8legs: Internal revenue service

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#1 out of 5

Income-generating investments can trigger a tax bill even before selling, so plan for potential taxes during the season.
Long-term capital gains depend on holding period: gains over one year are taxed at favorable rates, while short holds may incur ordinary-income rates.
Dividend-paying stocks and ETFs can generate taxable income in a brokerage account, with qualified dividends taxed at favorable long-term rates.
Forms such as 1099-DIV and 1099-B start arriving early in tax season, helping you compute taxes owed on investment income and proceeds.
Certain income sources like bonds and money market funds can generate ordinary income taxed at your marginal rate, affecting year-end tax planning.
MLPs offer high yields but bring Schedule K-1 complexity and late, irregular tax reporting.
Holding assets in tax-advantaged accounts (like IRAs) can defer taxes until distributions are taken.
Before investing, identify the tax form and timing of its release to avoid surprises later in filing season.
Tax-advantaged placement matters: bonds and interest-generating assets may be better suited for tax-deferred or tax-free accounts.
Work with a financial advisor to simplify the tax process and potentially reduce the volume of annual 1099 forms.
Review how income-generating assets fit your overall strategy, balancing yields with the potential tax impact in 2026.

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#2 out of 5

Taxpayers should file on time or seek an extension to minimize penalties and processing delays.
The IRS imposes separate penalties for late filing and late payment, which can compound if not addressed.
Filing extensions (Form 4868) buys time to file, but not to pay the full amount due.
Estimated quarterly tax payments help avoid underpayment penalties for self-employed individuals.
Penalty relief options include First Time Abate and reasonable cause relief.
Keeping thorough year-round records helps avoid delays and errors during tax processing.
Common errors triggering delays include mismatched names, Social Security numbers, and math mistakes.
The IRS provides tools like 'Where's My Refund' to track refunds and reduce phone inquiries.
Penalty abatement can be requested with Form 843, potentially removing penalties and related interest.
A direct debit installment agreement offers a low-cost way to structure long-term payment plans.

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#3 out of 5

Analysts expect 2026 tax refunds to rise, potentially boosting short-term consumer spending across retailers and travel-related firms.
Wolfe Research identifies nine stocks likely to benefit from refund-fueled spending, noting Costco as a top beneficiary.
Darden Restaurants and Robinhood are cited as beneficiaries as refunds could drive dining and investing activity.
Dollar General and TJX Companies are named as beneficiaries due to increased discretionary shopping during refunds.
Analysts caution refunds could push temporary inflation, despite potential boosts to consumer sectors.
Robinhood is highlighted as a top investing app for younger Americans amid refund-driven investing.
Refund timing typically brings a mid-February to early-March cash influx, amplifying short-term spending.
Costco is highlighted as having room to rise with strong membership growth potential.
The piece notes refunds support travel demand, retail, and casual dining segments.
Overall, experts see refunds as a short-term catalyst for consumer-facing equities amid economic caveats.

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#4 out of 5

Self-directed IRAs offer tax benefits but carry major caveats and the risk of costly mistakes.
Prohibited transactions and self-dealing rules require careful evaluation of asset choices and custodial actions.
Custodians mainly hold assets and do not assess investment quality, raising the need for professional guidance.
Investors may face penalties if they engage in prohibited transactions or fail to obtain annual valuations.
The article cautions about excess liquidity use and potential tax results when liquidating improper holdings.
Loss harvesting rules do not apply to private equity funds within self-directed IRAs, reducing deductions.
Unrelated business income taxes can arise from operating businesses funded within the IRA.
IRS rules limit holding life insurance, collectibles, and related-party loans in self-directed IRAs.
Investors should seek professional advice to navigate custodial arrangements and avoid disqualifications.
The article highlights Peter Thiel as a case often discussed in the context of self-directed IRAs.

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#5 out of 5

The 2026 tax changes modify standard deductions and add new deductions and credits under the One Big Beautiful Bill.
Experts urge filing early and staying organized as 2025 returns transition to the new rules.
If you receive tips, two points matter: tips vs. service charges, and new guidance on deductions.
New senior deduction: up to $6,000 per person, applicable regardless of Social Security status.
A vehicle purchase in 2025 may qualify for up to $10,000 in deductible interest if US-assembled.
Tax updates will be covered by Vanessa Vasconcelos across social platforms for ongoing guidance.
The report clarifies the distinction between service fees and tips for tax purposes.
The article notes the transition year in 2025 as infrastructure for new rules was still being set up.
The piece highlights guidance from tax professionals to help readers navigate the changes.

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