IRS Releases 2025 Tax Brackets

by | Nov 7, 2024 | Noteworthy

The Internal Revenue Service released the updated income tax brackets, standard deduction, and retirement contribution limits for the 2025 tax year. While these changes won’t impact you for some time, it may benefit you to start thinking ahead.

The top rate remains 37%, but remember that 2017’s Tax Cuts and Jobs Act expires at the end of 2025. Overall, more than 60 provisions have changed at the federal level. Here are a few of the most critical changes in the federal tax bracket and retirement contribution limit. While the IRS has highlighted its changes, keep an eye out for any changes to individual and business taxes that may be pending in your state.1

Tax Bracket Inflation Adjustment
Overall, tax brackets have been adjusted upwards for 2025. This adjustment is based on the Consumer Price Index and primarily accounts for inflation.

Standard Deduction
The standard deduction has increased to $30,000 for married couples filing jointly, up $800 from the previous year. For single filers, this number increased by $400 to $15,000.

Marginal Rates
Marginal tax rate brackets are also increasing.

Gift Tax
The annual gift tax exclusion for 2025 is $19,000, an increase of $1,000 from the previous year.

Estate Tax Credit
Individuals receiving an inheritance in 2025 will be able to exclude $13,990,000 from federal taxation, up from $13,610,000 in the previous year.

All information sourced from IRS.gov. Remember that we provide updates for informational purposes only, so consult with your tax professional before making any changes in anticipation of the new 2025 levels. You can also contact our offices, and we can provide information about the pending changes. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t levy a state income tax.
1. IRS.gov

Happy Halloween!

by | Oct 31, 2024 | Noteworthy

Hot Dog Inflation at the Ballpark

by | Sep 27, 2024 | Most Popular, Noteworthy

When you hear “hot dog” and “inflation” in the same sentence, you might think of those supermarket franks that plump up when cooked. In this case, we’re talking about the original dogs of the ballpark, a cultural touchstone of America’s pastime.

The average price of a Major League Baseball (MLB) hot dog across the 30 North American ballparks is $5.99, and that’s for the lowest-priced hot dog offered at the parks. That average covers a wide range, including the $8.39 “Colossal Dog” offered at Oakland Coliseum, home of the Athletics, and a $2.99 option at Chase Field, where the Arizona Diamondbacks play.1

You’ll need to grab your passport if you’re looking for the cheapest dog in the MLB. When you take in a Toronto Blue Jays home game, you can find a $2.55 hot dog at Roger Centre.1

From the chart, you can see that seven of the top ten highest-priced dogs are for teams that may not make the playoffs. On the other hand, eight of the ten least expensive dogs are at stadiums where teams are fighting for a playoff spot.

While consumers are used to seeing a mark-up on concessions at movie theaters, concerts, and sporting events, MLB offers a relatively inexpensive option compared to the National Football League (NFL).

The average cost for a family of four is $180.54, which figures tickets, parking, beverages, and (of course) hot dogs. That range is higher in some cities, over $320 in Los Angeles (the Dodgers) or Boston (the Red Sox), and lower in others. A family can see a game for under $140 in a handful of lower-end markets: the Cincinnati Reds, Colorado Rockies, Cleveland Guardians, Kansas City Royals, and Chicago White Sox.2

The reason for the boosted prices? Concessions play a big part in maintaining the grounds and paying for the teams. Dodgers pitcher Shohei Ohtani inked a $700 million, 10-year contract with the team. That means the Dodgers hope you show up to the game hungry!2

As the season winds down, I hope you have enjoyed a few games, whether at the ballpark or at home. At my house, the dogs always come dressed the way I like them and are considerably less expensive!

1. Sports Business Journal, May 6, 2024
2. The Street, April 12, 2024

Happy Labor Day

by | Aug 30, 2024 | Noteworthy

As we celebrate Labor Day, we can think about the hard work we perform for our communities. We can also consider the work of those before us and how their efforts helped build this great nation we know and love.

I hope you have a great Labor Day weekend!

Special Edition from Jack Reutemann

by | Jul 26, 2024 | Noteworthy

Friends, Family, Clients,

The market’s charts look worse than the actual numbers. The S&P 500 is down 4.62% from its all-time high. While not catastrophic, it’s a significant drop. As usual, we’ve adopted a defensive stance to protect our substantial SPXL gains by equally increasing our SPXS (short) position. Additionally, we hold four sub-sectors that have outperformed in the past ten days: KRE (regional banking), IJS (small-cap 600 value), XHB (homebuilders), and IJR (small-cap 600). These sectors exhibit strong charts and fundamentals and diverge from the broader indices.

This market environment reinforces the necessity of sector and sub-sector expertise when traditional 60/40 portfolios falter. It’s disheartening to see millions still relying on Vanguard, Fidelity, and Blackrock’s one-size-fits-all approach. (Please refer to “JPMorgan Monthly Guide to the Markets, page 4”.) It’s astonishing how many people repeatedly ignore history and the potential for recurring market cycles.

Please don’t hesitate to contact me with any questions.

Best regards, 

Jack

Happy Independence Day

by | Jul 2, 2024 | Noteworthy

Happy 4th of July! Whether you’re celebrating with a cookout, a family gathering, or watching the fireworks with friends, Independence Day reminds us how lucky we all are to belong to this great nation.

Enjoy the long weekend and join us in giving thanks for the freedoms we hold so dear.

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