Keep pulling the thread on Bill Artseronian.
A new tax bill increases the cap on the state and local tax (SALT) deduction from $10,000 to $40,000.
A new tax provision taking effect next year will establish a floor for charitable deductions, making the first 0.5% of a taxpayer's Adjusted Gross Income (AGI) non-deductible.
A new tax provision will limit the value of deductions for taxpayers in the 37% tax bracket by treating their deductions as if they were in the 35% bracket.
Starting in 2026, catch-up contributions to retirement accounts for individuals over age 50 will be required to be made on a Roth (after-tax) basis.
Ritholtz Wealth Management employs a "gains harvesting" strategy for its New Jersey clients to utilize capital losses within the same tax year.
Since 2017, the federal deduction for state and local taxes (SALT) has been capped at $10,000.
The increased $40,000 SALT deduction is subject to a phase-out for taxpayers with total income exceeding $500,000.
The phase-out of the increased SALT deduction is complete for taxpayers with total income of $600,000, reverting their deduction cap to $10,000.
In response to upcoming tax law changes, Ritholtz Wealth Management is advising its high-income clients to accelerate charitable, SALT, and mortgage deductions into the 2025 tax year.