Episodes
How the 2026 Gift Tax Exclusion Lets You Transfer Wealth Tax-Free
In this episode of The Tax Strategy Podcast, Lucas and Luna explain the 2026 annual gift tax exclusion — the $20,000 per person per year you can give away without filing a gift tax return. They break down how it works, why it's a simple but powerful estate planning tool, and how it interacts with the estate tax exemption that's set to be cut in half in 2026. They cover the mechanics, the paperwork, and practical strategies for using it to reduce a taxable estate. If you've ever wondered how to…
The 2026 Estate Tax Exemption Cliff and How to Plan
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the 2026 estate tax exemption sunset—a provision set to cut the federal exemption from $13.61 million to roughly $6 million per person, effective January 1, 2026. They explain what the change means for wealthy families, how the portable exemption works between spouses, and why gifting before year-end could be a smart move. Lucas walks through the basics of federal estate taxes, including the 40 percent top rate, and…
How the Qualified Business Income Deduction Works for Rental Properties
If you own rental real estate, you might be leaving thousands on the table. In this episode, Lucas and Luna break down how the QBI deduction — the 20 percent pass-through deduction from Section 199A — applies to rental properties under the 2026 rules. They explain the two key paths: treating your rental as a trade or business versus relying on the safe harbor from the IRS. You'll learn what counts as 'significant services' — think substantial repairs, guest screening, and daily housekeeping…
How the Home Office Deduction Works in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the home office deduction for 2026. They walk through the two calculation methods—the simplified option at five dollars per square foot and the actual expenses approach—and explain who qualifies under the exclusive and regular use tests. They discuss how the deduction interacts with the 2026 standard deduction, the impact on self-employment tax, and common pitfalls like depreciation recapture. With a focus on a specific…
How Charitable Remainder Trusts Cut Your 2026 Tax Bill
In this episode, Lucas and Luna explore charitable remainder trusts as a powerful 2026 tax strategy. They break down how a CRT lets you donate appreciated assets, avoid immediate capital gains, and secure a lifetime income stream. Using a concrete example with $500,000 in appreciated stock, they walk through the mechanics, the tax math, and the key IRS rules, including payout rates and the 10% remainder requirement. They also weigh the pros and cons, discuss who benefits most, and compare CRTs…
How Tax-Loss Harvesting Lowers Your 2026 Capital Gains
Lucas and Luna dive into tax-loss harvesting, the year-end strategy that turns investment losses into tax savings. They explain how selling losing positions to offset capital gains works under 2026 rules, walk through the wash-sale rule that traps many investors, and show why the strategy is especially valuable in a volatile market like the one we've seen in 2026. With a detailed example of a $15,000 loss and a $10,000 gain, they clarify the $3,000 annual income deduction limit and how unused…
How the Nanny Tax Works for Household Employers
Hiring a nanny or household employee means navigating the 'nanny tax' — a set of payroll and income tax rules many families discover only after a surprise bill. In this episode, Lucas and Luna break down the 2026 thresholds, the difference between a household employee and an independent contractor, and why a simple W-2 can save you thousands in penalties. They walk through real numbers for a family paying $20,000 a year, explain the IRS Schedule H filing process, and share the common mistake…
How Inherited IRAs Work Under the 10-Year Rule
When you inherit a retirement account, the tax rules changed dramatically under the SECURE Act. In Episode 151 of The Tax Strategy Podcast, Lucas and Luna break down the 10-year rule for inherited IRAs, who it applies to, how the IRS final regulations in 2024 clarified required minimum distributions, and why the penalty for missing an RMD can be steep. They walk through a concrete example of a non-spouse beneficiary inheriting a $500,000 traditional IRA, show how stretch IRA strategies vanished…
How the Foreign Tax Credit Avoids Double Taxation in 2026
When you earn money abroad—say, from a freelance client in Berlin or a rental property in Lisbon—the U.S. taxes your worldwide income, and the foreign country taxes it too. That's double taxation unless you claim the foreign tax credit. In this episode, Lucas and Luna explain how the credit works, who qualifies, and the key limits to watch for in 2026. They walk through a practical example using the simplified option, explain how the credit interacts with the foreign earned income exclusion…
The Extra Child Tax Credit You Haven't Heard Of
Most people know the Child Tax Credit, but far fewer understand the Additional Child Tax Credit — a refundable piece that can put money in your pocket even if you owe no tax. In this episode, Lucas and Luna unpack how the credit works in 2026, who qualifies, and why it's especially valuable for lower-income families. They walk through a concrete example: a family with two kids and $18,000 of earned income, showing how the credit can be refunded up to 15 percent of income over $2,500. They also…
