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2025 Federal Income Tax Brackets

For Single Filers:

• 10%: Up to $11,925
• 12%: $11,926 to $48,475
• 22%: $48,476 to $103,350
• 24%: $103,351 to $197,300
• 32%: $197,301 to $626,350
• 35%: $626,351 to $751,600
• 37%: Over $751,600

For Married Couples Filing Jointly:

• 10%: Up to $23,850
• 12%: $23,851 to $96,950
• 22%: $96,951 to $206,700
• 24%: $206,701 to $394,600
• 32%: $394,601 to $789,300
• 35%: $789,301 to $1,002,200
• 37%: Over $1,002,200

Kiplinger

Standard Deduction for 2025

• Single Filers: $15,000 (up from $14,600 in 2024)
• Married Filing Jointly: $30,000 (up from $29,200 in 2024)

AARP

Understanding Marginal Tax Rates

The U.S. tax system is progressive, meaning income is taxed in segments at increasing rates. For example, a single filer earning $50,000 in 2025 would pay:

• 10% on the first $11,925
• 12% on the amount between $11,926 and $48,475
• 22% on the remaining income over $48,475

This structure ensures that only the income within each bracket is taxed at that bracket’s rate.

Strategies to Minimize Tax Liabilities

1. Maximize Retirement Contributions:
   • 401(k) Plans: Contributions are made with pre-tax dollars, reducing taxable income. The IRS has increased contribution limits for 2025 to account for inflation. Fox Business
   • IRAs: Traditional IRA contributions may be tax-deductible, further lowering taxable income.
2. Utilize Tax-Advantaged Accounts:
   • Health Savings Accounts (HSAs): Contributions are tax-deductible, and withdrawals for qualified medical expenses are tax-free. This triple tax advantage can significantly reduce tax liabilities. Business Insider
   • 529 College Savings Plans: While contributions are not federally tax-deductible, earnings grow tax-deferred, and qualified withdrawals are tax-free. Savvy Wealth
3. Engage in Tax-Efficient Investing:
   • Tax-Loss Harvesting: Offset capital gains by selling underperforming investments, thereby reducing taxable income. The Wall Street Journal
   • Holding Periods: Long-term capital gains (on assets held for more than a year) are taxed at lower rates than short-term gains. Strategically timing the sale of investments can minimize taxes. U.S. News Money
4. Leverage Real Estate Investments:
   • Depreciation Deductions: Real estate investors can deduct depreciation, reducing taxable rental income. For instance, residential property depreciation can provide substantial annual deductions. U.S. News Money
   • 1031 Exchanges: Defer capital gains taxes by reinvesting proceeds from a sold property into a similar property, allowing for tax-efficient portfolio growth. Forbes
5. Deduct Business Expenses:
   • Ordinary and necessary business expenses, such as travel, equipment, and home office costs, can be deducted to lower taxable income. Maintaining thorough records and consulting with a tax professional is essential to ensure compliance and maximize deductions. Diversified LLC

Consult a Tax Professional

Navigating the complexities of the tax code requires expertise. A qualified tax advisor can provide personalized strategies to optimize deductions, credits, and investments, ensuring compliance and maximizing tax savings.

Staying informed about tax law changes and proactively implementing tax-efficient strategies can significantly impact your financial well-being. Regular consultation with a tax professional is recommended to adapt to evolving regulations and personal financial circumstances.

Recent Updates on 2025 Tax Brackets and Strategies

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence

The post 2025 Income Tax Brackets and Changes appeared first on ROI TV.

Controlling Taxes in Retirement

Taxes can be one of the largest expenses in retirement, with the average American paying $533,000 in taxes over their lifetime. Joe and Alan emphasize the importance of proactive tax planning to keep more money in your pocket. Implementing strategies to manage taxes effectively can significantly impact your financial stability in retirement.

Understanding Tax Deductions and Brackets

Knowing your tax deductions and brackets is essential for strategic planning:

• Standard vs. Itemized Deductions: For 2023, the standard deductions are $14,000 for single filers, $30,000 for married filing jointly, and $20,800 for heads of household.
• Tax Brackets: Understanding marginal and effective tax rates is crucial. Current brackets range from 10% to 36%, with changes expected in 2026.
• Future Planning: Anticipate and plan for bracket increases to minimize tax liabilities.

Maximizing Retirement Contributions

Joe and Alan highlight the importance of maximizing retirement contributions:

• Contribution Limits: For 2023, 401(k) contributions are capped at $22,500, with a $7,500 catch-up for those over 50. IRA contributions are limited to $6,500, with a $1,000 catch-up.
• Pre-Tax vs. Roth Contributions: Choose based on your current and expected future tax brackets to maximize savings.
• Solo 401(k) Plans: A valuable option for self-employed individuals to save more for retirement while reducing taxable income.

