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Score a triple win when a trust fails

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in Small Business Tax,Small Business Tax Deduction Strategies

Sometimes, it makes sense to intentionally do things “the wrong way” in the tax world. This could be one of those times. Strategy: Set up an intentionally defective trust (IDT). As the name implies, the arrangement is designed to fail the tax rules for “nongrantor trusts.” In the end, however, the IDT is a triple tax winner.

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