On this week's episode of THE FINANCIAL COMMUTE, host Chris Galeski and Scott Gilmore, CEO of Ascend Tax and Business Advisors, discuss upcoming tax law changes and how to maximize your tax benefits in 2025.

Here are some key takeaways from their conversation:

• Due to the January fires in LA, tax filing and payment deadlines have been extended to October 15th for individuals and businesses residing in Los Angeles County. 
• A Net Operating Loss (NOL) occurs when a taxpayer’s deductible losses exceed their taxable income in a given year. For those affected by the LA fires, net operating losses can be especially valuable. If someone suffered a significant loss—such as property damage that wasn’t fully covered by insurance—their casualty loss deduction could create an NOL. Since the fire occurred in January 2025, impacted taxpayers can choose to apply their losses to their 2024 tax return rather than waiting until 2025, which could allow them to reduce their 2024 taxable income and qualify for tax refunds.
• The estate tax exemption is expected to be reduced from around $14 million to $7 million in 2026, prompting some individuals to accelerate their gifting strategies.
• Taxpayers can use “bunching” (grouping donations into one year) or donor-advised funds to maximize deductions.
• The $10,000 SALT (State & Local Tax) cap may be removed if tax laws expire, but business owners currently benefit from workarounds like AB 150.
• 401k and other retirement contribution limits have increased for 2025, with a special catch-up contribution for those aged 60-63 allowing them to save more pre-tax.
• Given ongoing tax law shifts, individuals should engage with advisors to optimize tax strategies and ensure compliance.

If you or someone you know has been affected by the fires, Ascend Tax and Business Advisors is happy to take calls from non-clients and answer questions about available tax benefits. Visit their website here: https://www.ascendadvisors.com/