#tax
Tax strategies, planning, and compliance for individuals and businesses
Section 1092 defers a straddle loss up to the unrealized gain on the offsetting leg — close the loser alone and the deduction waits.
Personal use over 14 days or 10% of rental days makes your vacation home a residence under IRS rules — and caps rental deductions at rental income.
A 501(c)(6) business league earns IRS exemption by lifting a whole industry — unlimited lobbying included — but lobbying-linked dues are not deductible.
A DRIP reinvests your dividends into more shares automatically — but the IRS still taxes every dollar. How compounding, discounts, and cost basis work.
IRS audit rates run 0.1% for middle incomes but hit 4% above $10M — and Schedule C filers face triple the scrutiny of W-2 earners.
A teen with only W-2 wages owes no IRS income tax under $16,100 for 2026 — file anyway to reclaim withholding, and fund a Roth IRA with 0%-taxed dollars.
ISOs skip regular tax at exercise but trigger AMT; NQSO spreads land on your W-2 as IRS wages. Plus the $100k rule that converts ISOs to NQSOs.
Filing separately beats jointly when one spouse's medical bills clear the IRS 7.5% AGI floor or IDR loan payments drop — run both returns and compare.
Section 121 excludes home-sale gain up to $250,000/$500,000, but post-1997 home-office depreciation is carved out and taxed up to 25%.
Section 280A(g) excludes rent for 14 or fewer home-rental days — but the business deduction needs fair market rent, a business purpose, and a paper trail.
Form 945 reports all backup withholding and nonpayroll withholding once a year — due January 31, with EFT deposits once the year's tax reaches $2,500.
ISO exercises skip regular tax but can trigger AMT; NSO spreads land on your W-2 — IRS holding periods, withholding gaps, and the $100K limit.
