TaxStrategies News & Analysis
4 articles
Market Mood
Wealthy Americans Explore New Tax-Free Investment Options
Wealthy Americans are discovering new investment opportunities that provide tax-free benefits similar to Roth IRAs. These options appeal to high-net-worth individuals seeking to enhance their investment strategies. The trend is significant as it indicates a shift towards various tax-efficient strategies, potentially impacting market dynamics. Understanding these developments is crucial for ordinary investors, as they could influence investment choices and portfolio strategies moving forward.
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IRS Allows $19,000 Annual Gift Tax Exclusion for Family Loans
Parents can lend a child a down payment at the IRS applicable federal rate and forgive $19,000 annually without filing a gift tax return. Married couples can effectively forgive up to $76,000 in one year by stacking the gift tax exclusions. For 2026, the annual gift tax exclusion remains $19,000, as per IRS Revenue Procedure 2025-32. This strategy allows for significant wealth transfer without tax implications, which is valuable for families looking to assist with home purchases.
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CrowdStrike (CRWD) Gains 480%: Tax Strategies for 2026 Savings
With major U.S. indexes at record highs, investors are advised to evaluate tax strategies before the summer ends. One suggestion includes reviewing withholding taxes to ensure appropriate amounts are paid, particularly if personal circumstances have changed. CrowdStrike (CRWD) has seen substantial growth of around 480% over the past three years, which could lead to capital gains taxes if sold. Investors may also consider tax-loss harvesting to offset gains with losses from underperforming investments, potentially lowering their tax bills for 2026.
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NUA Rule Could Save $65,400 on $400,000 in Employer Stock
The Net Unrealized Appreciation (NUA) rule allows for tax savings on employer stock appreciation when retiring. For a 62-year-old engineer with $400,000 in employer stock and a $60,000 basis, using NUA could reduce federal tax liability to approximately $65,400, compared to a higher bill from a standard IRA rollover. The NUA rule applies to employees separating from service, reaching age 59½, or other criteria, and helps avoid increased taxes on Social Security and Medicare surcharges. This matters for investors as it signifies important tax strategies that can maximize retirement savings.
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