The SALT Cap Deduction and Its 2026 Limits
Lucas and Luna break down the state and local tax deduction — the SALT cap — in 2026. They explain how the $10,000 federal limit on deducting state income and property taxes affects homeowners, high earners, and residents of high-tax states like New York and California. They also explore alternative strategies, including the workaround some states have adopted for pass-through businesses, and how the cap could change with the Tax Cuts and Jobs Act provisions expiring after 2025. Listeners get a…
How the Credit for Other Dependents Can Cut Your Tax Bill
In this episode, Lucas and Luna break down the Credit for Other Dependents, a lesser-known tax credit that can save you up to $500 per dependent who doesn't qualify for the Child Tax Credit. They explain who counts as a qualifying dependent, how the credit phases out for higher incomes, and why it's often overlooked by taxpayers caring for aging parents or adult children with disabilities. Using a concrete example of a couple caring for an elderly parent, they walk through the math and show how…
How the Child and Dependent Care Credit Works in 2026
In Episode 146 of The Tax Strategy Podcast, Lucas and Luna drill into the Child and Dependent Care Credit — the often-overlooked tax break for working parents and caregivers. They walk through who qualifies, how the credit is calculated, and the key limits for 2026, including the $3,000 and $6,000 expense caps and how the credit percentage scales with income. They also tackle a common pitfall: why the credit often doesn't help low-income families as much as expected, and how employer-provided…
How the New 1099-K Threshold Affects Gig Workers
The IRS quietly lowered the 1099-K reporting threshold to $5,000 for 2026, and that changes things for freelancers, gig workers, and small sellers. Lucas and Luna break down what the 1099-K actually is, how the new threshold works, and why it doesn't change your tax bill—but does change your paperwork. They walk through a concrete example of a rideshare driver who gets a 1099-K for the first time, explain the state-by-state patchwork of thresholds, and offer practical tips for reconciling…
How the Mortgage Interest Deduction Really Works in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the mortgage interest deduction in 2026, explaining exactly who qualifies, how the limits have changed, and why the standard deduction often makes it useless. They walk through a concrete example of a $750,000 mortgage, discuss the impact of the 2025 tax law changes, and clarify the rules for home equity debt, second homes, and refinancing. Listeners will learn how to run the numbers for their own situation, when it makes…
How the Clean Vehicle Credit Works in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the Clean Vehicle Credit for 2026, focusing on the new point-of-sale transfer option that lets buyers apply the credit at the dealership. They walk through the income limits, the price caps, and the confusing battery component requirements, using the example of a family buying an electric SUV under $80,000. They also discuss how the credit phases out for higher earners and why leasing can sometimes be a better workaround. By…
The State Tax Credit That Pays You to Donate to Scholarship Funds
In this episode of The Tax Strategy Podcast, Lucas and Luna unpack state-level tax credits that reward donations to scholarship-granting organizations. Using Arizona's law as a concrete example, they explain how a dollar-for-dollar credit can lower your state tax bill by up to $1,000 for individuals or $2,000 for couples filing jointly. They walk through the mechanics, who benefits, and the policy trade-offs, including how these credits influence where education dollars flow. If you itemize or…
How the American Opportunity Tax Credit Saves College Costs in 2026
Episode 141 of The Tax Strategy Podcast breaks down the American Opportunity Tax Credit (AOTC) — a refundable credit worth up to $2,500 per undergraduate student. Lucas explains the eligibility rules, income phaseouts (starting at $180,000 MAGI for joint filers), and qualifying expenses like tuition and books. Luna asks about the Lifetime Learning Credit, dependent claiming, and coordination with 529 plans. A 2026 case study shows how a family with a community college student can pocket the…
How the HSA Triple Tax Advantage Works in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the Health Savings Account — the most powerful tax-advantaged account most people overlook. With specific 2026 contribution limits ($4,150 for individuals, $8,300 for families, plus $1,000 catch-up), they explain how the triple tax benefit works: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. They discuss why savvy savers invest their HSA for long-term growth rather…
How Clean Energy Tax Credits Slash Your 2026 Tax Bill
In this episode of The Tax Strategy Podcast, hosts Lucas and Luna break down the federal tax credits available for homeowners and businesses investing in clean energy in 2026. They focus on the Residential Clean Energy Credit, which covers 30% of solar panel, battery storage, and geothermal heat pump costs with no dollar cap, and the Energy Efficient Home Improvement Credit, which offers up to $1,200 annually for items like windows and doors, plus $2,000 for heat pumps. Lucas explains how these…
How Section 199A Saves Small Business Owners Thousands in 2026
