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. […]
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 […]
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 […]
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 […]
In 2026, the IRS raised the federal estate tax exemption to $15 million per individual. You may also give up to $19,000 per person each year without triggering gift tax. The recipient generally owes no tax and does not need to report the gift unless it comes from a foreign source. However, if you give […]