Bridge Tolls & Capital Gains Taxes??

Bridge tolls are usage taxes. You pay the toll when you use it. Seems fair.

In the San Francisco Bay area, tolls are collected on bridges in one direction only. If you travel clock-wise around the SF Bay over these bridges, you will pay no toll.

No one is compelled to travel in a direction to pay the highest toll.

Likewise, the IRS does not force you to arrange your affairs to pay the highest tax.

It’s only when you have a “taxable event” that a tax consequence is created. For example, if you withdraw money from your 401k or IRA, that is a taxable event.

Furthermore, it’s how you structure your affairs (personal and business) that dictates the amount of taxation (think Corp, LLC, S-Corp, etc).

Though I’m not a tax attorney, I have personally filed 1040 tax returns for 40+ years. And yet it was only last year that I found out about filing a 1041. If qualified to do so, you may enjoy significant tax advantages over your current situation. Just one of my clients saved over $500,000 on their 2022 tax bill.

What has your CPA or tax consultant told you a 1041?

Curious? Book a strategy session with me and download your free Executive Summary: https://calendly.com/southard/ultimate-trust