The Qualified Business Income deduction (Section 199A) lets many small business owners deduct up to 20% of their pass-through income. But the rules get tricky: specified service businesses like doctors and lawyers face phaseouts above certain income thresholds, and even trades like manufacturing are limited by wages and property. In this episode, Lucas and Luna break down exactly how the deduction works for a real-world example—a married plumber earning $300,000 who can claim a $60,000…
How Remote Work Across State Lines Complicates Your Taxes in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna unpack the state tax maze facing remote workers. With about one in three employees still working remotely or hybrid, the question of which state gets your income tax is surprisingly tricky. Lucas explains the 'convenience of the employer' rule, focusing on New York's aggressive stance: if you live in a no-tax state like Texas but work for a New York company, you may still owe New York tax. Luna probes how remote workers can avoid…
How the Kiddie Tax Works for Your Child's Investment Income
If your child has investment income from a custodial account, the kiddie tax might apply and it’s taxed at trust tax rates—not the child’s lower rate. In this episode, Lucas and Luna break down the 2026 thresholds (the first $1,300 is tax-free, next $1,300 at child’s rate, anything over at trust rates), who is affected (children under 19 and full-time students under 24), and three practical strategies to reduce the impact: switching to growth stocks, using municipal bonds, and timing the sale…
How the AMT Still Catches High-Income Earners in 2026
The Alternative Minimum Tax (AMT) was designed to ensure wealthy taxpayers pay a minimum tax, but it still ensnares many high-income earners with large deductions. In this episode, Lucas and Luna break down how the AMT works, why it's triggered by state and local tax deductions, and who's most at risk in 2026. Using a concrete example of a taxpayer earning $500,000 with significant itemized deductions, they explain the 26% and 28% rates, exemption phaseouts, and planning strategies like…
How the Primary Residence Capital Gains Exclusion Works in 2026
Selling your home? The IRS lets single filers exclude up to $250,000 of profit from capital gains tax, and married couples filing jointly can exclude $500,000. But the rules have traps: the two-out-of-five-year ownership and use test, how to count time if you've worked from home, and what happens if you sell before two years. Lucas and Luna walk through a concrete example of a couple selling a home in Austin, Texas, and show how the exclusion saved them over $70,000 in taxes compared to a…
How the Qualified Small Business Stock Exclusion Slashes Your Tax Bill
If you've ever invested in a startup or thought about it, here's a tax break that could save you millions. The Qualified Small Business Stock exclusion, or Section 1202, lets you exclude up to $10 million or 10 times your basis in capital gains when you sell qualifying stock held for over 5 years. Lucas and Luna break down the rules with a concrete example: a $1 million investment in a biotech startup that grows to $20 million. They explain the conditions—C-corporation, gross assets under $50…
How Section 179 Saves Thousands on Business Equipment in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna delve into the Section 179 deduction, a powerful tool that allows businesses to immediately deduct the full purchase price of qualifying equipment. Using a concrete example of a $50,000 machine, they explain how it slashes tax bills, discuss the 2026 limit of $1.16 million, and clarify the phase-out when purchases exceed $2.89 million. They compare Section 179 with bonus depreciation, highlight the luxury vehicle limits for heavy SUVs…
What Makes a Hobby a Business for Tax Purposes
If your side hustle loses money year after year, the IRS might reclassify it as a hobby — and that changes everything about your tax deductions. In this episode, Lucas and Luna break down the 'hobby loss rule' under Section 183, the nine factors the IRS uses to distinguish a business from a hobby, and the critical three-of-five-years profit presumption. Using a concrete example of an online craft seller who turns a profit in year four, they explain how to document profit motive, defend…
How the Saver's Credit Boosts Retirement Savings for Low-Income Workers
In Episode 130 of The Tax Strategy Podcast, Lucas and Luna dive into the Saver's Credit — a non-refundable tax credit that can put up to $1,000 back in the pocket of a low-to-moderate-income worker who contributes to a retirement account. They explain the income limits for 2026 (adjusted gross income below $38,250 for singles, $76,500 for married filing jointly), how the credit rate phases down from 50% to 10%, and why nearly 40% of eligible taxpayers never claim it. Lucas shares a concrete…
How the Nanny Tax Works for Household Employers in 2026
If you pay a nanny, housekeeper, or caregiver more than $2,800 in 2026, you are a household employer subject to the 'nanny tax' — Social Security, Medicare, unemployment, and sometimes workers' comp. In this episode, Lucas and Luna walk through the specific dollar thresholds (including the $1,000 federal unemployment tax trigger), the Schedule H filing process, and the often-overlooked deduction for household payroll taxes that can appear on Schedule C or Schedule A. They discuss the 2026…
How the Self-Employment Tax Works for Freelancers in 2026
