Tax Trifecta Trust Calculator

Business owners can leverage non-grantor trusts (known as the "Tax Trifecta Trust") to multiply tax benefits and potentially save hundreds of thousands annually through income shifting, SALT deduction multiplication, Section 199A preservation, and state tax elimination.

This calculator helps you determine whether the Tax Trifecta Trust strategy could benefit your specific situation. The primary savings come from stacking multiple tax strategies, though there are administrative costs to consider.

1 Basic Info
2 Select Benefits
3 Configure
4 Results

Let's Start with the Basics

We need some basic information about your business income and tax situation.

Your total annual business income before taxes
Typical rates: 24%, 32%, 35%, or 37%
Enter your state's income tax rate (0% for states like TX, FL, NV, WY)
SSTB includes law, accounting, health, consulting. Most other businesses are Non-SSTB.

Which Benefits Apply to You?

Select the tax benefits that fit your situation. We'll configure the details in the next step.

Simple Mode: Uses smart defaults for advanced calculations - perfect for quick estimates.
Detailed Mode: Allows you to enter specific values like W-2 wages and property basis for the most accurate Section 199A deduction calculations.
Income Shifting to Lower Brackets
Distribute income to family members in lower tax brackets, potentially saving 10-20% on taxes.
Estimated Impact: High
Typical rate for adult children: 22-24%
SALT Deduction Multiplication
Each trust gets its own $40,000 SALT cap, multiplying your state tax deduction.
Estimated Impact: Medium
Section 199A Preservation
Maintain access to the 20% QBI deduction by keeping income below phase-out thresholds.
Estimated Impact: High
Usually 85-95%
State Tax Elimination
Establish trusts in no-tax jurisdictions to eliminate state income tax on distributed income.
Estimated Impact: High
QSBS Stacking (Business Sale)
Stack multiple $15M QSBS exclusions when selling qualified small business stock.
Only if selling business
Only relevant if you plan to sell your business

Final Configuration

Let's configure the trust structure and estimate costs.

Typical: 3-5 trusts for family members. More trusts = more SALT benefits but higher costs.
Typical range: $2,500 - $5,000 per trust per year for tax prep and filing
$0
Estimated Annual Tax Savings
Savings Breakdown by Benefit
Status Quo
Federal Tax $0
State Tax $0
199A Deduction $0
Admin Costs $0
Total Cost $0
With Trifecta Trust
BEST OPTION
Federal Tax $0
State Tax $0
199A Deduction $0
Admin Costs $0
Total Cost $0

Disclaimer: This calculator provides estimates for educational purposes only and should not be considered legal or tax advice. Every business situation is unique, and the actual tax implications of implementing a Tax Trifecta Trust strategy depend on numerous factors including state laws, business structure, trust situs, and individual circumstances. Please consult with a qualified tax professional or attorney before making any decisions regarding trust planning.