No — as of 2026, the wash-sale rule (which disallows a loss if you repurchase the same security within 30 days) does not apply to cryptocurrency. The IRS classifies crypto as property, not a security, so you can sell crypto at a loss and immediately repurchase the same coin without losing the tax deduction. This may change with future legislation, but for now it is a significant advantage over stock tax-loss harvesting.

The IRS treats cryptocurrency as property. Selling, trading, or spending crypto triggers a capital gain or loss equal to the difference between your cost basis and the sale price. Short-term gains (held less than 1 year) are taxed as ordinary income; long-term gains (held more than 1 year) are taxed at 0%, 15%, or 20% depending on your income. Receiving crypto as payment for services is taxed as ordinary income.

Net capital losses (including crypto losses) can offset up to $3,000 of ordinary income per year. Losses above $3,000 carry forward to future years to offset future capital gains or additional ordinary income. There is no limit on how many years losses can carry forward.

Trading one cryptocurrency for another (e.g., Bitcoin for Ethereum) is a taxable event — you must report the gain or loss on each trade. Using crypto to purchase goods or services is also taxable. Simply holding crypto (HODLing) is not a taxable event. Receiving crypto as a gift is not taxable until you sell it (your basis is the donor's basis or the fair market value on the date of the gift, whichever is lower).

You must track: the date of each acquisition, the cost basis (purchase price plus fees), the date of each sale or exchange, the sale proceeds, and the resulting gain or loss. For large portfolios with many transactions, crypto tax software (CoinTracker, Koinly, TaxBit) can automate this tracking. The IRS requires you to report all crypto transactions, and exchanges are required to issue 1099s for transactions above certain thresholds.

The Child Tax Credit is $2,000 per qualifying child under age 17 in 2026, permanently extended under the OBBBA. Up to $1,700 of the credit is refundable (the Additional Child Tax Credit) for taxpayers with earned income above $2,500. The credit begins to phase out at $200,000 AGI for single filers and $400,000 for married filing jointly, reducing by $50 for every $1,000 of income above the threshold.

The child must be under age 17 at the end of the tax year, a U.S. citizen or resident, claimed as your dependent, and have lived with you for more than half the year. The child must also have a valid Social Security number. There is no limit on the number of qualifying children you can claim.

Yes — up to $1,700 of the $2,000 credit is refundable as the Additional Child Tax Credit (ACTC). If your tax liability is less than the credit amount, you can receive the refundable portion as a cash refund. The refundable amount is calculated as 15% of earned income above $2,500, up to the $1,700 limit per child.

The credit phases out by $50 for every $1,000 (or fraction thereof) of AGI above $200,000 (single) or $400,000 (MFJ). At $440,000 MFJ, the credit is fully phased out for two children. Reducing AGI through retirement contributions, HSA contributions, or business deductions can preserve or increase the credit.

Yes — these are two separate credits. The Child Tax Credit ($2,000/child) is based on having a qualifying child under 17. The Child and Dependent Care Credit (up to $1,050 for one child, $2,100 for two or more) is based on childcare expenses paid so you can work. Both can be claimed in the same year for the same child.

The Residential Clean Energy Credit (formerly the Investment Tax Credit) allows homeowners to claim 30% of the cost of a solar panel system as a federal tax credit. The 30% rate applies to systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034. The credit covers the cost of panels, inverters, mounting hardware, wiring, and installation labor.

No — the Residential Clean Energy Credit is non-refundable, meaning it can reduce your tax liability to zero but cannot generate a refund. However, any unused credit carries forward to future tax years indefinitely until fully used. If your tax liability is less than the credit amount, you will use the remainder in subsequent years.

The Residential Clean Energy Credit applies to your primary or secondary residence. For rental properties, the Investment Tax Credit (ITC) applies instead, which also provides a 30% credit but is claimed as a business credit. Rental property solar installations can also be depreciated, generating additional deductions beyond the credit.

In addition to solar, the Residential Clean Energy Credit covers wind turbines, geothermal heat pumps, battery storage systems (10 kWh minimum), and fuel cells. The Energy Efficient Home Improvement Credit (25C) provides separate credits for insulation, windows, doors, heat pumps, and electric panel upgrades — up to $3,200/year.

Yes — standalone battery storage systems with a capacity of at least 10 kWh qualify for the 30% Residential Clean Energy Credit starting in 2023, even if not paired with solar panels. This is a significant expansion from prior law, which required battery storage to be charged by solar to qualify.

The personal Clean Vehicle Credit (§30D) for new EVs was repealed under the OBBBA for vehicles purchased after December 31, 2025. However, the Commercial Clean Vehicle Credit (§45W, Form 8936) for business-use EVs remains available at up to $7,500 for vehicles under 14,000 lbs. If you are buying an EV for business use, the commercial credit still applies. Book a call to confirm eligibility for your specific vehicle and use case.