Health Savings Accounts (HSAs)

HSAs offer a unique triple tax advantage:

• Contributions: Tax-deductible contributions of over $3,000 for individuals and $6,000 for couples, with additional amounts for those over 55.
• Tax-Free Growth: Funds grow tax-free and can be withdrawn tax-free for medical expenses.
• Long-Term Benefits: HSAs serve as an excellent tool for covering healthcare costs in retirement.

Tax Loss and Gain Harvesting

Strategic harvesting of losses and gains can optimize your tax situation:

• Tax Loss Harvesting: Offset gains by selling investments at a loss to reduce taxable income.
• Tax Gain Harvesting: For those in lower brackets, selling investments to realize gains while paying zero tax up to the 12% bracket is a smart strategy.

Roth Conversions

Roth conversions provide long-term tax advantages:

• Tax-Free Growth: Move money from tax-deferred accounts to Roth IRAs by paying taxes now.
• Optimal Timing: Use your current tax bracket to determine the most advantageous time to convert.
• Backdoor Roth IRA: For high-income earners, this strategy allows indirect contributions to Roth IRAs.

Donor-Advised Funds and Charitable Contributions

Donor-advised funds combine charitable giving with tax efficiency:

• Immediate Deduction: Make large contributions in high-income years for immediate tax benefits.
• Flexible Giving: Distribute funds to charities over time while enjoying upfront deductions.

Tax Credits

Tax credits are often more valuable than deductions:

• Examples: Include foreign income tax credits, earned income credits, and education credits.
• Clean Energy Credits: Solar energy credits cover 30% of installation costs, and electric car credits offer up to $7,500.

Net Unrealized Appreciation (NUA)

For those with company stock in their 401(k) plans, NUA can reduce tax burdens:

• Cost Basis Taxation: Transfer stock to a brokerage account and pay taxes only on the cost basis.
• Capital Gains: Future gains are taxed at lower capital gains rates, making this a powerful tool for appreciated assets.

Filing Taxes and Payment Plans

Staying compliant with tax laws is crucial:

• Timely Filing: File returns on time to avoid penalties and legal issues.
• Payment Options: If you can’t pay in full, explore IRS payment plans or offers in compromise for manageable solutions.

Conclusion

Proactive tax planning is key to saving money and achieving financial stability in retirement. By understanding deductions, maximizing contributions, leveraging HSAs, and exploring strategies like Roth conversions and donor-advised funds, you can significantly reduce your tax burden. Take control of your taxes today and secure a financially stable retirement future.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post 10 Ways to Save on Taxes in 2025 appeared first on ROI TV.

1. Tax Benefits for Business Owners and Investors

The U.S. tax code is structured to reward financially educated business owners and investors. Unlike W-2 employees, these groups benefit from lower tax rates and higher deductions:

• Long-term capital gains rates for investors are significantly lower than regular income tax rates.
• Business owners qualify for numerous tax breaks that reduce their taxable income.

“The tax code is not written to benefit employees; it’s designed for business owners and investors who understand how to navigate it.”

2. Section 179 Tax Deduction

Section 179 allows business owners to deduct the cost of qualifying equipment, including vehicles used for business purposes. For instance:

• Vehicles weighing over 6,000 pounds, like the G-Wagon, qualify for significant deductions.
• Up to 60% of the vehicle’s cost can be deducted in the first year.

Proper documentation and justification to the IRS are essential to claim this benefit.

3. Depreciation for Real Estate Investors

Real estate investors can leverage depreciation write-offs to reduce taxable income:

• Standard depreciation for commercial buildings is calculated as 1/39 of the building’s value annually.
• Accelerated depreciation through cost segregation analysis allows for larger write-offs earlier in ownership.

This strategy can significantly reduce your tax burden, especially in the early years of a real estate deal.

4. Passive Losses and Real Estate Professional Designation

Passive losses from real estate investments can offset active income under certain conditions:

• Individuals with low adjusted gross income may deduct passive losses.
• Qualifying as a real estate professional removes restrictions on deducting passive losses against active income. This requires:
  • At least 750 hours annually of material participation in real estate activities.

5. Section 1031 Like-Kind Exchange

Real estate investors can use the Section 1031 exchange to defer taxes on property sales:

• Profits from selling an investment property can be reinvested into a similar property.
• This strategy allows for tax-free growth as the deferred taxes can be reinvested repeatedly.

6. Ordinary and Necessary Business Expenses

The tax code allows businesses to deduct expenses that are “ordinary and necessary” for operations:

• Examples include travel, meals, equipment, and even professional memberships.
• Proper documentation and IRS justification are required to claim these deductions.

“Keeping detailed records of your business expenses is crucial for maximizing tax benefits and staying compliant.”

7. Payroll Taxes and S Corporation Election

Switching from an LLC to an S Corporation can reduce payroll taxes:

• Only the salary portion is subject to payroll taxes; profit distributions are not.
• Ensure the salary is reasonable and aligns with industry standards to qualify.

