Jun 18, 2026 · 13 min · 10 segments
Brent chats about what options might be available to avoid the application of the JCT’s Blue Book’s footnote 102. He discusses the distribution mechanisms, beneficiary deemed owned trusts, qualified…
No entities detected.
It's always great to be with you.
And I wanted to address one possibility that has to do with the footnotes to the blue book, this footnote 102.
I talked about this in a past episode, but just the recap quickly.
is the Joint Committee on Taxation suggested that the new Section 68 limitation on itemized deductions, the limitation largely, although I'm generalizing, being that you reduce the deduction by two thirty sevenths so that you cannot take that reduced amount as a deduction would apply to the income distribution deduction for trusts and estates.
So this would be a not great result.
So maybe some ideas about, well, what would you do? What are a couple of easy, I'm saying easy sort of in air quotes, because none of this is necessarily easy, but just like, you know, some like low hanging fruit to consider.
Let's assume that this footnote is correct.
And so now we've got, non-grantor trusts or estates.
And there's a couple of things, some ideas out there that I've been thinking about, other ideas that I've heard other very smart people suggest.
And so I'll just kind of recap them here in very summary fashion with the caveat that nobody really knows exactly how this would work because it is literally just a It is a footnote to the Blue Book.
It is not necessarily the law, and we have absolutely no other guidance than that.
We haven't gotten any guidance from the IRS.
It's always great to be with you.
And I wanted to address one possibility that has to do with the footnotes to the blue book, this footnote 102.
I talked about this in a past episode, but just the recap quickly.
is the Joint Committee on Taxation suggested that the new Section 68 limitation on itemized deductions, the limitation largely, although I'm generalizing, being that you reduce the deduction by two thirty sevenths so that you cannot take that reduced amount as a deduction would apply to the income distribution deduction for trusts and estates.
So this would be a not great result.
So maybe some ideas about, well, what would you do? What are a couple of easy, I'm saying easy sort of in air quotes, because none of this is necessarily easy, but just like, you know, some like low hanging fruit to consider.
Let's assume that this footnote is correct.
And so now we've got, non-grantor trusts or estates.
And there's a couple of things, some ideas out there that I've been thinking about, other ideas that I've heard other very smart people suggest.
And so I'll just kind of recap them here in very summary fashion with the caveat that nobody really knows exactly how this would work because it is literally just a It is a footnote to the Blue Book.
It is not necessarily the law, and we have absolutely no other guidance than that.
We haven't gotten any guidance from the IRS.
The rest of this transcript — segmented and speaker-labeled, so you land on the exact moment something was said
Search every transcript — by keyword, by phrase, or by meaning, across every show Radar indexes
Trends — what is surging across podcasts, measured against its own baseline
Alerts — when a name you follow appears in a newly indexed episode
No account is needed to search Radar.