Tax Chats

Send us a textLyrics by Scott DyrengSung by Scott Dyreng and Three of Dyreng's DeductionsLyricsTax Advice, Tax AdviceSo many options confuse me.Roth I R A401-KWhich is the one that best suits me?Pay my tax now or pay when I am oldMaybe not pay foreverTax Advice, Tax AdviceHelp me choose which is better Pay the Price, For the AdviceThat will help me choose wisely.L L P?S-Corp or C?Which is the one that best suits me?Pay the tax twice or pay only one time?Claim QBI deductionsPay the Price, For the AdviceThat will help me choose wisely! 

Send us a textScott and Jeff are joined by Brian Mittendorf from THE Ohio State University to discuss not-for-profit entities. We discuss the recent creation of Horns with Heart, a not-for-profit entity recently created to pursue charitable causes using the Name, Image, and Likeness (NIL) of offensive lineman for the University of Texas football team. If this arrangement proves to be legitimate, not-for-profit entities could proliferate as a way to facilitate NIL deals and pay college football players, while allowing donors to make tax deductible contributions to their favorite football players.

Send us a textJeff describes what taxes have to do with Christmas. Mary and Joseph went to Bethlehem to be taxed (or maybe to be counted, so they could be taxed). 

Send us a textAway to pay Taxes (to the tune of Away in the Manger)Lyrics by Jeff Hoopes, Sung by Stacey HoopesOh Joseph and MaryThey were there for a taskThey came to the cityTo pay their taxBut as they remitted The tax on their worthOh Mary, a virginShe had to give birth They went to the cityBy Caesa­r’s decreeAs taxes touched JosephThey affect you and meWhen we give birthand when we die How much we work And what car we buy  For every decisionWe weigh how we actBy counting the costAnd we do it post-tax The pros and the consIn dollars and centsWe consider the taxesBefore we commence

Send us a textScott and Jeff discuss the OECD's Base Erosion and Profit Shifting (BEPS) project with Tom Neubig, a former Economist with the OECD. We answer basic questions about the OECD, BEPS, Pillar One and Pillar Two, which includes the proposed global minimum tax. The project is designed to stop the "race to the bottom" and to prevent large multinational companies from shifting their income to low-tax jurisdictions like tax havens. We also briefly discuss how country by country reporting will help with analysis after implementation.

Send us a textIn a recent episode of Tax Chats, Scott and Jeff had a little disagreement over a potential downside of tax loss harvesting. In this short, Jeff summarizes his argument that in tax loss harvesting, you should not delude yourself into thinking there is something special about the stock you hold.  You should not decide not to tax loss harvest because you might miss out on a stock going up in value--don't have tax loss harvesting FOMO.

Send us a textScott describes why it is so difficult to tax giant multinational companies.

Send us a textJeff and Scott discuss how to legally reduce or avoid paying capital gains taxes. We use Satya Nadella's recent sale of half his stake in Microsoft as an example. To reduce the capital gains tax burden, one can:Change the timing of capital gain incomesell before a new tax is imposed, or after an old tax is retiredwait to sell until capital gain becomes "long term," currently after 1 yearwait to sell to take advantage of the power of deferralExampleshttps://www.journals.uchicago.edu/doi/abs/10.17310/ntj.2015.3.02 https://tax.unc.edu/index.php/news-media/should-you-sell-stock-before-president-biden-raises-the-capital-gains-tax-rate/ Change jurisdictionsMove to Texas, Florida, Wyoming, etc.Hold until death to take advantage of the "step-up" in basis. Inheritance, Estates and the Step-Up in Basis Rule - WSJDonate appreciated assets to charityCharity gets assets at their fair market valueDonor does not pay capital gains taxDonor gets charitable contribution deduction for full market value if itemizes on personal tax returnTax loss harvesting Sell assets that have losses to offset assets that have gains.Invest in Opportunity zones

Send us a textJeff explains how it should never be the goal to pay nothing in taxes, but, rather, as far as your financial life goes, to maximize your after-tax income.

Send us a textScott discusses whether domestic companies pay more tax than multinational companies. The episode addresses a commonly held belief that domestic firms are at a tax-based cost disadvantage. An example would be this Op-Ed, published by Bloomberg.