8. Legal Protection through LLCs

LLCs provide a legal shield for personal assets against business liabilities:

• Properties owned by LLCs protect personal assets in case of lawsuits.
• Loans to the LLC can further safeguard equity, reducing liability risks.

9. Importance of Good Accountants and Attorneys

Professional guidance is critical for maximizing financial benefits and ensuring compliance:

• Accountants help identify eligible tax breaks and plan strategically.
• Attorneys provide legal protection and liability management.

“A good accountant and attorney are not expenses; they’re investments in your financial security.”

Final Thoughts: Turn Taxes into Opportunities

By understanding and leveraging the tax code, you can transform what might seem like a financial burden into a powerful wealth-building tool. Whether through deductions, depreciation, or strategic planning, the opportunities are vast for those willing to learn and act.

Ready to take control of your finances? Start leveraging these strategies today and watch your wealth grow while staying compliant with the tax code.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

For more from Jaspreet Singh go to www.roitv.com

The post Leveraging the Tax Code For Your Financial Benefit appeared first on ROI TV.

Electric Growth: Slowing But Still Record-Breaking

The numbers tell an interesting story. Through September 2024, EV sales climbed 7.2% year-over-year—hardly the lightning bolt of 47% growth seen in 2023, but still impressive. With nearly 1.2 million EVs expected to sell this year, electric cars will likely smash another record. Yet, they only account for 7.9% of all new vehicle sales—a modest uptick from 7.6% last year.

Translation? The EV market is maturing but still finding its footing.

Hyundai Ioniq 9: The Family Rocket

Leading the charge—both figuratively and literally—is Hyundai’s new Ioniq 9, a three-row electric SUV targeting busy families. This isn’t your typical school-run van. With seating for seven, over 300 miles of range, and a 0-60 mph sprint in just 4.9 seconds, it’s more rocket ship than minivan.

Charging is equally rapid. Thanks to its Tesla-compatible NACS port, the Ioniq 9 powers up from 10% to 80% in just 24 minutes. Imagine recharging your car faster than your phone.

But don’t expect it to come cheap. While official pricing hasn’t dropped, the Ioniq 9 is likely to cost more than its gas-powered sibling, the Hyundai Palisade, which starts at $36,800. As for EVs in general? The average price hovers at $56,328, nearly $9,000 more than traditional gas models.

Still, can you really put a price on zero tailpipe emissions and guilt-free acceleration?

Tax Credits: A Game of Political Ping-Pong

Here’s where things get…charged. The $7,500 federal tax credit, a lifeline for EV buyers, is under fire. President-elect Trump has pledged to scrap these credits, especially for leases. Given Republican control of Congress, it’s a real possibility.

That said, tax credits are currently baked into the Inflation Reduction Act, making their removal a legislative tug-of-war. If Hyundai plays its cards right—local production, U.S.-sourced battery components—the Ioniq 9 could qualify. For now, buyers eyeing these savings should act fast, as the future of these incentives remains uncertain.

Range Anxiety and Infrastructure: The Real Bottlenecks

Let’s address the elephant—or rather, the power outlet—in the room. Price isn’t the only hurdle keeping EVs out of every driveway. Range anxiety and charging infrastructure still spook mainstream buyers. While early adopters are happily zipping around in their Teslas, convincing the next wave of consumers requires more than flashy specs.

The solution? A broader lineup of affordable, practical EVs paired with massive investment in public charging stations. Until then, some drivers will remain tethered to gas-powered nostalgia.

Why Families Should Care About EVs

It’s not all doom and gloom, especially if you’ve got kids in tow. EVs are a game-changer for families. With flat floors and no bulky engines, electric SUVs like the Ioniq 9 offer significantly more interior space than their gas counterparts.

Need room for sports gear, groceries, and the dog? No problem. Fancy a quiet ride that won’t wake a sleeping toddler? EVs deliver on that front too. It’s practicality, performance, and peace of mind wrapped into one.

Competition Heats Up: The Family EV Market

The Ioniq 9 isn’t launching into an empty arena. It’s set to battle the Kia EV9, Tesla Model X, Rivian R1S, and newcomers like the Cadillac Escalade IQ and Volvo EX90. More players mean more choices, and frankly, more fun for us consumers.

What’s Next for EVs?

Fifteen new EV models debuting in 2025 signals a pivotal year for electric mobility. From family haulers to sleek sedans, automakers are pushing variety like never before. But can they truly win over the everyday driver?

Between political uncertainty, infrastructure gaps, and persistent price disparities, the industry has its work cut out. Yet, the promise of cleaner air, quieter rides, and cutting-edge technology might just tip the scales.

So, will you make the switch? Whether you’re a petrolhead or a die-hard Tesla fan, one thing’s for sure: the EV story is only just beginning. Stick around as we cover every twist and turn in the electrified road ahead.

The post The EV Revolution: 15 New Models Set to Electrify U.S. Roads in 2025 appeared first on ROI TV.