Practical tax tips and deduction strategies for individuals and small business owners. Actionable advice to help you minimize liability and maximize returns.
Do I have to file a gift tax return for money I put in a Trump Account? In most cases, no. Under IRS Rev. Proc. 2026-25, the Trump Account gift tax safe harbor treats qualifying cash contributions as current-interest gifts within the $19,000 annual exclusion, so most families skip Form 709 entirely. The launch of…
Who qualifies for the new $25,000 federal tip deduction? The tip deduction 2026 is an above-the-line deduction for workers in customarily tipped jobs — waiters, bartenders, stylists, rideshare drivers and roughly 70 other IRS-listed occupations — worth up to $25,000 of qualified tips for tax years 2025 through 2028, subject to income phaseouts. For decades,…
When is a California resident beneficiary of a discretionary trust actually taxed on trust income? Only when the trustee decides to distribute. In its new Legal Ruling 2026-01, the FTB confirmed that California discretionary trust tax under R&TC section 17742 hinges on whether the beneficiary’s interest is “contingent” — and while the trustee holds sole…
What are the new 2026 tips and overtime deduction rules for employers? For tax years 2025 through 2028, employees can deduct up to $25,000 of qualified tips and up to $12,500 of qualified overtime pay ($25,000 for joint filers). The tips and overtime deduction is claimed on the employee’s return, but it creates new payroll…
Do you owe tax when you rent out your vacation home? It depends on how many days. Understanding vacation home rental tax starts with one number: 14. Rent the place 14 days or fewer a year and the income is tax-free; rent it more and the income is taxable — but you can deduct expenses,…
What rights do you have when dealing with the IRS? Ten of them. The Taxpayer Bill of Rights groups long-standing protections in the tax law into ten fundamental rights — from the right to be informed to the right to a fair and just tax system. They are adopted in Internal Revenue Code § 7803(a)(3)…
Can you defer tax when you sell investment property? Often, yes. A Section 1031 exchange lets you defer capital gains tax when you swap real property held for business or investment for like-kind real property. The trade-off: strict deadlines — 45 days to identify a replacement and 180 days to close — and, since 2018,…
Are the Opportunity Zone rules changing? Yes. In IRS Notice 2026-40, the Treasury Department and the IRS announced that they intend to issue proposed regulations on Qualified Opportunity Zones under Internal Revenue Code §§ 1400Z-1 and 1400Z-2, as amended by the One, Big, Beautiful Bill Act (OBBBA). The notice provides transitional guidance for investments made…
Is the SALT deduction cap going away in 2026? No. Federal courts continue to uphold the SALT deduction cap, with a New Jersey federal court dismissing another constitutional challenge in May 2026. But there is relief: the One Big Beautiful Bill raised the cap from $10,000 to $40,000 beginning in 2025, with a 1% annual…
What are the federal student loan caps 2026 effective July 1? The Department of Education’s final rule eliminates unlimited borrowing under the Graduate PLUS Program effective July 1, 2026. Eleven designated “professional” degrees (law, medicine, dentistry, etc.) face $50K annual / $200K aggregate caps. All other graduate fields — including accounting, engineering, and nursing —…
How can I tell if an IRS letter is real or a scam in 2026? The IRS’s paper-check phase-out has triggered an unprecedented wave of legitimate letters asking taxpayers for bank account information — which looks suspiciously like a scam. Always verify by logging into your IRS online account at IRS.gov, where every real notice…
What is the IRS conservation easement settlement opportunity announced in 2026? Per IR-2026-63 (May 6, 2026), the IRS updated its Conservation Easement site with expanded warnings on abusive transactions and recent court decisions, and announced a forthcoming time-limited settlement program — letting eligible partnerships resolve disputed federal tax consequences with certainty before pursuing litigation. If…
Why use the IRS Withholding Estimator OBBBA update for mid-year tax planning? The IRS Tax Withholding Estimator now reflects all the new OBBBA deductions and credits — tipped income, overtime pay, car loan interest, enhanced senior deduction, plus updated family, homeownership, and charitable giving items — making mid-year withholding adjustments essential to avoid surprise balance-due…
What is the new wagering losses 90% limitation under OBBBA? Section 70114(a) of the One Big Beautiful Bill Act amended IRC Section 165(d) to limit the deduction of wagering losses to 90% of the amount lost during the year — and only to the extent of wagering gains. Treasury’s proposed regulations (REG-113229-25) implement this change…
What are the California PTE elective tax 2026 deadlines and SB 132 changes? Qualified entities must make the PTE elective tax initial payment by June 15, 2026 — the greater of 50% of last year’s elective tax or $1,000 — or face a 12.5% reduction in PTE credit allocated to consenting partners under Senate Bill…
What are the IRS tax debt resolution options if I can’t pay what I owe? The IRS offers four main paths: short-term and long-term Installment Agreements, Offer in Compromise (OIC) for those who can prove inability to pay, Currently Not Collectible (CNC) status to pause collections, and Penalty Abatement to reduce or eliminate associated penalties….
