Tax Changes: 7 Takeaways

Filing your taxes for 2025 comes with several important changes that could affect how much you owe and which deductions or credits you can claim. Here’s a look at a few of the  changes under the One Big Beautiful Bill (OBBB), passed last year. Understanding these changes now can help you plan ahead, reduce your taxable income, and make smarter financial decisions.  

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.

January 2026 Market & Economic Update

Markets entered 2026 with a more cautious tone as investors balanced steady areas of the economy against signs of slowing momentum. Inflation has continued to ease from prior peaks, but job growth and consumer confidence have moderated, reflecting ongoing uncertainty around costs and economic conditions. While the overall economy remains on solid footing, markets have become more sensitive to incoming data as expectations around interest rates and growth continue to evolve.

Equity markets experienced some volatility during the month, driven by a mix of global events and shifting expectations for Federal Reserve policy. Market leadership remained concentrated in certain areas, while broader participation was more uneven. This type of environment often rewards diversification and patience, rather than short-term reactions to headlines.
 

Gold and Diversification
Gold performed well in January as some investors looked for stability amid uncertainty. Gold often draws interest during periods of market volatility or economic transition, as it has historically acted as a long-term store of value. While gold prices can fluctuate in the short term, it can serve as a helpful diversifier within a balanced portfolio.

Your Local Resource for Expert Financial Guidance and Support

Capstone built our reputation on friendly service, impeccable ethics, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

info@capstoneinvest.com