J. Chad McLamb, CPA, 132 Bexley Way, Clayton, NC (2026)

08/23/2026

Happy weekend everyone!! I hope everything is going well for you.

We’re back for week 4 (of 6) where I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started.

As always, if you’d like to see Parts 1, 2 and 3 of this series, or any of my previous tips, visit our page at J. Chad McLamb, CPA.

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 4 (of 6)

Tax tip 8/22/2026

August isn’t just for the hot weather, beach trips and the beginning of college football season. It’s also a good time to think about ways to cut your 2026 individual and business tax bill. Here are 6 (3 individual and 3 business) tax planning strategies to consider.

INDIVIDUAL

1. Consider Year-End Donations

You can accelerate contributions planned for 2027 into 2026, but you must charge them or mail the checks by December 31st to ensure a write-off. Try to make your donations with appreciated stock are ones that you’ve owned for over a year. This way, you can deduct the full value and never pay capital gains tax on the appreciation.

2. Check Your Health Flexible Spending Account (FSA)

You must clean it out by December 31 if your employer hasn’t implemented the 2 1/2-month grace period or the $680 carryover rule. Otherwise, you will forfeit any money left in your account. Also, consider electing to contribute to a health FSA for 2026. You can contribute up to $3,400 to your employer’s health FSA to cover out-of-pocket medical expenses. Amounts contributed to an FSA escape federal income tax as well as payroll taxes.

3. Child Tax Credit

For 2026, the child credit for each “Qualifying Child” who had not reached age 17 by the end of the tax year is $2,200. The income phase-out thresholds remain unchanged and begin phasing out as the individual’s modified adjusted gross income (MAGI) exceeds $400,000 on a joint return and $200,000 for all other returns.

The refundable portion of the child credit also remains at $1,700. A “refundable” credit generally means to the extent the credit exceeds the taxes you would otherwise owe with your individual income tax return without the credit, the IRS will refund the excess to you.

BUSINESS

1. Establish Benefit Plans for Your Employees

Want to attract and retain great employees while also lowering your overall tax burden?

Offer benefit plans!

Here are some of the common employee benefit plans offered by some small businesses:

* Health insurance: While not a direct tax deduction, some small businesses may qualify for a tax credit for offering health insurance to employees.
* Life insurance: Some employer-sponsored life insurance plans can be tax-deductible.
* Retirement plans: Employer contributions to a traditional 401(k) are tax-deductible for the business. Additionally, contributions to a Simple IRA or SEP IRA are tax-deductible for the employer.
* Commuter benefits: Providing commuter benefits, such as parking passes or public transit reimbursement can be tax-deductible to your business.

2. Donate Appreciated Property

Donating appreciated property to a qualified charity can lower your business’s tax bill. Here’s how it works:
When assets, like stock, are donated to a qualified charity, the deduction is equal to the current fair market value of the property, not what you paid for it.
So you could have a $10 stock you purchased worth $1,000 today that would give you a $1,000 deduction vs the $10 you originally spent on it.
Just make sure you keep meticulous records of any donations you make and that you’re aware of available deduction limitations in a tax year.

3. File Your End-Of-Year Tax Forms

Although your actual business tax forms aren’t required to be filed until the tax deadline in April, some relevant forms should be filed by the end of the year for optimal tax savings.
The specific forms filed will depend on your business structure and whether or not you have employees, but here are some of the most common ones filed (for example by coaches and consultants):

* Form W-2: If your business has employees, you need to provide them with Form W-2, reporting their wages, tips, and other compensation, as well as taxes withheld.
* Form 1040 Schedule C: Sole proprietors and single-member LLCs typically use this form to report business income and expenses. It’s attached to the owner’s personal income tax return (Form 1040).
* Form 1099-MISC: If your business paid $600 or more to a contractor, freelancer, or other non-employee during the year, you need to issue them a Form 1099-MISC to report the payments.
* Form 941: Also known as quarterly tax payments, small business owners must file Form 941 quarterly to report and pay estimated income taxes, Social Security tax, and Medicare tax.

BONUS: End-of-year financial statements, including the balance sheet and income statement, provide valuable insights into the financial health of your business. This information is essential for financial planning, budgeting, and making informed business decisions as you transition to a new year. It’s a good idea to schedule a consultation with your CPA or financial advisor to review your business financial statements to decide if any year end decisions need to be made to improve your tax situation.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for part 5 of individual and business tax planning tips for 2026!

