Ham Langston & Brezina LLP

Final regulations released by the IRS stipulate that partnerships no longer need to provide detailed gain and loss information to selling partners by January 31. This deadline had become a contentious issue. The tax code requires that any portion of a partnership’s sale proceeds attributable to the partner’s share of unrealized receivables and inventory items be reported as ordinary income. Other sale proceeds are generally taxed as capital gains. But partnerships complained that the reporting deadline was hard to meet. Now, partnerships can provide such information to partners according to their natural end-of-year tax compliance cycle, on or with Schedule K-1.

Home renovations can improve a residence’s comfort, functionality, aesthetics and resale value. They might also provide tax benefits. You may be able to deduct mortgage interest on debt used to substantially improve your home. Certain improvements can also increase your tax basis, potentially reducing taxable gain when you sell. Medically necessary modifications may qualify as deductible medical expenses, subject to limits. And if you overlooked claiming now-expired credits for qualifying energy-efficient home improvements you made in 2025, an amended return may be worth considering. Contact us to talk taxes before or after a home renovation.

The IRS has issued guidance (Notice 2026-33) on qualified long-term care (LTC) distributions from defined contribution retirement plans, such as 401(k)s. If a plan permits, distributions made after Dec. 29, 2025, to pay LTC insurance premiums are exempt from the 10% early withdrawal penalty but included in gross income. Distributions are limited to the lesser of the insurance premium paid, 10% of the employee’s vested plan benefit or $2,600 (adjusted for inflation after 2026). The guidance also extends the deadline for plan administrators to amend plans to permit LTC distributions to Dec. 31, 2027.

Small business owners: If you think your income is too high for you to qualify to make Roth IRA contributions, think again. Many owners are eligible without realizing it because of various deductions for the self-employed.

A Roth IRA offers potential advantages over tax-deferred accounts. Although Roth contributions aren’t deductible, qualified withdrawals won’t be taxed. And you aren’t required to take withdrawals from your Roth IRA, meaning the account can continue to grow tax-free. Your heirs can also take tax-free withdrawals.

For help evaluating your Roth IRA eligibility and developing a long-term retirement strategy that aligns with your personal and financial goals, contact us.

Powers of appointment can add valuable flexibility to an estate plan by allowing a trusted individual (the “holder”) to adjust how assets are distributed after your death, based on changing circumstances. These might include marriages, births, financial needs or changing tax law. Powers of appointment may be general or limited. A general power of appointment allows the holder to distribute assets to anyone and can cause the assets to be included in the holder’s taxable estate — even if the holder doesn’t execute the power. Limited powers have certain restrictions. In most cases, they don’t allow holders to distribute assets for their own benefit. Contact us for more details.

It can be tough for small businesses to borrow money at favorable terms. But the U.S. Small Business Administration (SBA) offers several loan programs to help small businesses grow and create jobs. SBA loans of up to $5.5 million may be available and typically offer competitive interest rates and terms. Applying and qualifying for an SBA loan may also be easier than for conventional loans. The most popular type is the 7(a) loan, which can be used for most business purposes, including asset purchases and debt refinancing. The microloan program offers loans of up to $50,000. Contact us to help determine the right option for your business.

When it comes to financial reporting, accuracy matters. But so does clarity. Many stakeholders — including board members, donors, employees and investors — don’t have accounting backgrounds and may struggle to interpret complex financial data. Using plain language, engaging visuals and key benchmarks can turn complicated financial data into something more useful and actionable. We can help you develop financial reports and presentations that improve stakeholder understanding of your organization’s performance and enable better-informed decisions. Contact us to learn more.

For 2026, the federal gift and estate tax exemption is $15 million — effectively $30 million for a married couple. “Portability” allows any unused portion of a deceased spouse’s exemption to be transferred to the surviving spouse. But it isn’t automatic. The executor must timely file a properly completed estate tax return. Even if no estate tax is due on the first spouse’s death and it doesn’t look like the surviving spouse’s estate will exceed the exemption, making the portability election is a good idea. Doing so can help protect the survivor’s estate from estate taxes if he or she enjoys an unexpected windfall or if tax law changes reduce the exemption. For more information, contact us.

Certain “small businesses” may qualify for several valuable tax breaks. But different tax provisions use different size tests.

For instance, a gross receipts test is used to determine eligibility for cash accounting, simplified inventory rules, the completed contract method, relief from UNICAP requirements and exemption from the business interest deduction limitation. This threshold is adjusted for inflation. For 2026, your business may be eligible if its average annual gross receipts for the prior three-year period were $32 million or less.

Contact us to help evaluate your eligibility for these and other tax-saving opportunities based on your business’s structure and operations.

One of the greatest risks to your estate plan is the chance of incurring substantial long-term care (LTC) costs. These costs can quickly erode the savings you want to pass on to your family after your death. One solution is to purchase an LTC insurance policy. The policy’s terms dictate the amount of benefits you’ll receive each day or month, up to a defined lifetime maximum or number of years. A policy generally provides benefits when you can’t perform multiple basic activities of daily living or if you experience cognitive impairment. Carefully compare policy options, costs and benefits to find the best fit for your needs and goals. Contact us with any questions.