In the world of tax law, truly “free” lunches are rare. Usually, a tax break in one area requires a sacrifice in another. However, if you know where to look, the tax code contains several freebies—legal provisions that allow you to increase wealth, generate income, and gift money without the IRS taking a single penny.
Finance
5 Financial Freebies Every Investor Should Claim
A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Thursday, Dec. 11, 2025.
Richard Drew/AP
Here are five of the most powerful financial freebies available to investors today.
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1) The 0% capital gains rate
Most investors assume that selling a winning stock always triggers a tax bill. However, for those in the lower income brackets (up to $50,400 for individuals or $100,800 for married couples in 2026), the long-term capital gains tax rate is exactly 0%.
The Strategy: If you have a low-income year—perhaps due to early retirement before Social Security or required minimum distributions kick in—you can strategically sell appreciated securities without paying any federal tax. The proceeds can fund living expenses or replace the shares you just sold to capture a free stepped-up basis without having to die first.
2) The ‘Augusta Rule’ (rent your home for free)
Named after the homeowners in Georgia who rent out their houses during the Masters golf tournament, Section 280A(g) of the tax code allows you to rent out your primary residence for up to 14 days per year without having to report a single dollar of that income to the IRS.
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The Strategy: Whether you live near a major sporting event, a film set, or a popular festival, you can pocket the rental income entirely tax-free. There are no income limits on this rule, and you don’t even need to report the income on your Form 1040. For high-income earners in high-tax states like California, this is a significant freebie that bypasses both federal and state taxes.
3) The $1,000 ‘Baby Seed’ money
The newly enacted One Big Beautiful Bill Act has introduced a literal cash freebie for the next generation. For every child born between Jan. 1, 2025, and Dec. 31, 2028, the federal government will provide a $1,000 seed deposit into a Trump Savings Account.
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The Strategy: While these accounts have long-term tax flaws, you should never turn down a government grant. Capture the $1,000 as soon as the portal opens in 2026. Let that government money compound, but pivot your own family contributions to a 529 plan for superior tax treatment.
4) The ‘Gap Year’ Roth conversion
The most valuable freebie for retirees often occurs in the window between the end of a professional salary and the start of required minimum distributions, or RMDs, and Social Security. During these gap years, your taxable income may drop to its lowest level in decades.
The Strategy: Use this low-income window to perform Roth conversions at a 0% or 10% effective tax rate. By filling up these lower tax brackets now, you are effectively prepaying your future tax bill at a massive discount. You eliminate future RMD pressure and ensure that every dollar of future growth in that Roth account is shielded from the IRS forever. It is one of the few times the tax code allows you to move money into a tax-free bucket at little or no cost. In most cases, this is a better deal than recognizing capital gains at 0%.
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5) The qualified charitable distribution
Is a qualified charitable distribution, or QCD, truly free? If you are charitably inclined and over age 70½, the answer is a resounding yes. Normally, taking money out of a traditional IRA is a taxable event. However, a QCD allows you to send up to $111,000 each year directly to a charity (in 2026).
The Strategy: The money goes from your IRA to the charity without ever touching your bank account, meaning it is never counted as taxable income. This is a freebie because a lower adjusted gross income can help you avoid higher Medicare premiums, and it reduces the amount of your Social Security that is subject to tax. You are effectively spending your IRA money on your philanthropic goals while keeping the IRS entirely out of the transaction.
Summary for Investors
The IRS rarely hands out gifts, but these five provisions are as close as it gets. Whether it is capturing $1,000 for a newborn or leveraging your gap years for a low-cost Roth conversion, the key is proactive timing.
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This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.
Sheryl Rowling, CPA, is an editorial director, financial advisor for Morningstar.
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$1,000 Trump Accounts: Focus on the Financial Benefits, Not the Branding
https://www.morningstar.com/personal-finance/1000-trump-accounts-focus-financial-benefits-not-branding
Still Working in Retirement? Watch Out for These Social Security and Medicare Tax Traps
https://www.morningstar.com/personal-finance/still-working-retirement-watch-out-these-social-security-medicare-tax-traps
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How Much Should You Allocate to Safer Assets?
https://www.morningstar.com/portfolios/how-much-should-you-allocate-safer-assets
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
Britain’s financial watchdog said on Friday a tribunal hearing on legal challenges to its compensation scheme for mis-sold car loans was unlikely before October, and told lenders to prepare for a possibility that the scheme could be scrapped entirely.
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