We hope you have a great week!

J. Chad McLamb, CPA

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

08/15/2026

Happy weekend everyone!! I hope everything is going well for you.

We’re back for week 3 of 6 where I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started.

As always, if you’d like to see Parts 1 and 2 of this series, or any of my previous tips, visit our page at J. Chad McLamb, CPA.

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 3 (of 6)

Tax tip 8/15/2026

August isn’t just for the beginning of the college football season. It’s also a good time to think about ways to cut your 2026 individual and business tax bill. Here are 6 (3 individual and 3 business) tax planning strategies to consider.

INDIVIDUAL

1. Convert Traditional IRA to Roth IRA

If your traditional IRA has dropped in value or you expect to pay higher federal income tax rates in future years, you might want to consider converting all or part of your traditional IRA balance into a Roth IRA. Here’s why: If you convert, it will trigger a current tax hit on the amount you convert. But, with your traditional IRA balance at a depressed level (and possibly your overall income too) the tax hit will be less. After the conversion, all the income and gains that accumulate in your Roth IRA, and all withdrawals after you reach age 59 1/2, will be totally free of any federal taxes—assuming you meet the tax-free withdrawal rules. In contrast, future withdrawals from a traditional IRA could be hit with tax rates that are higher than today’s rates.

Of course, conversion is not a no-brainer. You have to be satisfied that paying the upfront conversion tax bill makes sense in your circumstance. In particular, converting a big account all at once could push you into higher tax brackets, which would not be good. You must also make assumptions about future tax rates, how long you will leave the account untouched, the rate of return earned on your Roth IRA investments, and so forth. If the Roth IRA conversion idea intrigues you, contact your CPA for a full analysis of the tax consequences.

2. Retirement Account Contributions

You may want to consider increasing contributions to your Roth, traditional IRA, or other retirement savings account. The table below provides information on the contribution limits for 2026, **which can be made through April 15, 2027.**

— Maximum IRA contribution (traditional or Roth): $7,500
— Maximum IRA contribution if age 50+: $8,600
— Maximum 401(k) salary-deferral contribution: $24,500
— Maximum 401(k) contribution if age 50-59 and 64+: $32,500
— Maximum 401(k) contribution if age 60-63: $35,750
— Maximum 403 (b) salary-deferral contribution: $24,500
— Maximum 403 (b) contribution if age 50-59 and 64+: $32,500
— Maximum 403 (b) contribution if age 60-63: $35,750
— Maximum SEP account contribution: $72,000 or 25% of eligible employee compensation
— Maximum profit-sharing
account contribution: $72,000 or 100% of eligible employee compensation
— Maximum SIMPLE IRA salary-deferral contribution: $17,000
— Maximum SIMPLE
contribution if age 50-59 and 64+: $21,000
— Maximum SIMPLE
contribution if age 60-63: $22,250

3. Increased Standard Deduction

In 2026 the Standard Deduction increased to the following levels:

— Joint Return – $32,200;
— Single – $16,100;
— Head of Household – $24,150;
— Married Filing Separately - $16,100;
— Qualifying Surviving Spouse - $32,200.

The increased standard deduction, combined with changes to Itemized Deductions, may make it difficult to itemize going forward. You may want to consider bunching two years of anticipated charitable contributions into one year. Alternatively, you can consider setting up a Donor Advised Fund GS1 into which you can make tax deductible charitable contributions and can direct the funds to your specific charities over the course of time.

BUSINESS

1. Vehicle Write-Offs and Upgrades

Do you sometimes use your vehicle for business purposes? If so, you can deduct a percentage of your vehicle ownership and maintenance.
If your vehicle is used 100% for your business, you can deduct the entire cost of ownership and maintenance.
Cost of ownership and maintenance can include things like vehicle depreciation, gas, oil changes and other maintenance, repairs, insurance, registration fees, lease payments, loan interest, and tolls.
Just remember that proper documentation of mileage is required to take any vehicle deductions for your business.

