Treasury officials’ interest in tax-aware long-short funds, box spreads and Section 351 exchanges has renewed questions about sophisticated tax-planning strategies.
Jeff Levine, chief planning officer for Focus Partners, joins Bob Powell to explain tax risk tolerance: an investor’s willingness to accept the possibility that the IRS could challenge a strategy or reject its intended tax treatment.
They discuss:
- Where legitimate tax planning can enter a gray area.
- How tax risk differs from investment risk.
- Why prospective and retroactive decisions matter.
- When to consult a CPA, financial adviser or tax attorney.
- What a tax opinion can and cannot establish.
- How to decide whether potential savings justify the uncertainty.
Questions for Bob and Jeff can be sent to [email protected].