Tax Law Changes

What provisions are new?

• Trump Account Contribution Gift Tax Return Safe Harbor:
  
  Under Revenue Procedure 2026-25, taxpayer contributions to Trump accounts will be treated as completed gifts that are not gifts of future interests in property and to which the annual per-donee gift tax exclusion applies. Taxpayers who meet all the following requirements will not be required to file gift tax returns reporting such contributions.
  1. Taxpayer is an individual.
  2. The only taxable gifts made by the taxpayer during the calendar year are cash contributions (in the form of cash, check, money order, or electronic funds transfer) to one or more Trump accounts, before the calendar year in which the account beneficiary reaches age 18.
  3. The taxpayer's total gifts during the calendar year to each account beneficiary, including contributions to the account beneficiary's Trump account, do not exceed the annual exclusion amount ($19,000 for 2026).
  4. Contributions made to Trump accounts during the calendar year do not generate either a gift or GST tax liability, after application of the taxpayer's remaining applicable credit amount against the gift tax, or remaining GST exemption.
  5. Disregarding the Trump account contributions described in section (2) above, no gift tax return is required to be filed, and no gift tax return is otherwise filed, for that calendar year by or on behalf of the taxpayer, whether for GST tax, portability, or other purposes.
• Safe Harbor Summary:
  • If all of the requirements noted above are met for a calendar year in which a taxpayer makes contributions to one or more Trump accounts, the safe harbor rule applies. Each Trump account contribution made by the taxpayer during that calendar year will be treated as a completed gift to the account beneficiary that is not a future interest in property and to which the annual exclusion applies for purposes of gift tax, GST tax and gift tax reporting. Taxpayers who meet the requirements will not be required to file a gift tax return reporting such contributions.
  • The safe harbor rule will not apply if a taxpayer makes total gifts to a donee (including any Trump account contributions) that exceed the annual gift tax exclusion for the calendar year. In this case, the taxpayer will be required to file a gift tax return reporting all gifts during the calendar year. See Revenue Procedure 2026-25 for details.