What is the foreign earned income exclusion relief under Rev. Proc. 2026-16? The IRS waives the section 911 residency and presence tests for 2025 for qualified individuals who had to leave seven specified countries due to war, civil unrest, or similar adverse conditions. If you’re a US citizen or resident who was living abroad and…
Which jobs qualify for the new qualified tips deduction under OBBBA? The IRS final rule under Section 224 lists 68 tipped occupations across 8 categories — from servers and bartenders to barbers, delivery drivers, golf caddies, and digital content creators — capped at $25,000 per year through 2028. The long-awaited IRS final regulations on the…
How does the new 1% remittance tax affect LA families? The new remittance transfer tax 2026 imposes a 1% excise on cash-based international money transfers under OBBBA Section 4475. Learn exemptions, compliance tips, and how to legally reduce exposure. The remittance transfer tax 2026 is officially here. With the enactment of the One, Big, Beautiful…
Will your estate owe state tax in 2026? Federal estate tax exemption hits $15M in 2026, but 12 states plus DC impose their own state estate tax 2026 — some with thresholds as low as $1 million. Cliff states can tax your ENTIRE estate if you exceed the limit by even one dollar. When most…
Can’t pay your tax bill after April 15? The IRS just launched a new IRS tax debt help tool on April 16, 2026. Our Los Angeles CPAs explain payment plans, Offer in Compromise, and relief options for 2026. If the April 15, 2026 deadline came and went with an unpaid balance staring back at you,…
What tax legislation should you watch in 2026? Our Los Angeles CPA team breaks down the key tax bills 2026 that could reshape estate planning, disaster relief, cryptocurrency reporting, and ACA premium credits for individuals and businesses. As we move deeper into the second quarter of 2026, Washington is quietly working through a stack of…
Can you really file your taxes for free in 2026? Yes — from VITA and IRS Free File to MilTax, multiple programs let you prepare and e-file your federal return at zero cost. Plus, the W-2G reporting threshold just increased to $2,000. If you are looking for free tax filing 2026 options, you are far…
Does IRS Notice 2026-24 waive the underpayment penalty for farmers and fishermen? Yes — the farmer fisherman underpayment penalty waiver 2026 provided under IRS Notice 2026-24 waives the addition to tax under IRC §6654(a) for qualifying farmers and fishermen who did not make estimated tax payments for the 2025 tax year, provided they file their…
What do Californians need to know before the FTB April 15 tax deadline? The California Franchise Tax Board has set April 15 as the 2026 filing deadline for most taxpayers. Free CalFile e-filing, CalEITC credits up to $3,756, payment plans, and one-time penalty abatement are all available to help you meet this important date. The…
What are my options for last minute tax filing before April 15? If you haven’t filed your 2025 federal tax return yet, the IRS still offers free filing through IRS Free File, in-person help via VITA and TCE sites, and a straightforward extension process — all available right up to the deadline. With the April…
Are scammers exploiting the One Big Beautiful Bill? Yes — OBBBA tax scams are already active in 2026, with fraudsters targeting seniors, workers, and small business owners. This guide covers every major scam type so you can protect yourself and your finances. Tax season is stressful enough on its own. But whenever Congress passes major…
What are the California FTB 2026 tax updates? The California FTB 2026 tax updates include SB 711’s change to California’s IRC conformity date, new Pass-Through Entity (PTE) elective tax add-back rules, an expanded California Competes Tax Credit, and a new online tool to verify submitted tax returns — all detailed in FTB’s March 2026 Tax…
What are the IRS tax year 2026 inflation adjustments? The IRS officially released IRS inflation adjustments 2026 under Revenue Procedure 2025-32, including a standard deduction increase to $32,200 for married filing jointly couples, revised marginal tax brackets, higher EITC limits, and a $15 million estate tax exclusion — all shaped by the One Big Beautiful…
What free tax filing options are available to military members in 2026? Military tax filing 2026 is easier than ever — service members and their families can use MilTax (free, no income limit) or IRS Free File (AGI under $89,000 for 2025 returns), plus benefit from combat pay exclusion, extended deadlines, and special Earned Income…
