211 tagged with "Tax Deductions"
Maximize tax deductions and reduce your tax liability legally
Schedule F Survival Guide: Crop Insurance Deferral, Section 1033(e) Livestock Sales, and Schedule J Income Averaging
Schedule F farm tax elections explained — crop insurance deferral under Section 451(f), weather-forced livestock replacement under Section 1033(e), Section 175 conservation deductions, the Section 464 prepaid-supply cap, the March 1 estimated-tax rule, and Schedule J three-year income averaging — with rules, deadlines, and worked examples.
Section 165(i) Disaster Loss Election: How Homeowners and Small Businesses Pull Casualty Refunds Forward One Year
Section 165(i) lets disaster-affected taxpayers deduct a current-year casualty loss on the prior year's return, turning an 8-to-16-week refund into rebuild cash. A practical guide to Form 4684, the six-month election deadline, the 2026 OBBBA changes, and the recordkeeping that holds up under IRS audit.
Section 165(i) Disaster Loss Election: Pulling Casualty Losses Into the Prior Year for a Faster Refund
How Section 165(i) lets taxpayers in federally declared disaster areas deduct casualty losses on the prior year's return via Form 4684 and Form 1040-X — election mechanics, the six-month deadline, safe-harbor valuations, and when the prior-year election actually beats waiting.
Section 199A QBI Aggregation Election Under Reg 1.199A-4: How Pass-Through Owners Combine Commonly Controlled Trades or Businesses to Beat the W-2 Wage and UBIA Limits
The Section 199A aggregation election under Reg 1.199A-4 lets pass-through owners combine commonly controlled trades or businesses before applying the W-2 wage and UBIA of qualified property limitation. This guide walks through the five eligibility tests, the Form 8995-A Schedule B disclosure, the irrevocable consistency rule, and when pooling QBI across an operating-and-leasing or multi-entity structure actually unlocks more deduction.
Section 274(n) and 274(o) in 2026: The 50% Business Meal Rule, the New Office-Snacks Cliff, and Audit-Proof Documentation
The OBBBA's new Section 274(o) eliminates the deduction for employer-provided office meals starting January 1, 2026, while Section 274(n)'s 50% rule still covers client and travel meals. Here is the full 50%/100%/0% map, the documentation auditors expect, and the four-account bookkeeping setup that keeps year-end clean.
Section 465 At-Risk Rules: Why Tax Basis Won't Save Your Partnership Losses
Section 465 at-risk rules disallow partnership and S-corp losses beyond your true economic exposure, even when tax basis is sufficient. This guide explains Form 6198, the qualified nonrecourse financing carve-out, recapture triggers, and why basis and at-risk amounts diverge.
Section 7702B Long-Term Care Insurance: Deduct Premiums, Trade Old Policies, and Keep the Estate Intact
Section 7702B defines tax-qualified long-term care insurance — age-indexed premium deductions up to $6,200 per person in 2026, tax-free benefits under the per diem cap, Section 1035 exchanges from old life or annuity contracts, and hybrid life-LTC structures for aging owners and retirees.
Section 7702B Qualified Long-Term Care Insurance: Age-Indexed Deductions, Hybrid Life-LTC Policies, and Section 1035 Exchanges
Section 7702B sets the federal rules that decide whether a long-term care policy delivers deductible premiums, tax-free benefits, and tax-free 1035 exchanges. This guide breaks down the 2026 age-indexed deduction limits, the $430 per-diem cap, hybrid life-LTC mechanics, and the planning patterns that move trapped cash value into care coverage without recognizing gain.
FDII to FDDEI: How C Corporations Cut Federal Tax to 14% on Form 8993 in 2026
Under OBBBA, Section 250 renames FDII to FDDEI, sets the deduction at 33.34%, eliminates the QBAI offset, and removes interest and R&E allocation — producing an effective 14% federal rate on qualifying foreign-derived income for U.S. C corporations filing Form 8993 in 2026.
FDII and Form 8993: How U.S. C Corporations Hit a 13.125% Effective Tax Rate on Foreign Sales
A working guide to the FDII (now FDDEI) deduction on Form 8993 — which U.S. C corporations qualify, how the Section 250 math drops the effective federal rate to 13.125% on foreign-derived income, the taxable income limitation, documentation the IRS expects, and how OBBBA simplifies the calculation starting in 2026 by removing the QBAI step and expense allocations.
Form 8283 Noncash Charitable Contributions: A Donor's Guide to the $5,000 Qualified Appraisal Threshold and IRS Substantiation Rules
Form 8283 is required when total noncash charitable contributions exceed $500. Above $5,000, donors need a USPAP-compliant qualified appraisal and three signatures on Section B; over $500,000 the full appraisal attaches to the return. Section 170(o) can claw the deduction back if the charity disposes of tangible property within three years, and the 40% gross valuation misstatement penalty has no reasonable-cause defense.
Form 8995 vs. Form 8995-A: Choosing the Right QBI Form for 2026
Form 8995 is a one-page worksheet; Form 8995-A is a four-part return with four schedules. The line between them in 2026 is $403,500 for joint filers and $201,750 for everyone else — and crossing it adds W-2 wage limits, SSTB phase-outs, and aggregation math to the return.