Source-cited explainers on Tax Planning, in plain English or Spanish, for the individuals and businesses we serve across Miami and beyond.
Under Section 663(b), the fiduciary of a complex trust or the executor of a decedent's estate can treat a distribution in the first 65 days as paid the prior year. Made on Form 1041, the election is irrevocable and needs a timely return.
Section 121 lets a homeowner exclude up to $250,000 of gain (or $500,000 on a joint return) when selling a main home. The 2-of-5-year ownership and use tests unlock the tax-free treatment, and any depreciation claimed after May 6, 1997 stays taxable.
Rental real estate losses are passive by default and can only offset passive income. A special $25,000 allowance lets active-participation landlords deduct losses against wages, but it phases out between $100,000 and $150,000 of modified adjusted gross income.
A self-employed filer with a Solo 401(k) can push after-tax dollars into a Roth account beyond the $24,500 elective deferral limit and up to the 2026 annual additions ceiling. Here is how the moving parts fit together.
For decedents dying in 2026, the federal estate tax filing threshold rises to $15,000,000. Here is how the exemption works, when Form 706 is required, and how the portability election protects a surviving spouse.
No IRS ruling, regulation, or notice addresses event contracts by name, so Kalshi and Polymarket traders pick a characterization without guidance. Here is what the Code says, where the real arguments are, and why the 90 percent wagering loss limit makes 2026 the year it matters.
Rental real estate is passive by default, so losses can only offset passive income. Real estate professional status, active participation, short-term rental treatment, and Section 121 each change that answer. Here is how the framework fits together.
The One Big Beautiful Bill Act restored 100 percent first-year depreciation for property placed in service after Jan. 19, 2025, revived immediate expensing of domestic research costs, and reset the Section 179 caps for 2025 and 2026.
Incentive stock options, non-qualified options and restricted stock units each create income at a different moment and in a different character. Here is when each one hits your return, how the AMT adjustment works, and where employers report the amounts.
Rental losses are passive by default. Real estate professional status takes more than 750 hours in real property trades or businesses plus more than half of all your personal services, and you must still materially participate in each rental activity.
The 3.8 percent Net Investment Income Tax hits once MAGI passes $200,000 single or $250,000 married filing jointly. Interest, dividends, capital gains, rent, and royalties count; wages do not. Here is how the lesser-of math works and how to report it on Form 8960.
A gift over the annual exclusion means a Form 709 is due, even when no tax is owed. Here is who files for 2026, how the $19,000 per recipient exclusion works, and how reportable gifts draw down the $15,000,000 lifetime exclusion.
A Section 83(b) election taxes restricted stock at its transfer-date value instead of the higher vested value, but only if you file Form 15620 or a signed written statement within 30 days. Here is what it covers and who cannot use it.
A short-term rental with an average guest stay of 7 days or less is not a rental activity under the IRS passive activity rules, so meeting one material participation test turns the loss nonpassive against wages.
The itemized SALT deduction limit is $40,000 for tax year 2025 ($20,000 if married filing separately), reduced above $500,000 of modified AGI. Here is how a pass-through entity tax election still fits for multistate partners and S corporation shareholders.
The One, Big, Beautiful Bill Act created two deductions starting with tax year 2025: up to $25,000 of qualified tips and up to $12,500 of qualified overtime, or $25,000 on a joint return. Both phase out above $150,000 of modified adjusted gross income.
Section 1202 lets shareholders of a domestic C corporation exclude qualified small business stock gain. The gross asset ceiling is $75 million for stock issued after July 4, 2025, and $50 million for stock issued on or before that date.
Section 174A restored immediate expensing of domestic research or experimental costs for tax years beginning after December 31, 2024. A 60-month amortization election is available, and foreign research stays on a 15-year track.
Public Law 119-21 made the 100% first year deduction permanent for qualified property acquired after January 19, 2025, and set the 2026 Section 179 cap at $2,560,000 with the phase down starting at $4,090,000.
Newsletter
Join our list for plain-language tax tips, key deadline reminders, and timely updates for individuals and businesses across Miami and beyond.
Insights topic
Tell us about your situation. An Enrolled Agent will answer in plain English or Spanish, with the citation behind the answer.
