FAQ
Frequently asked questions
Straight answers about how The Silent Tax works.
The Silent Tax
Your questions, answered
What is a "silent tax"?
A silent tax is a cost that erodes wealth without an obvious bill — inflation, bracket creep, the 3.8% net investment income tax, AMT, state taxes, depreciation recapture, estate tax and capital gains on an exit. They tend to surface only when income rises, an asset is sold or an estate passes.
What is a Delaware Statutory Trust (DST)?
A Delaware Statutory Trust is a legal entity that holds real estate in which investors buy fractional interests; the IRS (Rev. Rul. 2004-86) allows a properly structured DST interest to qualify as like-kind replacement property in a 1031 exchange. DSTs are illiquid, passive, usually limited to accredited investors, and carry real estate and sponsor risk.
Are carbon credits tax deductible?
Generally, no — buying voluntary carbon credits is usually not a federal tax deduction for an individual. That is different from federal energy credits such as §45Q for qualifying carbon capture projects or transferable credits under the Inflation Reduction Act, which follow strict eligibility rules; ask a CPA before relying on any of them.
What is QSBS?
Qualified Small Business Stock under Internal Revenue Code §1202 can allow some or all of the gain on the sale of eligible C corporation stock to be excluded from federal income tax, if holding-period, active-business and other requirements are met. Eligibility is technical, so confirm it with a tax attorney before a sale.
How do I avoid aggressive tax schemes?
Be wary of any strategy that promises a guaranteed or outsized deduction — the IRS designates some arrangements, such as certain syndicated conservation easements, as listed transactions with disclosure requirements and penalties. Legitimate planning has economic substance and a CPA or tax attorney willing to sign off on it.
What happens when I ask to talk to an expert?
Your request goes directly to The Silent Tax and is reviewed personally; we follow up to understand your situation and, where it fits, introduce you to an appropriate professional. Nothing on this site is individualized tax, legal or investment advice.
Is this tax advice?
No. The Silent Tax is educational content about tax concepts and strategies only; consult your own CPA, tax attorney or financial advisor before acting.