To qualify for the full $7,500 credit, the vehicle must be a new plug-in electric vehicle with a battery capacity of at least 7 kWh, have a final assembly in North America, meet critical mineral and battery component sourcing requirements, and fall within MSRP limits ($55,000 for cars, $80,000 for SUVs and trucks). The IRS maintains a current list of qualifying vehicles at fueleconomy.gov.

Yes — starting in 2024, you can transfer the Clean Vehicle Credit to the dealer at the point of sale, effectively receiving the credit as a discount on the purchase price. This is beneficial if your tax liability is less than $7,500 or if you want the benefit immediately rather than waiting until you file your return. The dealer then claims the credit from the IRS.

Businesses can claim the Commercial Clean Vehicle Credit (Form 8936) for EVs used in business, which provides up to $7,500 for vehicles under 14,000 lbs GVWR and up to $40,000 for larger commercial vehicles. Unlike the personal credit, the commercial credit has no income limits and no MSRP caps. Businesses can also combine the credit with Section 179 expensing and bonus depreciation.

The personal Clean Vehicle Credit is non-refundable — it can reduce your tax liability to zero but cannot generate a refund. However, if you transfer the credit to the dealer at purchase, you receive the full benefit regardless of your tax liability. The Commercial Clean Vehicle Credit for businesses is also non-refundable but can be carried back 1 year or forward 20 years.

The annual gift tax exclusion is $19,000 per recipient in 2026 (indexed for inflation). You can give $19,000 to as many people as you want each year without filing a gift tax return or using any of your lifetime exemption. Married couples can combine their exclusions to give $38,000 per recipient per year through gift-splitting.

No — gifts within the annual exclusion ($19,000 per recipient in 2026) do not require a gift tax return (Form 709). However, if you make a gift that exceeds the annual exclusion to any one person, you must file Form 709 to report the excess, even if no gift tax is due (the excess reduces your lifetime exemption).

Yes — gifts above the annual exclusion reduce your lifetime gift and estate tax exemption (approximately $15 million+ per person in 2026, permanently doubled under the OBBBA). As long as your total lifetime taxable gifts (above annual exclusions) do not exceed the exemption, no gift tax is due. Only when cumulative taxable gifts exceed the lifetime exemption does gift tax apply at 40%.

Yes — the annual exclusion applies to gifts to any individual, including grandchildren. However, large gifts to grandchildren (or great-grandchildren) may also trigger the Generation-Skipping Transfer (GST) tax, which has its own exemption (approximately $15 million+ in 2026, permanently doubled under the OBBBA). Gifts within the annual exclusion are automatically exempt from GST tax.

Yes — you can elect to treat a lump-sum contribution to a 529 plan as if it were made ratably over 5 years, allowing you to contribute up to $95,000 per beneficiary ($190,000 for married couples) in a single year without gift tax consequences in 2026. This is called the "superfunding" election and must be reported on Form 709.

The Energy Efficient Home Improvement Credit (Section 25C) provides a 30% credit for qualifying energy efficiency improvements to your primary residence. The annual credit limit is $3,200 total, with sub-limits: $2,000 for heat pumps and biomass stoves, $1,200 for insulation, windows, doors, and energy audits (with further per-item limits). The credit resets each year through 2032.

Qualifying improvements include: heat pumps (air-source and geothermal), heat pump water heaters, biomass stoves and boilers, exterior windows and skylights (must meet Energy Star Most Efficient criteria), exterior doors (must meet Energy Star requirements), insulation and air sealing materials, and home energy audits. Central air conditioners and gas furnaces may also qualify if they meet efficiency thresholds.

Yes — unlike the old Nonbusiness Energy Property Credit which had a lifetime limit, the new Section 25C credit has an annual limit that resets each year. You can claim up to $3,200 in credits per year through 2032, allowing you to spread energy upgrades across multiple years and maximize the total credits claimed.

No — the Section 25C credit applies only to your primary residence. Rental properties do not qualify for this credit. However, energy efficiency improvements to rental properties can be depreciated as capital improvements, and in some cases may qualify for bonus depreciation or Section 179 expensing if the property is used in a trade or business.

Yes — the Section 25C (Energy Efficient Home Improvement Credit) and the Section 25D (Residential Clean Energy Credit for solar) are separate credits with separate limits. You can claim both in the same year. For example, installing solar ($10,500 credit) and a heat pump ($2,000 credit) in the same year would generate $12,500 in total federal tax credits.

Yes. You can donate long-term appreciated stock (held more than 1 year) directly to a qualified charity or Donor-Advised Fund and deduct the full fair market value on the date of the gift — up to 30% of AGI. You also avoid paying capital gains tax on the appreciation. This is almost always more tax-efficient than selling the stock and donating cash.

