Repaid income (clawed-back bonus, rescinded settlement)? Take the BETTER of a deduction or a credit for prior-year tax.
IRC §1341 applies when you must repay in a later year income you previously included under a claim of right, and the repayment exceeds $3,000. You can either (a) deduct the repayment this year, OR (b) reduce this year's tax by the amount of tax the income actually cost you in the prior year — whichever leaves less tax. Common: clawed-back signing bonuses, rescinded stock comp, overpaid commissions, Ponzi restitution. Frequently overlooked; requires manual computation.
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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.