Strategy library
Plain-English overviews of tax strategies, with the IRS scrutiny level for each and the sponsors and advisors who list them. Education only.
Charitable Giving
Strategies built around gifts to charity or conservation.
Charitable Remainder Trusts
A trust pays you income for years, then the remainder goes to charity. It can spread out the tax on a large gain.
- Typical userHighly appreciated assets, charitable intent
- IRS scrutinyYellow
- Sponsors1
Charitable Trust Annuity Step-Ups
A charitable annuity trust paired with an annuity, marketed to reset asset basis. Shown so you can recognize it.
- Typical userAwareness only - an IRS-warned arrangement
- IRS scrutinyRed
- Sponsors0
Donor-Advised Funds
Give cash or appreciated securities to a sponsoring charity account, take the deduction now, and recommend grants over time.
- Typical userItemizers who give to charity
- IRS scrutinyGreen
- Sponsors4
Syndicated Conservation Easements
Investors buy into a partnership that donates a land easement and claims a deduction far above what they invested.
- Typical userAwareness only - an IRS listed transaction
- IRS scrutinyRed
- Sponsors2
Direct Conservation Easements
A landowner donates a permanent restriction on land to a qualified conservation group and may claim a charitable deduction.
- Typical userLandowners with qualifying land
- IRS scrutinyOrange
- Sponsors0
Qualified Charitable Distributions
Give directly from an IRA to charity so the amount is excluded from income and can count toward required distributions.
- Typical userIRA owners age 70½ or older
- IRS scrutinyGreen
- Sponsors0
Energy & Tax Credits
Federal and state credits for clean energy and conservation.
State Conservation Credits
Some states, such as Colorado and Virginia, issue transferable tax credits for conservation easements.
- Typical userResidents of states that issue them
- IRS scrutinyYellow
- Sponsors0
Solar Investment Credits
A federal credit under section 48E for directly owning qualifying clean-electricity property such as solar.
- Typical userOwners of qualifying solar projects
- IRS scrutinyOrange
- Sponsors8
Purchased Energy Credits
Buying transferable clean-energy credits from a project owner under section 6418 to offset your own federal tax.
- Typical userTaxpayers with large tax bills
- IRS scrutinyYellow
- Sponsors3
Real Estate & Land
Property exchanges, depreciation and farmland treatment.
Like-Kind Exchanges
Under section 1031, swap investment or business real estate for similar property and defer the tax on the gain.
- Typical userInvestors swapping real estate
- IRS scrutinyGreen
- Sponsors2
Accelerated Depreciation
Cost segregation and bonus depreciation speed up deductions on property, which can lower taxable income in early years.
- Typical userOwners of business or rental property
- IRS scrutinyYellow
- Sponsors6
Farmland Tax Treatment
State agricultural valuation lowers property tax, and the section 1062 election can spread tax on a farmland sale.
- Typical userFarmland and open-space owners
- IRS scrutinyGreen/Yellow
- Sponsors2
Short-Term Rental Losses
Rentals with average stays of seven days or less may be treated as non-passive if the owner materially participates.
- Typical userOwners of vacation or short-stay rentals
- IRS scrutinyYellow
- Sponsors0
Gains & Business Sales
Ways people plan around a large gain or a business sale.
Monetized Installment Sales
An installment sale paired with a loan to get cash up front while deferring the tax. Shown so you can recognize it.
- Typical userAwareness only - an IRS-warned arrangement
- IRS scrutinyRed
- Sponsors0
Qualified Small Business Stock (QSBS)
Section 1202 may let you exclude part or all of the gain when selling stock in a qualifying small business.
- Typical userFounders and early investors
- IRS scrutinyGreen/Yellow
- Sponsors1
Opportunity Zone Investments
Reinvest a gain in a qualified opportunity fund to defer tax on it, with possible benefits on later growth.
- Typical userInvestors with a recent capital gain
- IRS scrutinyYellow
- Sponsors3
Tax-Loss Harvesting
Sell investments at a loss to offset gains, subject to the wash-sale rules.
- Typical userInvestors with taxable brokerage accounts
- IRS scrutinyGreen
- Sponsors0
Income Tax Planning
Planning around annual income tax limits and elections.
State Tax Cap Planning (SALT)
Planning around the federal cap on state and local tax deductions, including pass-through entity tax elections.
- Typical userHigh earners in high-tax states
- IRS scrutinyGreen
- Sponsors0
Roth Conversions
Move pre-tax retirement money to a Roth account, paying tax now for tax-free growth and withdrawals later.
- Typical userSavers expecting higher future tax rates
- IRS scrutinyGreen
- Sponsors0
Business & Retirement Planning
Plans and credits for business owners and retirement savings.
Cash Balance Plans
A defined-benefit style retirement plan that lets owners fund much larger deductible contributions than a 401(k) alone.
- Typical userOwners with high, steady profits
- IRS scrutinyGreen
- Sponsors0
Research and Development Credits
Section 41 credits for qualifying research spending, with detailed IRS claim requirements on Form 6765.
- Typical userCompanies developing products or processes
- IRS scrutinyYellow
- Sponsors0
Micro-Captive Insurance
A small company's own insurer under section 831(b); certain arrangements must be disclosed to the IRS.
- Typical userClosely held businesses with insurable risks
- IRS scrutinyOrange
- Sponsors0