Stocks, bonds, and property are considered capital assets. When you sell or otherwise dispose of a capital asset, this can create a taxable event that must be reported to the IRS for income tax purposes. The IRS states that when you sell a capital asset, the difference between the adjusted basis in the asset and […]
If you buy a new car (assembled in the USA) in 2025 and make loan payments on it, you may be able to deduct up to $10,000 in interest—even if you don’t itemize deductions. To qualify, the loan must be incurred after December 31, 2024, and secured by a first lien on the vehicle. Easy […]
👉 No Tax on Overtime (up to $12,500) If you earn extra income from overtime, you may be able to deduct the amount of overtime compensation received during the taxable year, up to $12,500. 👉 No Tax on Tips (up to $25,000) For the first time ever, tip income can be tax-free—up to $25,000 if […]
Beginning in 2026, the tax rules for gambling losses are more restrictive. 👉 New Cap on Gambling Losses First, taxpayers may deduct only 90% of their yearly gambling losses. Second, those deductible losses cannot exceed total gambling winnings, maintaining a key restriction from prior law. For instance, if a taxpayer has $10,000 in losses and […]
If you’re in school, just started working, or learning a trade, the tax code can help to lower the cost of education and training. Here are a few relevant items to keep in mind: 👉 Education Credits Apply to More Than Just College The American Opportunity Credit and Lifetime Learning Credit aren’t just for traditional […]