Wolff & Taylor, P.C.

03/31/2026

Eligible taxpayers holding 💸 digital assets (such as cryptocurrency) through custodial brokers can continue using alternative methods to adequately identify units that are sold, disposed of or transferred — for now.

Under Notice 2026-20, the IRS has extended this relief for an additional year. It now applies to transactions made from Jan. 1, 2025, through Dec. 31, 2026. This extension helps prevent taxpayers from being forced to use the default first-in, first-out method while brokers are finalizing systems to process specific identification instructions.

🌐 If you buy, sell or transfer digital assets, accurate tax reporting and recordkeeping are essential.

03/29/2026

Artificial intelligence (AI) is changing how almost everything is done, including how fraud is committed. For example, a scammer might use AI to generate “deepfake” voices or “spoof” caller ID information to impersonate IRS agents. AI also makes it easier for perpetrators to establish robocall networks.

⚠️The IRS always stresses that it will contact taxpayers via U.S. mail about any tax issues. It won’t leave urgent voice messages or threaten arrest.

03/26/2026

Each year, you may be able to contribute up to the annual limit to a traditional or Roth IRA (or a combination of the two). The deadline for 2025 IRA contributions is April 15, 2026 — even if you file for an extension on your 2025 return.

You may be eligible to deduct all or part of your traditional IRA contribution and save taxes on your 2025 return. Roth IRA contributions aren’t deductible, but qualified withdrawals are tax-free. If you’re ineligible to make Roth IRA contributions or deduct traditional ones due to income-based phaseouts, a nondeductible traditional IRA contribution can be beneficial.

03/17/2026

03/13/2026

Net operating loss (NOL) deductions can be valuable tax breaks for eligible taxpayers. But the rules are hardly simple, and they’ve fluctuated over the last several years under various tax law changes. An NOL generally arises when business deductions exceed gross income. For pass-through entities, losses flow through to owners who claim NOL deductions on their individual returns. C corporations, on the other hand, deduct NOLs at the entity level. Under current law, most NOLs can’t be carried back, and they can offset only up to 80% of taxable income. However, they may be carried forward indefinitely, so it pays to use them judiciously.

Contact us 📞 for help optimizing your NOLs.

03/11/2026

The IRS has issued depreciation caps for “luxury” business vehicles placed in service in 2026.

🏎️The depreciation caps are: $20,300 for Year 1 (including bonus depreciation), $19,800 for Year 2, $11,900 for Year 3 and $7,160 for Year 4 through Year 6.

🏎️They apply to passenger cars and many SUVs, trucks and vans.

🏎️The IRS also announced lease inclusion amounts for lessees of these types of vehicles if first leased in 2026 and the vehicle’s fair market value when leased is more than $62,000.

🚐The depreciation caps and lease inclusion amounts don’t apply to SUVs, trucks or vans with a gross vehicle weight rating (GVWR) of more than 6,000 pounds.

03/11/2026

On March 6, the IRS issued proposed regulations addressing Trump Accounts (TAs), which were created under the One Big Beautiful Bill Act. TAs provide families with a new way to build savings for eligible children.

💲Contributions of up to $5,000 per year can be made beginning July 4.
💲Contributions aren’t deductible, but the accounts can grow tax-deferred.

The proposed regs detail the requirements for opening TAs and define key terms. They also explain who can open the accounts and who’ll manage them. In addition, they describe how the U.S. Treasury Secretary will administer the one-time $1,000 pilot program contribution for eligible children and related rules.

02/27/2026

Claiming the maximum depreciation deductions you can on your 2025 income tax return will generally provide the greatest 2025 tax savings. But sometimes it may be better to depreciate business assets over a period of years, such as if you expect to become subject to higher tax rates.

If you claim 100% bonus depreciation or Sec. 179 expensing today, you’re eliminating future depreciation deductions for those assets. And deductions save more tax when tax rates are higher. We can identify which depreciation breaks you’re eligible for, review your overall tax situation and help determine whether you should maximize depreciation-related breaks on your 2025 return.

02/26/2026

Married couples have a choice when filing their 2025 federal income tax returns. They can file jointly or separately.

What you choose will affect your standard deduction, eligibility for certain tax breaks, tax bracket and, ultimately, your tax liability. Typically, filing jointly saves💲tax compared to filing separately. This is especially true when the spouses have different income levels. Combining two incomes can bring some of the higher-earning spouse’s income into a lower⬇️tax bracket. Also, some tax breaks aren’t available to separate filers. But filing separately may save tax when one spouse has significant medical expenses.

📲Contact us to discuss your particular situation.

02/24/2026

One big decision to make when filing your individual income tax return is whether to claim the standard deduction or itemize.

Itemizing saves tax if total itemized deductions are larger than the standard deduction. If you paid more than $10,000 in state and local taxes (SALT) last year, you might save tax by itemizing on your 2025 return even if claiming the standard deduction has saved you more tax in recent years. This is because of a tax law change that increased the SALT deduction limit to $40,000 for 2025 ($20,000 for married couples filing separately). But an income-based limit could reduce your SALT deduction.

We can assess the impact of the SALT limit change on your tax situation.

02/10/2026

Do you have an IRS Individual Online Account? 🌐 If not, the IRS is encouraging you to create one.

Taxpayers with an account can securely access their tax information online. Specifically, you can view your balance, make payments, set up payment plans, access tax records and review prior notices without waiting on hold or mailing forms. Plus, the account can help protect you from identity theft and fraud. Having an account can also help reduce errors and surprises by allowing you to monitor activity in real time and respond quickly if issues arise.

For additional details and answers to frequently asked questions on Individual Online Accounts, visit https://bit.ly/4qlRGd8