Comprehensive coverage of U.S. Federal and State tax laws. Professional insights to help you navigate complex tax regulations and compliance requirements.
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…
Does my state follow the new federal OBBBA tax breaks? Not automatically. OBBBA state conformity varies widely — some states adopt the new federal rules on R&D expensing, bonus depreciation, and Section 179, while others decouple. A deduction you claim on your federal return may be added right back on your state return. The One…
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…
Can I open and manage a Trump Account online? Yes. The IRS now lets taxpayers view and submit Trump Account elections directly inside their IRS Individual Online Account using Form 4547, Trump Account Election(s). A Trump Account is a new tax-advantaged account for a child under 18 with a valid Social Security number, created by…
Is Congress about to change how crypto is taxed? Not yet — but it’s actively working on it. In June 2026, the House Ways and Means Committee held a hearing on a slate of digital-asset tax bills aimed at fixing gaps in how cryptocurrency is taxed. The proposals include: a de minimis exception so small…