2. Take Advantage of Accelerated Depreciation

Some business purchases can qualify for accelerated depreciation, such as bonus depreciation and Section 179.
Here’s how it works: instead of spreading out depreciation deductions over several years, accelerated depreciation lets you claim a large expense on your taxes in the same year you make the purchase.
Say you buy a new Macbook for your business. You could claim depreciation of the computer over the course of its “useful life” as defined by the IRS. Or you could write-off 100% of your purchase in a single tax year, keeping more hard-earned money in your business.
Current bonus depreciation has reverted to 100% because the Taxpayer Relief for American Families and Workers Act has been signed into law.
Section 179 allows qualifying property to be depreciated up to 100% in its first-year of service subject to some exceptions.

3. Revisit Your Retirement Plan

Even if you’re already investing in tax-advantaged retirement accounts, revisiting your strategy from time-to-time can ensure you’re gaining the maximum benefit.
Here are some retirement plan options that may help you save on business taxes:
— Solo 401(k) or Self-Employed 401(k): Designed for self-employed people without employees, these retirement accounts allow tax-deductible contributions with high contribution limits.
— Traditional IRA: Although not a direct method for saving on business taxes, traditional IRA contributions are tax deductible from your personal income tax in the year you make them.
— Roth IRA: Self-employed business owners can contribute to an IRA up to a certain amount depending on their income levels.
— Health Savings Account (HSA): While not a traditional retirement plan, contributing to an HSA can provide tax advantages. Contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free.
**Before choosing a retirement plan, consider consulting with a financial advisor or tax professional to determine which plan aligns best with your business goals and financial situation.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for part 4 of individual and business tax planning tips for 2026!

We hope you have a great week!

J. Chad McLamb, CPA

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

08/08/2026

Hey guys and gals!! I hope your weekend is going well.

We’re back for week 2 of 6 where I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started.

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 2 (of 6)

Tax tip 8/8/2026

August isn’t just for cookouts and baseball. It’s also a good time to think about ways to cut your 2026 individual and business tax bill. Here are 6 (3 individual and 3 business) tax planning strategies to consider.

INDIVIDUAL

1. Realize Losses on Stock

You can take losses on stock while substantially preserving your investment position. There are several ways this can be done. For example, you can sell the original holding, and then buy back the same securities at least 31 days later. Or, if you own a fund (such as an index fund), you can sell it, and buy a similar fund right away while still claiming the loss. This works great with index funds, because as long as you buy a fund of the same index, it contains all the same securities.

2. Consider a Health Savings Account (HSA)

HSAs allow you to pay for certain medical expenses on a pretax basis. If you meet certain requirements for 2026, your HSA contribution can be up to $8,750 for family coverage and $4,400 for single coverage (plus an additional $1,000 if you’re 55 or older) and can be made regardless of your income level. These contributions are 100% tax deductible above-the-line, so you benefit even if you don’t itemize or are subject to high-income itemized deduction phase outs. You can then take tax-free withdrawals to pay uninsured medical expenses. A provision of the CARES Act now allows withdrawals to be made tax-free to pay for the cost of over-the-counter medications, retroactive to January 1, 2020. Withdrawals not used for medical expenses are taxable and if taken before age 65 are subject to a 20% penalty tax. After age 65, withdrawals are taxed as ordinary income. In the meantime, they can build tax-free. It is also important to note that 2026 deductible HSA contributions can be contributed until April 15, 2027.

3. Consider Contributing to 401(k) Plans that Accept Roth 401(k) Contributions

Earnings on funds in a Roth IRA grow tax-free (as opposed to merely tax deferred as in a traditional IRA or 401(k) plan). However, higher-income taxpayers are ineligible to make Roth IRA contributions. Currently, taxpayers covered by a 401(k) plan will be able to designate some or all of their 401(k) contributions as Roth 401(k) contributions. Thus, they will be able to take advantage of tax-free growth in their retirement account just like those who are able to contribute to Roth IRAs. The 2026 contribution limit for Roth 401(k) plans is $24,500 ($32,500 from 50-59, $35,750 from 60-63 and $32?500 m if age 64 or older), which is much higher than the $7,500 ($8,600 if age 50 or older) limit on Roth IRA contributions.

