Start with the question.

Tax law becomes easier to navigate when you separate the taxpayer, the tax year, the transaction, and the rule. Choose a starting point.

Income, deductions, credits, extensions, estimated payments, and common misconceptions.

Contributions, three basis ledgers, allocations, liabilities and distributions.

Distinguish statutes, regulations, published administrative guidance and explanatory material.

A reading habit

Ask these four questions.

An individual, a partner, a partnership and a corporation can each face different rules for the same economic event.

A form filed this year may report last year. Confirm the tax period, enactment dates and transition rules.

Characterize the transaction before calculating: income, contribution, distribution, sale, debt change, or something else.

Trace an explanation to the Code and relevant regulations. Check exceptions and cross-references before reaching a conclusion.

Outside basis, inside basis and book capital are related, but each follows a different ledger.

An annual basis schedule explains why the cash received and income reported can be different.

Identify cash, deemed cash, outside basis and the special rules before reaching a conclusion.