Don’t miss this quick overview of what to expect in 2025, as forecasted by Ren’s in-house tax expert, Joseph Gianforte:

Key tax changes:

• • Tax Cuts & Jobs Act (TCJA) Extensions: Many provisions from the 2017 tax reform will be extended through at least 2028, including:
    • Individual tax rates (top rate remains 37%)
    • Section 199A deduction for pass-through entities
    • 60% AGI limit for cash contributions to public charities
  • SALT Deductions: The $10,000 cap on state and local tax deductions will be doubled.
  • Estate Tax Exemption: Reduced from $27.98M for married couples but will remain above $10M.
  • Miscellaneous Deductions: Investment fees and similar deductions will still be nondeductible.

IRS and government outlook:

• • IRS Budget Cuts: Expect significant impacts on IRS functions:
    • Long wait times for calls
    • Delayed processing of paper-filed returns
    • Elimination of the Direct File service after 2025 due to lobbying by tax prep firms.
  • Social Program Reductions: Significant cuts in government funding will impact housing, education, food assistance, and charities, particularly those working with vulnerable populations.
    
    • • Charities will increasingly rely on large donations from wealthy individuals rather than smaller contributions.

Economic and industry trends:

• • Stock Market: The S&P 500 is expected to grow by 30%, with tech and AI driving growth.
  • Cryptocurrency: Bitcoin to surpass $150,000, though the crypto space remains largely unregulated.
  • Accounting Sector: Increased AI adoption will reduce demand for entry-level accountants in audit and tax functions.
    • Experienced CPAs will see higher demand.
    • At least one state will eliminate the 150-credit hour requirement for the CPA exam, potentially setting a trend for others.