**One Caution:** Unlike “regular” 401(k) contributions, contributions that you designate as Roth 401(k) contributions are taxed to you the year they’re made. But the benefit of tax-free earnings and distributions on those contributions (provided they’re held in the plan for a certain amount of time) will often outweigh the tax-deferral on a regular 401(k) plan contribution. This is especially true if your tax rate is higher when you withdraw the money from your 401(k) plan than it was when the funds were contributed (which could be the case given the current federal deficit picture).

BUSINESS

1. Recognizing Losses

Business decisions don’t always work out the way you envision, which is why we’re glad that recognizing losses for tax purposes is a way to lower your tax burden.
Recognizing a loss happens when you sell something for less than you paid for it – think business property or assets like office equipment or vehicles–and you write off the amount of money “lost” in the transaction.
Although losing money on a transaction isn’t great, you can use your loss to offset other financial gains, lowering your overall tax bill.
Note: Losses for personal property are not deductible.

2. Home Office Upgrades
Look, we get it. Having a tax pro tell you that you just have to upgrade your home office to lower your taxes is terrible. (Can you hear our sarcasm through your computer or phone? 😂)
But really…
Have you been dying to trade in your crappy Office Depot chair for the Herman Miller Aeron you’ve been lusting after for years?
Consider this sentence your stamp of approval. Just don’t forget to log and categorize your receipts.

3. Tech Upgrades
If you’re ready to buy your next laptop, printer, or that new project management software you’re dreaming about, do it!
As long as the new equipment is both ordinary and necessary, it should be tax deductible!!

Fortunately, no major tax law changes are expected this year. These tips cover just the tip of the tax planning iceberg for small businesses. Contact your tax advisor to discuss mid-year planning strategies to determine the right course of action based on your situation, or contact J. Chad McLamb, CPA for assistance.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for part 3 of individual and business tax planning tips for 2026!

We hope you have a great week!

J. Chad McLamb, CPA

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

08/01/2026

Hello ladies and gentlemen!! I hope your summer has been well.

Over the next 6 weeks, I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started. As for my practice, Lee, our office manager, has been busy booking clients for tax planning and the calendar is filling up fast! 😅

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 1 (of 6)

Tax tip 8/1/2026

Mid-July isn’t just for cookouts and baseball. It’s also a good time to think about ways to cut your 2026 individual and business tax bill. Here are 6 (3 individual and 3 business) tax planning strategies to consider.

INDIVIDUAL

1. Individual Income Tax Rates

Your so-called “ordinary” income (e.g., compensation, interest income, most retirement income, and net short-term capital gains) is taxed at increasing tax rates that apply to different ranges of income. In 2026, there are seven ordinary income tax brackets as follows: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Although all tax brackets have been retained, the income limits for each have been adjusted for inflation. Determining the overall tax impact on a particular individual or family in 2026 will be similar to 2025 in many ways due to the changes that were put in place by the Tax Cuts and Jobs Act (TCJA), such as:

* An increase in the standard deduction
* The elimination or limitation of certain itemized deductions
* Increases in the child tax credit
* Higher income phase-outs for the child credit
* A new credit for certain qualifying dependents

2. Minimize Tax on Capital Gains

Generally, when you sell stock or mutual fund shares, the shares you purchased first are considered sold first. That’s usually good news since it’s often beneficial to qualify for the lower long-term capital gain rate by selling shares that have been held more than one year. However, there may be situations where you’re better off selling shares other than those that have been held the longest. For example, the newer shares may have a higher cost-basis (because you paid a higher price for them) which would result in a smaller taxable gain or even a loss that can be netted against the gain. **Important** When you want to sell shares other than those you purchased first, you must properly notify your broker as to the specific shares you want sold.

3. Maximize Certain “Above the Line” Deductions

“Above-the-line” deductions reduce both your “adjusted gross income” (AGI) and your modified adjusted gross income (MAGI), while “itemized” deductions (i.e., below-the- line deductions) do not reduce either AGI or MAGI. Deductions that reduce your AGI (or MAGI) can potentially generate multiple tax benefits, for example by:

-> Reducing your taxable income and allowing you to be taxed in a lower tax bracket;

-> Freeing up deductions (and tax credits) that phase out as your AGI (or MAGI) increases (e.g., child credit; certain IRA contributions; certain education credits; adoption credit, etc.); and

-> Reducing your MAGI below the income thresholds for the 3.8% Net Investment Income Tax (i.e., 3.8 % NIIT only applies if MAGI exceeds $250,000 if married filing jointly; $200,000 if single or $125,000 if married filing separately).

