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Writer's pictureAustinTaxCPAs

The Laws of Tax Planning

Updated: Nov 22, 2022

Stolen from the Great Peter J Reilly, CPA


1) It Is What It Is. Deal With It.

The tax code is illogical.




2) Sometimes It's Better To Just Pay The Tax

If you are sick of being a landlord, then don't do a 1031 exchange to defer your tax bill. Pay the tax and move on.



3) Any Clever Idea That Pops Into Your Head Probably Has a Corresponding Rule That Makes It Not Work.



4) Execution Isn't Everything But It's A Lot.



5) A Tax Plan That Ignores AMT or SALT Is Not Much of A Tax Plan

Alternative Minimum Tax (AMT) lost most of its bite of the 2018 Tax Cuts and Jobs Act, but is set to kick back in 2025. State taxes also carry some bite.




6) Don't Do the Math in Your Head



7) Read the IRS Instructions



8) Both Before and After Thinking Outside The Box Take a Good Look Inside The Box



9) Tell the Preparer What The Plan Is




10) Pigs Get Fat, Hogs Get Slaughtered




12) When An Idea Makes You Think of a Seinfeld Episode, It Is Not Going to End Well



13) Being Right Without Substantiation Can Be As Bad As Being Wrong



14) Don't Be Last Minute Louie



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