IRS Releases New Tax Brackets For 2025 - What This Means For You

"the IRS just released their new tax brackets for 2025 which is why in this video I want to go over what these new tax rates look like so you know what to expect"

"any changes that this new presidential Administration makes is not going to go into effect until 2026 in terms of your taxes"

"you're going to get an increase in the standard deduction for 2025"

"you'd have to itemize more deductions than $155,000 if you're single"

"and more than $30,000 if you're married filing jointly"

"the two tax benefits that I want to discuss with real estate include depreciation and 1031"

"for single family homes that means you take this $160,000 and you divide it by 275 and that means you get to take about a $5,800 tax write off for doing nothing except owning a property that's now one year older"

"if you make under $100,000 a year you can take up to a $25,000 passive loss"

"if I made a million dollars a year hypothetically and then I have this loss I'm not going to qualify to take this passive loss against my active income but what I could do is I could say I am a real estate professional or my spouse is a real estate professional and because one of us are real estate professionals now we can take this passive loss and deduct it against my active income"

"what 1031 says is if you take all $400,000 and he uses money to go out and buy a bigger rental property you spent all $400,000 buying more rental properties but now you don't have to pay a penny in taxes today you were deferring all of these capital gains taxes"

"you can't do this every 6 months you have to own the property for at least one year at the very least"

"as a stock market investor remember you qualify for what's called long-term capital gains so the top tax rate for Warren Buffett is not 37% it's 20%"

"when you own your own business you get to qualify for What's called the ordinary and necessary deduction so I want to talk about that the ordinary and necessary deduction says that you get to deduct expenses from your Revenue before you pay taxes for things that are ordinary and necessary for you to run your business"

"you and your business partner and your staff have to go out to eat at some nice restaurants maybe when you travel maybe you have clients that come over and you have to have meals with them and now you have to have a cost to pay for those meals"

"maybe you need a nice pickup truck may you need a nice Ford Raptor to run your business because you got to put a whole bunch avocados in the the bed of your truck and you have to go from manufacturing site to manufacturing site and because of that you you need this pickup truck to run your business and to to pick up these avocados and to distribute your guacamole well now your payments your lease payments your financing payments or a piece of the cost of buying the car if you buy cash which is what I recommend as a financially smart person buy that Raptor with cash but now you get to also deduct your cost of the car"

"what if now you start creating content for your social media Pages for your gu wakamole brand in your kitchen you got to have a nice kitchen to show off on your Instagram and your Tik toks because that's what people want to see and so in order to build the stage to shoot the videos for your avocado videos you may have an ordinary necessary expense in order to run the business which is remodeling your kitchen in order to build the stage to shoot the social media content in order to keep running your business"