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And it recently released new tax brackets for 2025.
Read on to see some ways to pay less in taxes, according to Singh.
Also seesix ways to prepare for filing your taxes before the new year.
you’re free to lower your income.
That way, now you qualify for lower tax rates and you pay less money in taxes.
Or it’s possible for you to work to increase your deductions.
That way, you have alower taxable amount.
A tax deduction reduces the amount of taxable income, resulting in a lower tax bill.
Taxpayers have two options when it comes to claiming deductions: standard deductions and itemized deductions.
In 2025, it will increase to $15,000 and $30,000, respectively.
To qualify for higher deductions, you have to have itemized deductions higher than the standard deduction.
Its often used for tax purposes to account for the wear and tear of a property.
Unlike with straight-line depreciation, these deductions arent equal each year.
Theyre larger at the beginning and smaller as time goes on.
Accelerated depreciation can also allow you to take a passive loss to reduce your tax bill.
1031 Exchange
Another strategy to reduce your tax bill onreal estate investmentsis through a 1031 exchange.
Long-Term Capital Gains Rate
There arecertain tax advantagesto being an investor as well.
To be deductible, a business expense must be deemed ordinary and necessary by the IRS.
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