#27 Love Finance #27

  Tax-Efficient Ways to Transfer S-Corp Shares Upon Divorce If you’re reading this, you’re probably either a small business owner going through a tough split—or advising one. And I get it. Divorce is hard enough without Uncle Sam lurking in the shadows. But when S-Corp shares are on the table, you’ve got a double whammy: relationship stress meets tax code complexity. Fortunately, there are smart, tax-efficient ways to navigate this terrain without triggering unnecessary IRS trouble. This isn’t just about saving money. It’s about preserving your business, your peace of mind, and your post-divorce future. Let’s dive in, step by step. 📌 Table of Contents 1. The IRS Rules on Divorce and S-Corp Shares 2. Using Section 1041 to Your Advantage 3. Avoiding S-Corp Qualification Pitfalls 4. Leveraging QSSTs and ESBTs Post-Divorce 5. Planning for Valuation and Control Issues 6. Final Thoughts and Strategic Tips 1. The IRS Rules on Divorce and S-Corp Shares Let’...

  Filing Form 5471 for U.S. Citizens with Foreign Corporations You finally launched that dream startup—in Singapore. Or maybe you inherited shares in a family business based in Ireland. Whatever the case, if you're a U.S. citizen, the IRS is still watching—and they expect to see Form 5471. Miss it, and you might get hit with a $10,000 penalty (or more). File it sloppily, and you're waving a red flag at an audit robot. This guide breaks it all down: who needs to file, what each category means, what the IRS looks for—and how to stay off their radar. 📌 Table of Contents What Is Form 5471? Who Must File Form 5471? The Five Filing Categories Explained What Information Goes on the Form? Common Mistakes That Trigger Audits Penalties and How to Avoid Them Tools and Professionals That Can Help 🌎 Many U.S. expats and international founders assume Form 5471 doesn’t apply if there’s no U.S. income involved. Unfortunately, the IRS disagrees—strongly. ...

  Zero-Based Budgeting for Newly Wealthy Professionals Becoming newly wealthy — whether from a business windfall, inheritance, or rapid career success — can be both thrilling and overwhelming. Without a plan, even high-income earners risk lifestyle inflation and missed long-term goals. Zero-based budgeting (ZBB) offers a powerful method to bring structure, clarity, and intention to every dollar you earn. 📌 Table of Contents What Is Zero-Based Budgeting? Why ZBB Works for High Earners How to Build a Zero-Based Budget Avoiding Common Mistakes Recommended Tools for ZBB What Is Zero-Based Budgeting? Zero-based budgeting is a method where every dollar is assigned a specific purpose — income minus expenses equals zero. Unlike traditional budgeting, which carries over last month’s figures, ZBB starts from scratch each month based on priorities. This system forces accountability and helps identify wasteful or unconscious spending. Why ZBB Works for Hig...

  Private REITs vs. Public REITs: Yield and Liquidity Breakdown Real Estate Investment Trusts (REITs) offer a tax-efficient way to invest in real estate without the hassles of property management. But not all REITs are created equal—especially when it comes to yield, access, and liquidity. This guide compares private and public REITs side by side so you can decide which structure is best aligned with your financial goals. 📌 Table of Contents What Are REITs? Private REITs: Features and Risks Public REITs: Features and Accessibility Yield, Liquidity, and Transparency Comparison Which Type of REIT Is Right for You? What Is a REIT? A Real Estate Investment Trust (REIT) is a company that owns or finances income-producing real estate. REITs are required to distribute at least 90% of taxable income to shareholders as dividends. There are two broad categories: ✔️ Public REITs: traded on stock exchanges like the NYSE or NASDAQ ✔️ Private REITs: offered...

  Revenue-Based Financing vs. Equity Dilution for Bootstrapped Startups For founders who’ve built their businesses without outside capital, the next step — raising funds to scale — can spark a major debate: Should you give up equity or fund growth through revenue-based financing (RBF)? This guide compares the two approaches, weighing the impact on ownership, control, flexibility, and growth potential for bootstrapped startups. 📌 Table of Contents What Is Revenue-Based Financing (RBF)? Equity Dilution Explained Side-by-Side Comparison Founder Profiles and Use Cases Key Considerations for Decision Making Further Resources 💸 What Is Revenue-Based Financing (RBF)? Revenue-Based Financing is a non-dilutive capital model where startups receive a lump sum of cash and repay it through a percentage of their monthly revenue until a fixed return is achieved. Example: Borrow $100K, repay 1.5x ($150K) through 5% of monthly gross revenue until repaid. ...