Jul 24, 2026
In this episode:
- Hobby loss rules – refresher on when the IRS may reclassify a business as a hobby.
- Trump accounts – contributing up to $5,000 for a minor without triggering a gift tax filing.
- Gift tax basics – $19,000 annual exclusion, filing requirements above that, and the $15M lifetime exemption.
- Gambling loss changes – losses now deductible only up to 90% of winnings (previously 100%), and only if itemizing.
- Online sports betting – winnings are taxable income regardless of platform.
- Standard mileage rate increase – 76 cents/mile for July–Dec 2025 vs. 72.5 cents for Jan–June.
- Foreign bank account disclosure – steep penalties for not reporting foreign accounts/access to funds.
- IRS penalty relief – automatic first-time penalty abatement for compliant taxpayers (no longer needs to be requested).
- IRS penalty statistics – $1.25 trillion assessed in 2025, 92% from unpaid payroll taxes, with most later abated.
- Maryland's new tax portal – launching September 1st, with a blackout period and no penalties during the transition.