Many of the popular “above-the-line” deductions were retained under the TCJA, such as deductions for IRA and Health Savings Account (HSA) contributions, health insurance premiums for self-employed individuals, qualified student loan interest, and business expenses for a self-employed individual.

BUSINESS

1. Maximize Your Deductions

Sure, you can deduct your office supplies and your work laptop. But did you know you can deduct things like loan interest, insurance, air travel fees, and continuing education?

2. Defer Taxable Income

Did you know you can delay paying taxes on some forms of income?
By deferring paying taxes until a later date, you can potentially take advantage of lower tax rates in the future. This strategy can also be used simply to lower your tax burden in a particular year, making your tax payment more manageable.
The most common way this strategy is used is by contributing to qualifying retirement accounts such as 401(k)s and IRAs. Taxes on these accounts are typically paid when withdrawals are made in retirement.

3. Accelerate Paying Certain Expenses

Accelerating your expenses for tax purposes is like hitting the fast-forward button on some of your costs to save money on your taxes.
Instead of spreading out deductions over time, you bring forward certain expenses, paying for some things upfront or by using quicker depreciation methods for business assets.
By doing this, you get to shrink your taxable income now, which means less money going to the IRS.
A few deductions that are commonly accelerated for tax purposes include:
* insurance premiums
* rent
* charitable contributions
* subscriptions
* business startup costs

Keep in mind that these expenses are limited to purchases that can be used within a 12-month period.
So if you prepay an annual subscription to a project management platform you can take the deduction in full. But if you prepay for 3 years, you can only deduct a single year’s value of the expense.

Fortunately, no major tax law changes are expected this year. These tips cover just the tip of the tax planning iceberg for small businesses. Contact your tax advisor to discuss mid-year planning strategies to determine the right course of action based on your situation, or contact J. Chad McLamb, CPA for assistance.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for part 2 of individual and business tax planning tips for 2026!

We hope you have a great week!

J. Chad McLamb, CPA

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

07/25/2026

Hey ladies and gents! I hope you’re staying dry during this rainy weekend!! We’re back for Part 2 of this mini series in which we discuss 10 tax law changes from 2025 to 2026. If you missed Part 1 of this series, any of my previous tips, feel free to visit my page at J. Chad McLamb, CPA.

10 Tax Changes for 2026 (Part 2) 7/25/2026

6. New Rules for Inherited IRAs

If you inherited an IRA recently, new rules for inherited IRAs went into effect last year that could affect what you do with these assets.

The original SECURE Act, passed in 2019, eliminated the so-called “stretch IRA” in favor of a 10-year period before IRAs must be fully distributed, with RMDs potentially being required throughout this period. It also tacked on many other potentially confusing new rules for inherited accounts, but delayed penalties for the failure to take RMDs for tax years 2020 through 2025. Previously, a younger beneficiary of an IRA was able to take RMDs based on their own life expectancy rather than the original owner’s, potentially allowing for many more years of tax-deferred growth.

Generally speaking, starting December 31, 2025, funds must be distributed within 10 years of the original owner’s death if you are a non-spouse beneficiary and do not qualify as an eligible designated beneficiary.

Please Note: The rules did not change for spouses of the original owner as well as for IRA beneficiaries who inherited prior to 2020. Neither is required to empty an account within 10 years. Different rules may apply to those considered eligible designated beneficiaries.

Consider consult with your CPA because the first step might be to understand whether your circumstances require you take distributions from the account within 10 years.

Remember, penalties can be steep, equaling 25% of the missed RMD amount, or 10% if corrected in a timely manner. It’s always a good idea to consult with a tax professional to understand how the new rules might affect your own situation.

7. Prepare for changes in Estate Tax rules

2026 is a great time to start thinking about estate taxes and creating a gifting plan. The lifetime gift and estate tax exclusions, which have more than doubled since 2017, increase to $15 million for single filers from $13.99 million and to $30 million from $27.98 million for those who are married filing jointly. Going forward, the exclusions will be indexed for inflation.

