Tax Strategy

Imagine this: your investment account shows little to no growth, or even a loss, yet you receive a tax bill for capital gains. That’s not a mistake. It's what many investors experience in what’s commonly referred to as the “mutual fund trap.” At RT3 Business Solutions, we view this through a compliance and financial governance lens. This isn’t a loophole - it’s the direct result of how mutual funds are structured under U.S. tax law. What Is the Mutual Fund Trap? The mutual fu

Understanding the Section 121 Home Sale Exclusion Selling your home can trigger a large capital gain if the property has appreciated over time. Fortunately, the tax code provides a valuable benefit that allows many homeowners to exclude a significant portion of that gain from taxation. Under Section 121 of the Internal Revenue Code, taxpayers may exclude up to $250,000 of gain from the sale of a primary residence, or $500,000 for married couples filing jointly, if certain req

Periods of market volatility often result in unrealized investment losses. Under current federal tax law, realized capital losses may affect how capital gains and certain income are reported. This framework is commonly referred to as tax-loss harvesting. At RT3 Business Solutions, we approach this topic from a compliance and reporting perspective. Below is a technical overview of how capital losses are treated under the Internal Revenue Code (IRC), including limitations and r

Most tax strategies are built to solve this year’s problem. This one is built to change the next 20. Trump Sec. 530A accounts introduce a structured way to begin wealth-building early, with the potential for coordinated contributions from families, employers, nonprofits, and even government programs. For RT3 clients, this is not just another account option. It is a long-term planning opportunity that shifts the conversation from annual tax savings to generational outcomes. Th