Alright, welcome. We are back and we're going to start doing some regular
podcast episodes. I know it's been a few months,
but 2025 is going to be a big year of change,
of course. So it's, we're in May 2021. 2025, we've seen some roller coaster
of a ride on the stock market with cryptocurrency,
with real estate, with interest rates, and now the tax law.
Of course, the, yeah, the president changed.
And, uh, there's, there's been quite a few things people are excited about and
some things people are worried about. But right now,
big thing on my mind, because it was released this week,
and I wanted to make sure to get this out this week, because there's
some.
going away, some things are becoming permanent,
they'll be made permanent, but I'm not gonna dive into everything right now.
Like, part of me, you may have heard me say this in the past,
like, when it's not in law yet,
and I'll talk about the problem later. would make it become law,
but right now it's just, it's not in the law.
Like, it's hitting the news, some people think it's automatically law or already law.
It's not the law yet. These are just proposals.
So at first, the process, real quick for- a tax bill to become actual
tax law. It goes in the house,
what is it, the houseways and means committee.
That's where it's, that's where it is now,
and it just passed through that. And that's this bill that we're looking at
now. It's like three or four hundred pages. Once it goes through there,
then it needs to go through like a budget, like finance committee,
where they're really calculating, like, the impact on the economy from it.
If there's changes that need, need to be made, it would go back to
the houseways and means committee. But then.
Once it passes that, it goes to the house and they might make some
changes. So they could make changes or it might go through without any changes.
Then it needs to go to the Senate. And same thing,
there might need to be changes and might need to reconcile some things.
One. Once it passes the Senate and it's voted and it gets the majority
or whatever the rules are there, once it goes through the house,
the Senate, then it goes to the President's desk and can become law at
that point. Uh, we are expecting. Thank you for watching.
That the law will become retroactive in like in 2025.
Sometimes they will go back to like a January 1st. Sometimes they'll go back
just a few months, but sometimes they do make it retroactive as of.
A certain date, like say the date that they signed into law.
We, we don't know that for sure. Um,
but some high level changes. Um,
and actually, I'm, I'm just going to start with this one. I'm going to
talk about the ones that are like hitting the new.
Who's the one, the most popular ones are the most exciting ones for a
lot of people. Um, the first one is,
I get excited about this is the real estate depreciation,
the 100% bonus depreciation, which of course started in.
Umest 18 with that 1st trump tax cut bill.
And then it's been starting to expire.
It was going to set to expire at the end of next year but
they're looking to make that permanent, 100% bonus depreciation.
Uh, f for real estate investors,
it's, so it's, I think it's a great opportunity and I think it'll be
something that will help economic growth and help incentivize more investment
in buildings and equipment and growing business.
So that's, that's why I like that one. So that's 100% bonus depreciation.
One, the no tax on tips and the no tax on overtime.
Uh, both of those are in the bill currently.
And so tips in. Employees and, you know,
there's what every time a new bill comes out,
a lot of times there are opportunities. Like, I like to view it as
opportunities. There might be some opportunities to maybe receive more of your income as
tips. And if you're under, there are. We're going to be some income threshold.
I think it's a hundred and sixty thousand. If you make less than that,
your tips could be tax free. Your overtime could be tax free.
Um, but there might be some incentive.
There might be incentive to, to make.
Money in unique ways as long as it's legal and within the law,
I am definitely behind it. Uh,
so no tax on tips and overtime. Uh,
the other one, the big one, this one's the one hitting news,
the social security income. So on.
And the campaign trail, they, one of their goals or their trumps and some
of the things they were saying is that they didn't want any tax or
any income tax on social security income for seniors.
And and they kind of delivered on that,
Not, like, not really.
They can kind of say they helped, but they, they didn't.
So what they did, they, all they did was just increase the standard deduction
for seniors by $4,000. And social security income
still. That is taxable. They just increased the,
they just increased the standard deduction. But if you make social security income is
kind of odd, because if you, if that's your only source of income,
you're not paying tax on it anyways. You've got to be over.
Certain income threshold where part of it becomes taxable.
So it kind of does become a pretty complex calculation.
But like, if you have a hundred thousand dollar wage,
and say you're 65 and you're getting social security benefits.
Up. Eighty five percent of your social security benefits could be taxable.
But now, and that's if you have other income in addition to it,
but now it'll just be four thousand dollars less.
Um,
so it's a change, but not a mass.
It's a change for those seniors. And then the last one,
the child tax credit, bumping up,
we were, they had kind of talked about raising it to five thousand dollars
per kid. And I got, I got five kids. For me, that'd be like,
uuuh, twenty five grand,
that'd be insane. Cause right now it's two thousand dollars per kid.
But it would go up to where they've got it planned now.
It would go up to twenty five hundred dollars per child.
So it's not quite where they wanted it. But of course there's if they're
trying to balance the budget, if they're trying to get
the country out of debt, and if they're expecting pushback and overspending and the
tax cuts are over, like, negatively impacting, like the revenue coming into the government.
Too much. That's the pushback they're going to get.
So it looks like they've already made some compromises on that.
So that's it. That's it for now. That's,
we don't know. Remember, it's not law yet.
And so if you're buying real estate or equipment,
like, we don't have the hundred percent. The bonus depreciation yet.
We have the section 179 deduction,
which we did a podcast episode on a couple months ago.
Um, but right now it's not law.
I expect, I bet it takes at least a month.
I bet it's a month and a half, but I w- I would think
by the end of June, we will know what the lies and we'll,
we'll release some additional stuff at that point. Okay.
Well, have a good rest of the week and we will talk to you
next week.
