• calendar_month October 23, 2024
• folder Tax News

As a real estate professional, I understand how important it is to stay informed about changes that could impact your finances. In 2025, the IRS is expected to adjust federal tax brackets for inflation. This means the income thresholds determining how much you owe in taxes will rise, reducing the tax burden for many. These adjustments help protect taxpayers from "bracket creep," where inflation pushes people into higher tax brackets, even if their purchasing power hasn't increased.

For 2025, the IRS will likely increase the standard deduction and income limits for each tax bracket. This could result in lower taxable income for many, potentially lowering the amount of taxes owed. For example, if you're in the 22% tax bracket, more of your income will likely fall under the lower 12% or 10% brackets due to these adjustments.

For homeowners and real estate investors, this adjustment can be beneficial as it may free up more income for investments, home purchases, or savings. Understanding these changes can help you plan your financial decisions more effectively and keep more money in your pocket.

Stay tuned as more details are released, and consult with a tax professional to understand how these changes may apply to you specifically.