HIVE TAX AI
Lotus Li
Lotus Li is a CPA who has transformed 20 years of professional experience into building products with a mission to simplifying everyone’s tax journey. She is passionate about bringing cutting-edge AI into the world of tax and finance and is deeply immersed in designing, building, and launching innovative AI-powered tax solutions.
What are the rules for inherited IRAs and 10-year payout?
For most non-spouse “designated beneficiaries,” an inherited IRA (traditional or Roth) must be fully distributed by December 31 of the 10th year after the year of the original owner’s death.
How do I tax Roth conversions and distributions this year?
A conversion from a traditional, SEP, or SIMPLE IRA to a Roth IRA is treated as a distribution from the non‑Roth IRA and a rollover to the Roth IRA. The taxable portion equals the fair market value converted minus any after‑tax basis
How do annual exclusion gifts work for trusts and estate planning?
For 2025, you can give up to $19,000 to each donee without using any lifetime exemption. A married couple can shield up to $38,000 per donee (via gift-splitting) if they consent and file Form 709 as required
What are the new estate tax exemption rules for 2025?
The federal basic exclusion amount (estate and lifetime gift tax exemption) for decedents dying in 2025 is $13,990,000 per individual. 1
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When gearing up for year-end client tax planning meetings, CPAs can no longer rely solely on heuristics or spreadsheets. With rapid legislative shifts (e.g. the new One Big Beautiful Bill changes) and intensifying client expectations, using advanced tools like Hive Tax AI research
Installment sale tax planning strategies
The default for qualifying sales is to report gain proportionally as payments are received under IRC §453. You can elect out and recognize all gain in the year of sale by reporting the sale on the original timely return (including extensions), e.g., on Form 4797/Schedule D, instead of Form 6252.
Like-kind exchange rules for business property
Only exchanges of real property held for productive use in a trade or business or for investment qualify for nonrecognition under section 1031. Personal property and most intangibles no longer qualify; exceptions are narrow (e.g., certain mutual ditch/reservoir/irrigation shares treated as real property under state law).
Alternative minimum tax implications under current law
The individual AMT is an extra 3-step computation: determine alternative minimum taxable income (AMTI) by adjusting regular taxable income for AMT preference items, subtract the AMT exemption, apply AMT rates (26%/28%) to get tentative minimum tax, and compare it to regular tax
Net investment income tax calculations for high-income clients
Individuals owe a 3.8% tax on the lesser of: (a) their net investment income (NII), or (b) the excess of modified adjusted gross income (MAGI) over the statutory threshold ($200,000 single, $250,000 MFJ, $125,000 MFS; not indexed).
Tax treatment of PPP loan forgiveness and related expenses
PPP loan forgiveness is excluded from gross income. Congress codified that no amount is included in income by reason of forgiveness of a PPP First Draw, Second Draw, or §1109 PPP loan. Further, no deduction is denied, no tax attribute is reduced, and no basis increase is denied because of this exclusion.