When you donate appreciated stock, you get two tax benefits: (1) a charitable deduction for the full fair market value, and (2) you avoid capital gains tax on the appreciation. When you donate cash, you only get the charitable deduction. For stock with large embedded gains, the difference can be tens of thousands of dollars.

You can donate publicly traded stocks, mutual funds, ETFs, bonds, real estate, private company stock, cryptocurrency, and other appreciated assets. The deduction rules vary by asset type: publicly traded securities are deductible at fair market value; private company stock and real estate require a qualified appraisal; cryptocurrency is treated like property.

Contributions of long-term appreciated capital gain property to public charities are deductible up to 30% of AGI. Contributions to private foundations are limited to 20% of AGI. Excess contributions carry forward for up to 5 years. Cash donations to public charities are deductible up to 60% of AGI.

Yes. The IRS treats cryptocurrency as property, so donating appreciated crypto directly to a qualified charity or DAF allows you to deduct the fair market value and avoid capital gains tax on the appreciation — the same as donating appreciated stock. The charity or DAF can then sell the crypto tax-free.

A Dependent Care FSA (DCFSA) is an employer-sponsored benefit that lets you set aside pre-tax dollars to pay for qualifying dependent care expenses. The annual contribution limit is $5,000 per household ($2,500 if married filing separately). Contributions reduce your taxable income for federal income tax, Social Security tax, and Medicare tax — making the effective savings 22-37% depending on your tax bracket.

Qualifying expenses include daycare, preschool, after-school programs, summer day camps, and in-home care (nanny or au pair) for children under age 13. Care for a spouse or dependent who is physically or mentally incapable of self-care also qualifies. Overnight camps, tutoring, and kindergarten tuition do not qualify.

Yes, but not on the same expenses. The $5,000 FSA contribution reduces the expense base available for the Child and Dependent Care Credit. If you have one child, the credit base is $3,000 — after the $5,000 FSA, there is no remaining base for the credit. With two or more children, the credit base is $6,000 — after the $5,000 FSA, $1,000 remains eligible for the credit.

Dependent Care FSAs are "use it or lose it" — unused funds at the end of the plan year are forfeited. Unlike Health FSAs, there is no $640 rollover option. Some employers offer a 2.5-month grace period. Carefully estimate your annual childcare costs before electing your contribution amount.

Yes — payments to a nanny, au pair, or in-home caregiver for a qualifying dependent qualify for the Dependent Care FSA. However, you must report the caregiver's Social Security number on your tax return, and if you pay a household employee more than $2,800/year (2026), you may have "nanny tax" obligations (employer FICA, unemployment insurance).

A 529 plan is a tax-advantaged savings account designed for education expenses. Contributions are made with after-tax dollars (no federal deduction), but the account grows tax-free and qualified withdrawals for education expenses are completely tax-free. More than 30 states offer a state income tax deduction or credit for contributions to their state's 529 plan.

Qualified expenses include tuition, fees, books, supplies, and room and board at accredited colleges and universities. K-12 tuition (up to $10,000/year) also qualifies. Apprenticeship programs and student loan repayment (up to $10,000 lifetime per beneficiary) are also qualified uses. Non-qualified withdrawals are subject to income tax plus a 10% penalty on the earnings portion.

Yes — you can change the beneficiary to another member of the original beneficiary's family (siblings, parents, cousins, etc.) without tax consequences. If your child receives a scholarship or decides not to attend college, you can roll the funds to another family member's 529, use them for K-12 tuition, or roll up to $35,000 into a Roth IRA (subject to annual Roth contribution limits and a 15-year account seasoning requirement).

You can elect to treat a lump-sum 529 contribution as if it were made ratably over 5 years, allowing you to contribute up to $90,000 per beneficiary ($180,000 for married couples) in a single year without gift tax consequences. This is called the "superfunding" or "5-year election" and must be reported on Form 709. No additional gifts to the same beneficiary can be made during the 5-year period without gift tax implications.

Yes — 529 funds can be used for graduate and professional school (law school, medical school, MBA programs) at accredited institutions, just like undergraduate education. Tuition, fees, books, and room and board all qualify. There is no age limit on the beneficiary, so 529 plans can be used for adult education and career changes as well.

A Donor-Advised Fund (DAF) is a charitable giving account sponsored by a public charity (such as Fidelity Charitable or Schwab Charitable). You contribute cash, securities, or other assets to the DAF, receive an immediate tax deduction for the full contribution, and then recommend grants to qualified charities over time. The assets grow tax-free inside the DAF until distributed.

Cash contributions to a DAF are deductible up to 60% of AGI. Contributions of appreciated securities are deductible at fair market value up to 30% of AGI. Excess contributions carry forward for up to 5 years. Unlike private foundations, DAFs have no minimum distribution requirement.

