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Depreciation recapture taxes deductions you already took. Section 1250 real estate gain is capped at 25%, while Section 1245 property is taxed as ordinary income.

A cost segregation study moves 5, 7, and 15-year building components out of the 39-year schedule so they qualify for 100% bonus depreciation in year one.

A 1031 exchange defers tax on investment real estate, but only if you identify replacement property within 45 days and close within 180 days. No extensions.

If average guest stays are 7 days or less and you materially participate, short-term rental losses can be non-passive and offset W-2 income in 2026.

Both cap at $72,000 in 2026, but a solo 401(k) adds a $24,500 employee deferral on top of the employer piece, so it usually wins below $288,000 of pay.

By Income Tax Service Editorial — Reviewed by Diyan Yap, EA (IRS Enrolled Agent) — Updated July 19, 2026 Quick answer: For 2026, the standard deduction is $32,200 for married couples filing jointly, $16,100 for single filers, and $24,150 for heads of household. All seven federal tax rates stay the same (10% to 37%), but … Read more

By Income Tax Service Editorial — Reviewed by Diyan Yap, EA (IRS Enrolled Agent) — Updated July 19, 2026 Quick answer: “No tax on tips” is a deduction, not a total exemption. For 2025 through 2028, tipped workers can deduct up to $25,000 of qualified tips a year, taken above the line so you get … Read more

By Income Tax Service Editorial — Reviewed by Diyan Yap, EA (IRS Enrolled Agent) — Updated July 19, 2026 Quick answer: Overtime is still taxed — but from 2025 through 2028, workers can deduct the premium portion of their overtime pay (the extra “half” in time-and-a-half), up to $12,500 per year ($25,000 for joint filers). … Read more

By Income Tax Service Editorial — Reviewed by Diyan Yap, EA (IRS Enrolled Agent) — Updated July 19, 2026 Quick answer: From 2025 through 2028, taxpayers age 65 and older can claim an extra $6,000 deduction per person — $12,000 for a couple where both spouses qualify. It stacks on top of the standard deduction … Read more

By Income Tax Service Editorial — Reviewed by Diyan Yap, EA (IRS Enrolled Agent) — Updated July 19, 2026 Quick answer: The cap on deducting state and local taxes (SALT) rose from $10,000 to $40,000 starting with 2025 returns ($20,000 if married filing separately), and it’s inflation-indexed through 2029. High earners phase back down: above … Read more