1. SALT (State and Local Tax) Deduction Cap Jumps
$10K → $40K for 2025.
Investor takeaway: Homeowners in high-tax states can deduct more property/state taxes. Watch your Adjusted Gross Income (AGI) — benefits phase out above ~$500K.
2. Higher Standard Deduction
$15,750 single / $31,500 married.
Investor takeaway: Even if you don’t itemize, more income is shielded from tax — reduces your effective tax on investment income.
3. Child Tax Credit
Boost
$2,200 per qualifying child.
Investor takeaway: Families can free up cash for investing or retirement contributions.
4. Senior Deduction
Extra $6,000 single / $12,000 married for 65+.
Investor takeaway: Retirees can reduce taxable income, possibly lowering capital gains tax brackets.
5. Clean Energy Credits Ending
Most EV and home energy credits expired in 2025, others expire this year.
Investor takeaway: If you invest in solar, EVs, or energy upgrades for tax savings,
act sooner.
6. Tip & Overtime Deductions
Reduces taxable income for eligible workers.
Investor takeaway:
Less directly relevant to investing, but lowers AGI, which can affect investment tax thresholds.
7. Estate & Gift Tax Exemption Up
$15M individual / $30M married (effective 2026).
Investor takeaway: High-net-worth investors have more flexibility in transferring assets without triggering estate taxes.
Quick Tips:
- Re-evaluate itemizing vs standard deduction: high-tax-state homeowners may save significantly.
- Track AGI carefully — it affects SALT phaseouts, Net Investment Income Tax, and investment tax brackets.
- Consider timing asset sales or energy-related investments
before year-end to maximize deductions/credits.
- Plan for long-term wealth transfers using the new estate exemption.
Translating Tax Law into Financial Strategy
The Capstone team is here to help you apply these changes to your situation. It’s not just about “what changed,” but how it affects your retirement timeline, income needs, and tax exposure. Don’t hesitate to reach out with any questions.
More Information on Tax Strategy from Capstone:
Tax-Smart Investment Strategies
Harvesting Success: Growing Wealth through Tax-Loss Strategies
*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.