Advising & Planning

Up to $500,000 if both meet the use test, at least one meets the ownership test, and neither sold another home within 2 years

$0.70 per mile (must be used in the first year the vehicle is placed in service)

Up to 60% of AGI for cash contributions to qualified charities. Excess carries forward 5 years.

Deductible up to gambling winnings, but only if itemizing on Schedule A. Keep detailed records. (2026+: OBBBA reduces to 90% of losses.)

Tax on transfers to skip persons (anyone >37.5 years younger than transferor). Closes the loophole of bypassing a generation. Exemption = $13,990,000 (2025). Top rate 40%.

If a 1031 exchange involves related parties and either disposes within 2 years, deferred gain/loss is recognized in the disposition year. Exceptions: death, involuntary conversion, or proof of non-tax-avoidance motive.

Publicly traded securities (stocks/bonds on established market — gain reported in sale year) Inventory Property sold at a loss

Loss treated as ORDINARY loss (not capital loss) up to $50,000 ($100,000 MFJ) per year. Excess is capital loss. Must be original issue from qualifying small business (capitalization ≤$1M).

Treated as sold on last day of tax year for $0 — capital loss. Must be completely worthless. 7-year amended-return window (vs normal 3 years) to claim the loss.

Taxpayer may expense each invoice/item costing ≤$2,500 (does not apply to inventory or land purchase). Election made annually on the return.

Farming losses can be carried back 2 years. Farmer must elect on the return. All other post-2020 NOLs have no carryback (indefinite carryforward only).

No — 1099-C does NOT mean the amount is automatically taxable. Taxpayer must evaluate whether a §108 exclusion applies (QPRI, insolvency, bankruptcy) and file Form 982.

COD excluded to the extent taxpayer was insolvent (total liabilities > FMV of total assets) immediately before cancellation. Exclusion limited to amount of insolvency. File Form 982. Tax attributes reduced per §108(b).

Innocent spouse (Form 8857): tax understated by spouse's wrongdoing — seek relief from liability. Injured spouse (Form 8379): your share of joint refund seized for spouse's past debts — get your portion back.

Emotional distress alone is NOT treated as physical injury. However, damages received for medical care attributable to emotional distress (up to amount actually paid) ARE excludable.

Depends on who paid the premium: Employer paid 100% → benefits 100% taxable Employee paid 100% with after-tax dollars → NOT taxable Employee paid 100% with pre-tax dollars → 100% taxable Shared payment → taxable in proportion to employer-paid share

Qualified plan awards (length-of-service or safety): up to $1,600 excluded. Non-qualified plan awards: up to $400 excluded. Cash, gift cards, stocks, and tickets never qualify.

The non-QPRI portion is discharged FIRST. QPRI covers only the excess after non-QPRI is extinguished. This is the §108(h)(4) ordering rule — NOT proportional. If the discharged amount does not exceed the non-QPRI portion, QPRI exclusion is $0.

$0. Non-QPRI ($70,000) is discharged first. Since $40,000 discharged < $70,000 non-QPRI, no QPRI exclusion applies. All $40,000 is non-QPRI COD — fully taxable unless another exclusion applies.

(1) Must be acquisition indebtedness (used to buy, build, or substantially improve the principal residence). (2) Must be secured by the residence. (3) Must be the taxpayer's principal residence.

The §83(b) election must be filed within 30 days of receiving the restricted stock. It is IRREVOCABLE once made.

2 years carried back 20 years carried forward 100% no 80% cap

no carryback farming indefinite carried forward 80%

5 years carried back 100% no 80% cap 2018 2019 2020 expired

MFJ: $32,000 (50% taxable threshold) / $44,000 (85% taxable threshold). MFS who lived together at any time: $0 base amounts. MFS who lived APART all year: $25,000/$34,000.

$100,000 military death gratuity is entirely TAX-FREE. SGLI (Servicemembers' Group Life Insurance) is also tax-free to beneficiaries.

Reservists who travel MORE THAN 100 miles from home for drill/meetings AND stay overnight can deduct unreimbursed travel expenses on Schedule 1, Line 12. Includes transportation, lodging, and 50% meals. Use Form 2106.

$250,000 ($500,000 MFJ). Must have OWNED and USED the property as a principal residence for at least 2 of the 5 years preceding the sale. The 2 years need not be consecutive. Cannot have used the exclusion in the prior 2 years.

Reduced exclusion = full exclusion ($250K/$500K) × (shorter of qualified-use period OR period since last exclusion, in days) ÷ 730 days (24 months). Approved reasons: change in employment (new job ≥50 miles farther), health, or unforeseen circumstances.

$0. Under §108(h)(4), the non-QPRI ($70,000) is discharged first. Since $40,000 discharged is less than $70,000 non-QPRI, ZERO QPRI exclusion. The entire $40,000 is non-QPRI COD — taxable unless insolvency or bankruptcy applies.

Must be filed within 30 days of receiving restricted stock. The election is IRREVOCABLE once made. Tax is recognized at grant (FMV minus amount paid) rather than at vesting.

The CARES Act temporarily allowed a 5-year carryback for NOLs from 2018-2020 with 100% offset (no 80% cap). These rules have since expired. Do not apply them to post-2020 NOLs.

MFJ: $32,000 (up to 50%) / $44,000 (up to 85%). MFS who lived TOGETHER at any time: $0 base (all benefits taxable). MFS who lived APART all year: $25,000 / $34,000 (same as single).

Reservists who travel MORE THAN 100 miles from home for drill/meetings AND stay overnight can deduct unreimbursed travel expenses on Schedule 1, Line 12. Includes transportation, lodging, and 50% meals. Form 2106 required.

$250,000 ($500,000 MFJ). Must have OWNED and USED the home as a principal residence for at least 2 of the 5 years preceding the sale. Need not be continuous. Cannot have used the exclusion in the prior 2 years. For MFJ: both spouses must meet the use test; at least one must meet the ownership test; neither used the exclusion in the prior 2 years.

seller's loss is not deductible if the related buyer later sells at a gain, prior disallowed loss offsets gain recognized gain cannot be reduced below zero by the prior disallowed loss family includes siblings, spouse, ancestors, and lineal descendants