New federal disaster tax legislation expands deductions for qualifying casualty losses and excludes certain wildfire relief payments from taxable income. Learn how Public Law 119-108 affects 2025 and 2026 disaster losses, wildfire settlements, deduction limits, California taxes, and the October 15, 2026, election deadline.

Revenue Ruling 2026-20 treats a specific Section 351 ETF conversion involving appreciated securities as a taxable exchange. Learn how the ruling applies, which ETF transactions it does not address, and what Notice 2026-62 means for investors considering portfolio diversification strategies.

Treasury has automatically established Trump Accounts for eligible children, changing the process families originally expected to follow through Form 4547. Learn how claiming an account works, why the $1,000 federal contribution still requires separate action, and how family, employer, and charitable contributions are treated.

Section 1062 allows qualifying farmland sellers to spread the federal income tax attributable to certain sales over four annual payments. New proposed regulations explain the 10 year farm use test, qualified farmer requirement, required covenant, filing rules, Section 453 interaction, and other planning considerations. California does not conform to the federal election.

Beginning in 2027, qualifying scholarship donations can generate a dollar for dollar federal tax credit. New Treasury rules may allow married couples filing jointly to claim up to $3,400.

A trust can sell appreciated assets and distribute the cash without automatically shifting the capital gain to the beneficiary. Learn when capital gains stay taxable to the trust, when they enter distributable net income, and what trustees and beneficiaries should review before a distribution.

Moving out of California before exercising stock options does not necessarily end California tax. Learn how California sources option income to prior California services and how the rules differ for nonstatutory options, incentive stock options, ESPPs, capital gains, and alternative minimum tax.

Business owners can owe California tax even when the company is organized elsewhere or the owner lives outside California. Learn how residency, nexus, market sourcing, Schedule K 1 income, apportionment, PTE tax, and other state tax credits interact.

Moving out of California does not necessarily end California income tax. Learn how California determines residency, domicile, part year status, and California source income, including wages, business income, investments, real estate, and income received after a move.

An IRS CP14 notice demands payment of an assessed tax balance, but the amount should be verified before you pay or enter a payment arrangement. Missing payments, incorrect tax year applications, prior adjustments, penalties, and interest can all affect the balance.

An IRS CP2000 notice proposes changes when third party tax information does not match a filed return. Before agreeing or paying, determine whether the IRS correctly accounted for basis, expenses, prior reporting, corrected information, penalties, and the actual tax treatment of the transaction.

Estate administration expenses are not automatically Form 1041 deductions. Learn when executor, attorney, CPA, appraisal, property, and selling costs belong on Form 1041 or Form 706 and how the Section 642(g) waiver prevents double deductions.

Some income remains taxable even after the person who earned it dies. Learn how IRD rules apply to inherited IRAs, unpaid wages, business receivables, installment sales, estate Form 1041 reporting, beneficiaries, and the Section 691(c) deduction.

After someone dies, the final Form 1040, estate Form 1041, and Form 706 serve very different purposes. Learn who reports income after death, when an estate needs an EIN, how beneficiary K-1s work, and which filing deadlines may apply.

Inherited property often receives a new tax basis at death, but the result depends on ownership, fair market value, community property, joint tenancy, rental use, and important exceptions. Learn how to establish and document basis before the property is sold.

California trust taxation depends on source income, trustee and beneficiary residency, beneficiary rights, DNI, and accumulated income. Learn how FTB Legal Ruling 2026-01 affects discretionary trusts and California beneficiaries.

California Proposition 19 can limit property tax reassessment when a child inherits a parent's principal residence, but residence, filing, and value cap rules apply. The current adjustment is $1,044,586 for transfers through February 15, 2027.

A missed Form 706 portability deadline does not always eliminate a deceased spouse's unused exclusion. Learn when Rev. Proc. 2022-32 provides five year relief and when a private letter ruling may still be available.

Trust distributions are not automatically taxable or tax free. Learn how DNI, principal, capital gains, Schedule K-1, the 65 day election, and property distributions determine who pays the tax.

A Section 645 election can treat a qualified revocable trust as part of a decedent's estate for income tax purposes. Learn about Form 8855, estate fiscal years, EIN requirements, filing deadlines, and what happens when the election ends.