Elect credit or deduction annually — often worth 15–37% each year in swings.
US taxpayers with foreign-source income can elect ANNUALLY to treat foreign taxes as a §901 credit (dollar-for-dollar against US tax, high-value) or a §164 deduction (against income only). Most preparers default to the credit — but in low-foreign-income or FTC-limitation years, the deduction wins. Sophisticated planners model both scenarios every year, plus §904 basket sourcing and carryforward optimization.
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Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.