Ind & Biz Tax Return 

The 3.8% Medicare surtax (NIIT) applies to high earners with investment income. Strategic planning—such as harvesting losses, maximizing retirement contributions, using installment sales, and converting IRAs to Roths—can reduce or eliminate exposure. Proactive planning not only lowers NIIT but also reduces federal and state income taxes.

The Wash Sale Rule (IRC §1091) disallows capital loss deductions if substantially identical securities are purchased within 30 days before or after a sale. While disallowed losses are usually added to the new basis, IRA purchases can cause permanent loss of the deduction. Careful timing and strategies such as the double-up or options approach can help investors avoid these pitfalls and preserve tax benefits.

Capital Loss Harvesting turns investment losses into a tax advantage. By selling losing assets, you can offset gains, deduct up to $3,000 from other income, and carry forward excess losses for future use. This strategy provides flexibility, reduces taxes on short-term and long-term gains, and prepares you for possible future tax hikes.

The TCJA doubled the estate and gift tax exemption to $13.61M per person in 2024. By electing portability with Form 706, couples can shield up to $27.22M tax-free—making now the best time for estate planning before the 2026 sunset.