Lucas and Luna break down the self-employment tax, SE tax, for freelancers and gig workers in 2026. They explain the 15.3 percent rate, the deduction for half of SE tax, how to estimate quarterly payments using Schedule SE, and the impact of the net earnings threshold. A concrete example illustrates how a freelance graphic designer earning $80,000 calculates their SE tax and takes the deduction. The episode also covers strategies to reduce SE tax exposure through entity structure, retirement…
How the Foreign Account Tax Compliance Act Affects US Expats in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the Foreign Account Tax Compliance Act (FATCA) and how it impacts Americans living abroad in 2026. They explain the FBAR filing threshold, the penalty for non-compliance, and why some expats are renouncing citizenship. Using the example of a US expat in Canada with a $75,000 retirement account, they walk through the reporting requirements and the foreign account exclusion. They also discuss recent IRS enforcement trends and…
How the Like-Kind Exchange Defers Capital Gains on Investment Property
In this episode of The Tax Strategy Podcast, Lucas and Luna break down Section 1031 of the tax code — the like-kind exchange — and how real estate investors use it to defer capital gains taxes indefinitely. They walk through the mechanics: the 45-day identification window, the 180-day exchange period, and the strict rules for replacement property. Lucas explains why this strategy is often called the 'ultimate deferral' and contrasts it with a straight sale. They also discuss the 2017 tax reform…
How the Child and Dependent Care Tax Credit Works in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the Child and Dependent Care Tax Credit for 2026 — a credit that helps working parents and caregivers offset the cost of daycare, after-school programs, and even summer camps. They walk through the specific dollar limits, income phaseouts, and eligibility rules using a concrete example: a married couple in Chicago with two kids and $18,000 in daycare expenses. They explain how the credit has changed since the pandemic-era…
How the De Minimis Safe Harbor Saves Taxes on Small Purchases
Lucas and Luna unpack the de minimis safe harbor election—an IRS rule that lets you immediately deduct small asset purchases instead of depreciating them over years. Using the case of a freelance photographer buying gear and a contractor upgrading tools, they explain the $2,500 per invoice threshold, the difference between the taxpayer-friendly and financial-statement safe harbors, and a common mistake that triggers IRS scrutiny. They also cover how this interacts with bonus depreciation and…
How Tax-Loss Harvesting Works in a Volatile Market
In this episode, Lucas and Luna break down the mechanics of tax-loss harvesting — selling investments at a loss to offset capital gains and reduce your tax bill. Using a concrete example from the summer 2026 market pullback, they explain how a hypothetical investor with $50,000 in realized gains could use $30,000 in losses from a beaten-down tech ETF to zero out their tax liability. They cover the wash-sale rule trap (including the 30-day window and how it applies across accounts), the…
How the Foreign Tax Credit Prevents Double Taxation
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the Foreign Tax Credit — a little-understood provision that prevents U.S. taxpayers from being taxed twice on the same foreign income. Using the example of a U.S. citizen working remotely for a European company while living in Portugal, they walk through how the credit works, the difference between the direct and indirect credit, the de minimis rule for small foreign tax amounts, and the carryforward period for unused…
How the Net Operating Loss Carryforward Works for Business Owners in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the net operating loss (NOL) carryforward rules that every business owner should understand in 2026. With the post-2020 changes still in effect, including the 80 percent taxable income limitation and the indefinite carryforward period, many entrepreneurs are leaving money on the table. The hosts walk through a concrete example: a graphic design studio that lost $250,000 in 2025 and turned that into a six-figure tax saving in…
How the Tax Cuts and Jobs Act Provisions Phase Out in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the 2026 cliff: key Tax Cuts and Jobs Act provisions that sunset this year. With the individual tax rates, standard deduction, child tax credit, and estate tax exemption all set to revert to 2017 levels unless Congress acts, millions of households face higher bills. The hosts walk through the specific numbers: what the rate brackets change to, how the standard deduction drops from $13,850 to roughly $8,000 for singles, and…
How the Net Investment Income Tax Hits Passive Investors
In Episode 119 of The Tax Strategy Podcast, Lucas and Luna break down the Net Investment Income Tax (NIIT) — a 3.8% surtax that catches many high-earning investors off guard. They explain how the tax applies to capital gains, dividends, and rental income above $200,000 (single) or $250,000 (married filing jointly). Using a concrete example of a software engineer who sold company stock in 2026, they show how the NIIT can add thousands to your tax bill and offer strategies to minimize it…
How the Home Office Deduction Works for Self-Employed in 2026