Annual gifting can help reduce the value of your estate without using up your lifetime gift and estate tax exemption. The annual gift tax exclusion remains $19,000 in 2026. That means you can give up to $19,000 per donor to as many people as you like each year without affecting your lifetime exemption. If you're married and elect to split gifts, each person in the couple can gift this amount without the gift being considered taxable.

You might also consider funding a 529 or custodial account for children in your life. While lifetime contribution limits to 529 accounts are set by states and are often quite high, remember annual contributions over $19,000 will be considered a taxable gift and count against your lifetime gift tax exclusion. But once inside the account, the money is not considered part of your estate. You can also think about front-loading 5 years' worth of annual gifts of up to $19,000 at once in 2025, for a total of up to $95,000 per person, per beneficiary without having to pay gift tax or interfere with the lifetime gift tax exclusion. However, after that, you won’t be able to make gifts under the annual exclusion to the same beneficiary for 5 years. You can also contribute to a custodial account, known as an UGMA/UTMA account. While such accounts are the property of the beneficiary once you set one up, the assets are considered part of the donor’s estate until the beneficiary is no longer a minor and takes control of them.

Donations to a qualified charity can also potentially lower the value of your estate while helping your tax planning in the year you’re donating. For example, if you itemize you can contribute to a donor-advised fund (DAF) and receive an income tax deduction. When you die, federal law allows your estate to take unlimited deductions of contributions to qualified charities. During your lifetime, you can also donate highly appreciated assets held longer than a year and deduct the fair market value without having to pay the capital gains tax.

***Note: If the goal is to avoid capital gains, your beneficiaries could receive a step-up in basis upon inheriting the assets.***

Deducting charitable contributions may be subject to adjusted gross income (AGI) limits depending on the receiving charity and what you donated.

8. Accurately Report Digital Assets

Rules involving cryptocurrency and other digital assets are still evolving, and transactions involving them may affect your tax planning this year.

Starting January 1, 2025, brokers have been required to report transactions involving digital currency on a new IRS Form 1099-DAOpens in a new window. Nevertheless, you must still report payment, gifts, and other transactions involving digital currency, non-fungible tokens, and stablecoins on your Form 1040, 1040-NR, or 1040-SR. Capital gains are reported on Schedule D (Form 1040). It's likely you'll need to complete Form 8949 first to complete Schedule D accurately.

Be sure to work with a tax accountant/CPA who can help you stay on top of regulatory changes.

9. Be aware that some home energy tax credits and incentives for residential energy improvements have ended

While many residential clean energy credits embedded in the Inflation Reduction Act (IRA) of 2022 were scheduled to phase out between 2032 and 2034, the new tax legislation ended them early. Generally, the credits fell into 2 categories, either to make homes more energy efficient or for clean energy upgrades. Projects must have been “completed” and in service by December 31, 2025, to claim any credits or incentives for tax-year 2025.

10. New option to roll 529 funds into a Roth IRA

529 account holders can transfer up to a lifetime limit of $35,000 to a Roth IRA established for a 529 designated beneficiary. Conversions are tax- and penalty-free, although a number of important conditions apply. Among them,
- The 529 account must be maintained for the 529 designated beneficiary for at least 15 years
- The transfer amount must come from contributions made to the 529 account at least 5 years prior to the 529-to-Roth IRA transfer date, and transfers are subject to annual Roth IRA contribution limits.

For 2026, a 529 beneficiary owner may transfer up to $7,500 annually until they reach the $35,000 lifetime maximum. Unlike regular Roth contributions, which have modified adjusted gross income limitations, 529-to-Roth IRA transfers do not appear to be subject to this limitation at this time. The IRS has not issued guidance on the 529-to-Roth IRA provision in the SECURE 2.0 Act but is anticipated to do so in the future. Based on forthcoming guidance, it may be necessary to change or modify some 529-to-Roth IRA transfer requirements.

I’ll see yall next week for another tax tip. I hope these tax tips help you and your family or your business navigate complex tax issues. If you have any tax topics you’d like me to discuss, please let me know by commenting on this post, calling or emailing me or by visiting my website at

https://chadmclamb3.wixsite.com/chadmclambcpa

I hope you have a wonderful weekend!!

Thank you so much!

J. Chad McLamb, CPA

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

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132 Bexley Way
Clayton, NC
27527

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https://chadmclamb3.wixsite.com/chadmclambcpa

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