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 […]
Blog
Fiduciary Tax Returns for Estates, Trusts, and Bankruptcy Estate
The IRS requires the fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate file Form 1041 to report: The income, deductions, gains, losses of the estate or trust. The income that is either accumulated or held for future distribution or distributed currently to the beneficiaries. Any income tax liability of the estate or trust. […]
Trump Accounts: New Long Term Savings Vehicles for Minors
A new class of longterm savings vehicles—referred to as Trump Accounts—has been created to promote financial literacy, retirement preparedness, and early asset accumulation for individuals under age 18. These accounts operate as modified traditional IRAs under §408(a), with eligibility, contribution, and distribution rules specifically tailored to minors. Who Is Eligible Any U.S. child under age […]
§529 Expansion of Qualified Expenses for K–12 Education
Recent changes to §529 rules significantly expand the types of K–12 educational expenses eligible for taxfree 529 plan distributions. Beginning in taxable years after December 1, 2025, families may withdraw up to $20,000 per student per year for qualified K–12 tuition—double the previous $10,000 limit. This increase provides families with greater flexibility to use 529 […]
Deductible Car Loan Interest
For tax years 2025 through 2028, taxpayers may deduct up to $10,000 of interest paid (subject to limitations and phaseouts) on a loan used to purchase a qualifying passenger vehicle for personal use under a temporary provision in §163(h)(4). To qualify, the loan must be incurred after December 31, 2024, secured by a first lien […]