Lucas and Luna break down the home office deduction for the self-employed in 2026, focusing on the two calculation methods—simplified ($5 per square foot, max $1,500) and regular (actual expenses, depreciation). They walk through a concrete example: a freelance graphic designer earning $80,000, with a 200-square-foot office in a 2,000-square-foot home. Lucas explains the exclusive-use test, the principal-place-of-business test, and common red flags like deduction exceeding business income or…
How the Research and Development Tax Credit Works for Small Businesses
In this episode of The Tax Strategy Podcast, Lucas and Luna demystify the Research and Development (R&D) tax credit for small businesses. They explain how the credit works for companies developing new products, improving processes, or creating software, not just for lab coats in white rooms. Using a concrete example of a small manufacturing firm that automated its assembly line, Lucas walks through qualified research expenses, the four-part test, and how to calculate the credit. Luna highlights…
How the Qualified Business Income Deduction Works for Small Business Owners
Lucas and Luna break down Section 199A, the Qualified Business Income deduction that lets many small business owners deduct up to 20% of their pass-through income. They walk through the phase-in thresholds for 2026: $197,300 for single filers and $394,600 for married filing jointly. They explain the key limitation—specified service trades or businesses like doctors, lawyers, and consultants get a phased-out deduction above those thresholds—and the wage-and-property limit that caps the deduction…
How the Wash Sale Rule Traps Active Traders in 2026
Lucas and Luna unpack the wash sale rule — one of the IRS's most misunderstood tax traps for active traders and investors. Using a concrete example of a trader who sells NVIDIA at a loss, then buys back within 30 days, they explain how the rule disallows the tax loss and defers it into the replacement shares. They cover the 61-day window, how it applies across accounts (including IRAs), and why it matters for tax-loss harvesting strategies in 2026. Lucas highlights a 2023 Tax Court case that…
How the Clean Energy Vehicle Tax Credit Works in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna break down the federal tax credit for clean-energy vehicles in 2026 — including the income phaseouts, the MSRP cap, the critical battery sourcing requirements, and the new point-of-sale transfer that makes the credit available at the dealership. They walk through a concrete example: a family earning $240,000 buying a qualifying SUV, and how the credit interacts with leasing vs. buying. They also explain why many popular electric…
How Charitable Donations of Appreciated Stock Cut Your Tax Bill
In Episode 113 of The Tax Strategy Podcast, Lucas and Luna break down one of the most underused tax strategies: donating appreciated stock instead of cash. They walk through a concrete example — a listener with $10,000 of Apple stock bought at $4,000 — and show how the maneuver avoids capital gains tax while still getting a full fair-market deduction. They explain the holding-period requirement, the AGI limitation (30% for appreciated property), and why this strategy can be better than selling…
The Tax Strategy Behind Roth IRA Conversions in 2026
In this episode of The Tax Strategy Podcast, Lucas and Luna explore the strategic use of Roth IRA conversions in 2026, a year when many taxpayers face lower income due to TCJA sunsets and market volatility. Lucas explains why converting traditional IRA funds to a Roth during a down market or low-income year can lock in tax savings for life. They break down the mechanics: you pay income tax on the converted amount now, but future growth and withdrawals are tax-free. Lucas highlights the 'tax…
How the Kiddie Tax Works When Your Child Has Investment Income
Lucas and Luna break down the Kiddie Tax rules that apply when a child's unearned income exceeds a certain threshold. They explain how the tax is calculated using the parent's marginal rate rather than the child's lower rate, and walk through a concrete example: a 14-year-old with $4,200 in dividend income and a $1,500 capital gain from a custodial account. They cover the net investment income tax exemption for minors, the importance of filing a separate return for the child, and a real…
How the Tax Exclusion on Municipal Bond Interest Actually Works
Lucas and Luna break down the mechanics behind the tax-free interest on municipal bonds in 2026. They explain what 'triple tax-free' really means, compare taxable-equivalent yields, and walk through a real-world example of a California resident deciding between a muni bond and a corporate bond. The episode also covers the alternative minimum tax (AMT) pitfalls and the little-known de minimis rule that can trigger capital gains on discounted bonds. Perfect for investors in high tax brackets…
How the 0.1 Percent Save Millions on Estate Tax
In Episode 109 of The Tax Strategy Podcast, Lucas and Luna unpack how ultra-high-net-worth families use grantor retained annuity trusts (GRATs) to move millions out of their taxable estates with almost no gift tax cost. They walk through the mechanics, the 7520 rate that dictates success, and why October 2026 is a critical moment before rates reset. A concrete look at a strategy that sounds like magic but is perfectly legal — and increasingly popular as estate tax exemptions are set to drop in…
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