#tax-planning
Tax Planning
Strategic tax planning to minimize liability and maximize savings
The Section 199A Rental Real Estate Safe Harbor: A Guide for Schedule E Landlords
Rev. Proc. 2019-38 lets landlords claim the 20% QBI deduction if a rental enterprise logs 250+ hours of rental services a year with contemporaneous records and a signed election. Triple net leases and personal-use property are excluded.
Section 302 Stock Redemptions: Sale vs. Dividend Treatment in Closely-Held C Corporations
A practical guide to Section 302 stock redemptions in closely-held C corporations — when a buyback gets capital gain treatment versus dividend treatment, how Section 318 family attribution disqualifies most family redemptions, and how the four 302(b) tests plus the 302(c)(2) waiver preserve sale treatment.
Section 302 Stock Redemption: How Closely-Held C Corporations Avoid Surprise Dividend Treatment
Section 302 of the Internal Revenue Code decides whether a closely-held C corporation's stock redemption is taxed as a capital sale or a full-amount dividend. This guide explains the three Section 302(b) tests, the Section 318 attribution traps that ensnare family-owned companies, the 10-year family-attribution waiver, and the partial-liquidation safe harbor under Section 302(b)(4).
Section 382: Why Acquirers Lose a Target's Net Operating Losses
Section 382 caps how fast an acquirer can use a target's net operating losses after an ownership change — annual limit equals the loss corporation's equity value times the long-term tax-exempt rate (about 3.58% in early 2026). Here is what triggers it and the legitimate workarounds.
Section 461(h) Economic Performance and the Recurring Item Exception: When Accrual-Basis Liabilities Are Actually Deductible
Section 461(h) layers an economic performance test on top of the all-events test, so accrual-basis taxpayers cannot deduct a liability until the underlying activity actually happens. The recurring item exception accelerates deductions for predictable expenses when economic performance occurs within 8½ months of year-end and four specific conditions are met.
Section 6603 Deposits: Stop IRS Interest on Disputed Tax Without Giving Up Appeal Rights
A Section 6603 deposit freezes IRS underpayment interest on contested tax while preserving your appeal, Tax Court, and withdrawal rights. This guide covers the written designation under Rev. Proc. 2005-18, when a deposit beats a payment, LIFO withdrawal mechanics, and the procedural traps that turn planned deposits into accidental payments.
Section 6603 Deposits: Stop IRS Interest Without Conceding the Audit
A Section 6603 deposit halts interest on a disputed IRS liability without paying the tax, conceding the position, or forfeiting Tax Court access. Revenue Procedure 2005-18 spells out the mechanics—a written designation that names the tax, year, amount, and basis for disputability.
Bookkeeping for Short-Term Rental Hosts: Schedule E vs. Schedule C, the 7-Day Average Stay Rule, and Material Participation
How Airbnb and Vrbo hosts classify income on Schedule E vs. Schedule C, calculate the 7-day average stay, and document material participation to unlock non-passive losses against W-2 wages.
Solo 401(k) vs. SEP-IRA in 2026: Picking the Self-Employed Retirement Plan That Actually Shelters the Most Income
A 2026 comparison of solo 401(k) and SEP-IRA plans for the self-employed, with contribution math at $60K, $120K, and $300K of net income, SECURE 2.0 Roth catch-up and super catch-up rules, setup deadlines, and a decision framework for picking the plan that shelters the most income.
ABLE Accounts in 2026: How Section 529A Lets People With Disabilities Save $19,000 a Year Tax-Free Without Losing SSI or Medicaid
A 2026 guide to ABLE accounts under IRC Section 529A — the new age-46 eligibility cutoff that makes 6 million more Americans (including 1 million veterans) eligible, the $19,000 annual contribution cap, the $100,000 SSI shelter, the unlimited Medicaid shelter, qualified disability expenses, the ABLE to Work multiplier up to $34,650, and how to avoid Medicaid clawback at death.
The 2026 Adoption Tax Credit: Form 8839, the Refundable $5,120, and the Five-Year Carryforward
For 2026, the federal Adoption Tax Credit is worth up to $17,670 per child, with $5,120 now refundable. A field guide to Form 8839, qualified expenses, the special-needs rule, failed adoptions, the MAGI phase-out, and the five-year carryforward.
Adoption Tax Credit Under Section 23 in 2026: Claiming Up to $17,670 on Form 8839 for Domestic, Foreign, Special Needs, and Failed Adoptions
For tax year 2026, the federal Adoption Tax Credit caps at $17,670 per eligible child, with up to $5,120 refundable and a five-year carryforward on the nonrefundable remainder. This guide explains Form 8839, the timing rules for domestic, foreign, special needs, and failed adoptions, MAGI phase-out between $265,080 and $305,080, and how to coordinate with employer-provided adoption assistance under Section 137.