Bunching means contributing multiple years of planned charitable giving into a DAF in a single year to exceed the standard deduction threshold and itemize. For example, instead of donating $10,000/year for 5 years (which may not exceed the standard deduction), you contribute $50,000 in Year 1 to a DAF, take the full itemized deduction, and then distribute $10,000/year to charities from the DAF over the following 5 years.

Yes — and this is one of the most powerful aspects of a DAF. You can contribute long-term appreciated stock directly to the DAF, deduct the full fair market value (up to 30% of AGI), and avoid paying capital gains tax on the appreciation. The DAF can then sell the stock tax-free and invest the proceeds for future charitable distributions.

A DAF is simpler and cheaper to establish (no legal fees, no IRS approval), has no minimum distribution requirement, offers higher deduction limits, and provides anonymity for grants. A private foundation offers more control (you can hire family members, make program-related investments, and set your own grant criteria) but requires 5% annual distributions, has lower deduction limits, and faces excise taxes on investment income.

You can deduct up to $2,500 in student loan interest per year as an above-the-line deduction (you do not need to itemize). The deduction phases out between approximately $80,000 and $95,000 AGI for single filers, and between $160,000 and $190,000 for married filing jointly in 2026. The deduction reduces your AGI, which can improve eligibility for other tax benefits.

No — the student loan interest deduction is an above-the-line deduction claimed on Schedule 1, which reduces your AGI regardless of whether you take the standard deduction or itemize. This makes it available to virtually all qualifying borrowers.

If your parents paid your student loan interest and you are claimed as their dependent, neither you nor your parents can deduct the interest. However, if your parents paid the interest but you are not their dependent, you can deduct it as if you paid it yourself — the IRS treats this as a gift from your parents to you, which you then used to pay the loan.

The loan must have been taken out solely to pay qualified higher education expenses (tuition, fees, room and board, books, supplies) for you, your spouse, or a dependent. Both federal and private student loans qualify. Loans from family members or employer plans generally do not qualify.

Yes — you can deduct the interest portion of your payments regardless of which repayment plan you are on. Your loan servicer will send you Form 1098-E each year showing the total interest paid. Even if your payments are low under an income-driven plan, any interest you do pay is deductible up to the $2,500 limit.

A 1031 exchange allows you to sell an investment property and defer all capital gains taxes by reinvesting the proceeds into a like-kind replacement property. You must identify the replacement property within 45 days and close within 180 days, using a qualified intermediary to hold the funds.

Yes. Residential rental properties, commercial buildings, raw land, and even some types of personal property qualify. The property must be held for investment or business use — your primary residence does not qualify.

The deferred gain carries forward into the replacement property's adjusted basis. You can continue deferring it through a chain of 1031 exchanges. If you hold the property until death, heirs receive a step-up in basis and the deferred gain is eliminated entirely.

After selling your relinquished property, you have exactly 45 calendar days to identify up to three potential replacement properties in writing. Missing this deadline disqualifies the entire exchange and makes the full gain taxable immediately.

Yes — "like-kind" is broadly defined for real estate. You can exchange a single-family rental for a commercial building, raw land, or a multi-family property. The key is that both properties must be held for investment or business use.

When you inherit an asset, your cost basis is "stepped up" to the fair market value on the date of the decedent's death (or an alternate valuation date 6 months later). This means all appreciation during the decedent's lifetime is permanently erased for capital gains purposes. If you sell the asset immediately after inheriting it, you owe zero capital gains tax on the lifetime appreciation.

Most capital assets that pass through an estate receive a step-up: stocks, bonds, mutual funds, real estate, business interests, and collectibles. Assets held in IRAs and 401(k)s do not receive a step-up — they are subject to ordinary income tax when withdrawn. Assets in irrevocable trusts may or may not receive a step-up depending on how the trust is structured.

In community property states (California, Texas, Arizona, Nevada, Washington, Idaho, Louisiana, New Mexico, Wisconsin), both halves of community property receive a step-up in basis when one spouse dies — not just the deceased spouse's half. This is a significant advantage over common law states, where only the deceased spouse's share receives the step-up.

For very large embedded gains, holding appreciated assets until death can eliminate the capital gains tax entirely through the step-up in basis. However, this strategy must be weighed against estate tax exposure (if the estate exceeds the exemption), liquidity needs, and the opportunity cost of holding a concentrated position. Uncle Kam can model the tradeoffs for your specific situation.

Yes — donating appreciated assets to a qualified charity or Donor-Advised Fund eliminates the capital gains tax and generates a charitable deduction for the full fair market value. This is often more tax-efficient than holding until death (which avoids capital gains but may trigger estate tax) or selling and donating cash (which triggers capital gains before the donation).