit, 4% a year over 5 years (basis reduced by the credit)

IRC §47

New Markets Tax Credit

$1M qualified equity investment → $390,000 of credits over 7 years (5% × 3, 6% × 4); the…

IRC §45D (made permanent by OBBBA)

Farmland Sale to a Farmer: Tax in Four Installments

$1M gain: tax paid in 4 equal annual installments instead of up front

IRC §1062 (OBBBA §70437)

Non-Itemizer Charitable Deduction ($1,000 / $2,000)

$2,000 of cash gifts deducted on top of the standard deduction, married (≈$480 at 24%)

IRC §170(p) (OBBBA §70424); from 2026

Charitable Gift Annuity

$100,000 of appreciated stock at about age 75 → lifetime payments, about a $40,000 deduction if…

IRC §170; §1011(b); Treas. Reg. §1.1011-2(a)(4); §72; §514(c)(5)

Bargain Sale to Charity

$1M property sold to charity for $400,000: $600,000 deduction (≈$192,000 at 32%, usable up to…

IRC §1011(b); §170(e)

Give the Business Interest Before the Sale

$1M of zero-basis shares given well before the deal: $238,000 of gain (23.8%) never taxed to you…

IRC §170; assignment-of-income doctrine (Hoensheid, T.C. Memo. 2023-34)

Leave the IRA to Charity, Other Assets to Heirs

$500,000 IRA to charity pays $0 income tax; heirs take stepped-up taxable assets instead…

IRC §691; §2055

Flip CRUT for Illiquid Assets

Pays net income until the asset sells, then flips to a fixed unitrust; $900,000 gain not taxed…

IRC §664; Treas. Reg. §1.664-3(a)(1)(i)(c)–(d)

Direct Tuition & Medical Payments (Unlimited)

$60,000 of tuition paid straight to the school: no gift tax, no exemption and no $19,000 annual…

IRC §2503(e)

Qualified Disclaimer

A surviving spouse disclaims $2M within 9 months of the death so it passes to a bypass trust…

IRC §2518

QTIP Trust

Marital deduction at the first death + control of who inherits at the second

IRC §2056(b)(7)

Credit-Shelter (Bypass) Trust

$15M sheltered at the first death; its growth stays out of the survivor's estate

IRC §2010; §2056

Special-Use Valuation for Farms & Businesses

Farmland valued at farm use, not development value — estate value reduced up to the…

IRC §2032A

Self-Cancelling Installment Note (SCIN)

Business sold to the kids; unpaid balance cancels at death and stays out of the estate — but the…

IRC §453; §453B(f); §2033; Estate of Moss, 74 T.C. 1239 (1980)

Incomplete-Gift Nongrantor Trust (ING)

$5M gain taxed in a no-tax trust state instead of a 9% state (≈$450,000 state tax)

IRC §§671–677; §2511; PLRs 201636027–201636032, 201653001–201653009

Trust 65-Day Distribution Rule

$50,000 of trust income distributed to beneficiaries in the 22% bracket instead of 37% (≈$7,500)

IRC §663(b)

F Reorganization Before a Sale

Buyer gets an asset step-up (worth more to them) and protection from S-election defects; seller…

IRC §368(a)(1)(F); Rev. Rul. 2008-18

Tax-Free Spin-Off (§355)

Two businesses split with no corporate or shareholder tax

IRC §355

Personal Goodwill Sale

$2M of goodwill sold by the owner, not the C-corp: the 21% corporate layer is avoided — net…

Martin Ice Cream Co., 110 T.C. 189; Howard v. U.S. (contrast)

§83(i) Deferral on Startup Equity

$200,000 of vested stock: income tax deferred up to 5 years instead of paid with no cash to sell

IRC §83(i)

Employee Stock Purchase Plan Qualifying Sale

15% discount on $25,000 of stock; holding 2 years/1 year turns most of the gain into capital gain

IRC §423; §421

0% Capital-Gains Harvesting

$40,000 of gains sold and rebought while taxable income stays under the 2026 0% ceiling (about…

IRC §1(h)(1)(B)

Section 1256 Contracts (60/40)

$100,000 trading gain taxed at a blended 26.8% instead of 37% (≈$10,200)

IRC §1256

Exchange Funds (Diversify Without Selling)

$5M concentrated stock pooled into a diversified fund; $1M+ of gain tax deferred

IRC §721(b); §704(c)(1)(B); §737; Treas. Reg. §1.351-1(c)

Tax-Exempt Municipal Bonds

$1M at a 4% muni yield = $40,000 tax-free (taxable-equivalent ≈6.3% at 37%)

IRC §103; §1411(c)

Worthless Securities & Debts

$50,000 worthless private stock deducted (≈$12,000 as an ordinary loss under §1244, or capital…

IRC §165(g); §166

Interest Tracing (Make the Loan Deductible)

$200,000 borrowed and used for business or investment: $14,000 of interest deductible (≈$4,480…

Treas. Reg. §1.163-8T; Notice 89-35