#tax
Tax strategies, planning, and compliance for individuals and businesses
For 2026, the federal Adoption Tax Credit is worth up to $17,670 per child, with $5,120 now refundable. A field guide to Form 8839, qualified expenses, the special-needs rule, failed adoptions, the MAGI phase-out, and the five-year carryforward.
For tax year 2026, the federal Adoption Tax Credit caps at $17,670 per eligible child, with up to $5,120 refundable and a five-year carryforward on the nonrefundable remainder. This guide explains Form 8839, the timing rules for domestic, foreign, special needs, and failed adoptions, MAGI phase-out between $265,080 and $305,080, and how to coordinate with employer-provided adoption assistance under Section 137.
How private-company controllers build the ASC 740 income tax provision—current and deferred components, valuation allowances, UTBs, and the new ASU 2023-09 disclosures that take effect for fiscal years beginning after December 15, 2025.
How private company controllers can build a clean ASC 740 income tax provision in 2026 — current and deferred tax, Schedule M-1 reconciliation, valuation allowances, uncertain tax positions, and the new ASU 2023-09 disaggregated income-taxes-paid and qualitative rate disclosures.
Kickstarter and Indiegogo proceeds are business income reported on Schedule C, while GoFundMe donations may be tax-free gifts only if they pass the IRS detached and disinterested generosity test. The OBBBA reset the Form 1099-K threshold to $20,000 and 200 transactions for tax year 2026, but the reporting rule does not change what counts as taxable income.
For 2026, ALEs face a $3,340 per-employee 4980H(a) penalty and a $5,010 per-employee 4980H(b) penalty, with affordability set at 9.96 percent of pay. This guide covers the FPL, W-2, and rate-of-pay safe harbors, line-by-line Form 1095-C coding, and the errors that drive Letter 226-J assessments.
Form 6166 is the IRS-issued certificate of U.S. tax residency that unlocks reduced foreign withholding under bilateral tax treaties. Apply with Form 8802 — $85 for individuals, $185 for entities — and one filing covers unlimited countries and certificates, often saving five or six figures per cross-border contract.
A practical walk-through of reporting installment sales on Form 6252 under IRC Section 453 — computing the gross profit percentage, why depreciation recapture is taxed in year one, the 453A interest charge on notes above the $5M aggregate threshold, the two-year related-party resale rule, and when electing out beats deferring gain.
When a partner sells an LLC or partnership interest, Section 751 can recharacterize a large share of the gain as ordinary income taxed up to 37 percent. Form 8308 is the partnership's required disclosure of that hot-asset gain on Form 1065, with a January 31 furnishing leg and a return-due-date filing leg in 2026.
Selling a partnership interest can convert expected capital gain into ordinary income under Section 751, raising the federal tax bill on the recharacterized slice from 23.8 percent to 37 percent. This guide explains Form 8308, hot-asset categories, the January 31 partner statement deadline, and what sellers, buyers, and partnership administrators need to do for 2025 and 2026 transfers.
Form 6166 is the IRS letter that lets U.S. taxpayers claim treaty rates on foreign royalties, dividends, and services. This guide walks through the Form 8802 application, eligibility rules, common rejection traps, and the timing required to get withholding right at the source.
Section 877A treats covered expatriates as if they sold every asset the day before leaving the United States. For 2026 the net-tax threshold is $211,000, the net-worth test sits at $2 million, and the gain exclusion is $910,000 — here is how Form 8854 decides whether you pay.
