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(502) 426-0000 ∙ Roberts.cpa 201 Townepark Circle, Ste B-1 Louisville, KY 40243 163 Dennis Drive Lexington, KY 40503 MONEY AND MEANING Smart Money Monthly December 2025 A SEASON OF SMART GIVING
Our decisions over the next few weeks could change our lives forever. In addition to preparing for another busy round of holiday shopping and family gatherings, the remaining days of 2025 usually prompt us to take stock of how our lives have gone over the past year and set the foundation for our future. For most of us, planning for the road ahead involves a three- pronged focus on or families, overall health, and financial stability. I hope you’ll end this year positively with all these areas in balance, ready to step confidently into the new year. If your reflections on 2025 help you realize there’s room for improvement anywhere, now’s the time to chart a new course … and contact me as soon as possible if your next tax return requires extra consideration and care. Of course, this time of year is also when our spirit of giving is often at its highest. That said, some charitable donations have the added benefit of tax incentives that can go a long way in helping you achieve your personal goals in 2026 and beyond. When considering how your generosity could impact your taxes, factoring in your annual standard deduction is essential. To use random numbers as an example, let’s say you have a standard deduction of $27,000. If you donate $20,000 to charity throughout the year, you can’t take advantage
of any tax benefit associated with that donation because your standard deduction is still higher. However, you still have an opportunity to reap the rewards of a charitable donation lower than your standard deduction: a donor-advised fund (DAF). Here’s how it works: You place funds into a DAF in a given year that will be disbursed to a recipient charity over time, and you get the tax break for the year you placed the money into the fund. So, suppose you put an amount higher than your standard deduction into the DAF. In that case, you can direct the disbursement of those funds over several years but receive the tax benefit of donating the lump sum in a single year. One catch to this option is that the money placed in the DAF is irrevocable , meaning you can’t get it back once it’s in there. Fidelity Charitable and Charles Schwab are just two institutions that can work with you to set up a fund of this nature. As you review your charitable options, be aware that donations made to political candidates, political parties, or Political Action Committees (PACs) are not tax-deductible. Donors can only receive deductions by supporting entities recognized by the IRS as 501(c) (3) organizations. Examples of 501(c)(3)s include the United Way, the Norton Children’s Hospital Foundation, most university foundations, and registered churches. You can often find an organization’s 501(c)(3) status on its website, or you can contact it directly to verify its status before contributing. By exploring the right options, you can support a cause dear to your heart while also helping your economic status at home. Please let me
know if you’d like more information on charitable donations and how to take advantage of the tax incentives they provide. In the meantime, enjoy the blessings of another holiday season and the gift of the coming new year. —Kevin Roberts
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Keep More in the Family Reduce Taxes With Strategic Gifting
When planning your legacy, gifting during your lifetime is thoughtful and strategic. Not only do your loved ones receive an early boost, but you may also shield more of your estate from federal taxes. Let’s break down six smart, actionable, and strategic ways across all states. Tap the annual gift tax exclusion. Every year, you can gift up to $19,000 per person (or $38,000 if married filing jointly) without trimming into your lifetime exemption or filing a gift-tax return. The best part is you can repeat it and share the love with an unlimited number of people. Over time, that’s a significant aggregation of tax-free transfers. Use your lifetime exemption. In 2025, the lifetime exemption is at $13.99 million per individual (and nearly $28 million for couples). In July 2025, Congress made the exemption amount permanent, so speculation about it dropping to half in 2026 has been laid to rest. In fact, the lifetime gift and estate tax exemption will increase to $15 million ($30 million per couple) on Jan. 1, 2026.
Make direct payments that don’t count as gifts. You can pay unlimited amounts directly to medical providers or educational institutions for someone else's benefit. These payments bypass the annual exclusion and the lifetime exemption limits, making them powerful and clean ways to help without tax consequences. Leverage trusts for smarter transfers. Qualified Personal Residence Trusts (QPRTs): Transfer your home to a trust while retaining the right to live there for a set term. The gift’s taxable value is reduced thanks to the IRS’s calculation of your retained interest, meaning you minimize the use of your exclusion and remove future appreciation from your estate. Just be sure to outlive the term to reap the benefits. Intrafamily Loans: Loan money to loved ones at the IRS’s minimum applicable rate (when interest rates are low). If assets purchased with those funds appreciate, that growth shifts out of your estate and no gifting is required (unless you later forgive the loan).
Explore upstream gifting. If your parents or grandparents have estates far smaller than yours, you might gift appreciated assets upstream, allowing them to hold and later pass the assets down with a useful step-up in basis that reduces capital gains tax for future generations. Avoid estate inclusion with life insurance planning. Putting a life insurance policy into an Irrevocable Life Insurance Trust (ILIT) can remove it from your estate so the death benefit passes tax-free to beneficiaries. But watch out for the IRS's three-year rule: Gifting the policy within three years of your death will bring the full value back into your estate. A great workaround is to have the ILIT purchase the policy outright. Gifting isn’t just financially savvy; it’s personal, philanthropic, and full of upsides for both giver and receiver. Thoughtful planning now lets your legacy grow, live on, and stay largely intact. ABSURD SPLURGES OF THE SUPER-RICH
LUXURY LUNACY
If you’ve never bought your bride a bejeweled toilet or spent $2 million to clear your sinuses, have you ever truly lived? Here are a few jaw-dropping examples of how the mega-rich spend their money. The World’s Priciest Words How much is a centuries-gone genius’s personal insights worth in the modern age? Exactly $31 million. That’s how much Microsoft co-founder Bill Gates paid to purchase one of Leonardo da Vinci’s surviving journals in 1994. Fortunately for the rest of us, Gates chose not to hoard the knowledge contained in the most
$2 Million for Moisture Celine Dion rose to international acclaim via her musical contribution to the 1997 film “Titanic,” but her most lucrative endeavor involved a considerably drier environment. As part of her $100 million deal to perform a residency at Caesar’s Palace in Las Vegas, she requested that a $2 million humidifier be installed on the stage. This demand wasn’t entirely a display of diva attitude; she feared the desert’s dry air would damage her voice and hinder her ability to perform. The extravagant upfront expense proved a small concession for Caesar’s Palace, which ultimately benefited from featuring one of the world’s most popular singers in her prime. High-Flying Headwear From his star-making performance at the 1985 Live Aid concert to humanitarian efforts to end global poverty, U2 frontman Bono has advocated for the advancement of the developing world for decades; however, he still has first-world problems now and then. One day, while in Italy, the globe-traveling vocalist realized he had left his favorite hat in London. Naturally, he did what any of us would do in this situation and paid around $1,500 to have the hat flown more than 1,000 miles to him first-class.
expensive book in history. After scanning the pages, he created CD-ROMs of the documents and made them available to the general public for around $30 a copy. Bank-Busting Bathroom Breaks Even a media-facing megastar like singer/
actress Jennifer Lopez requires valuable alone time. Although her marriage to actor Ben Affleck recently dissolved, there was a time when her former husband lavished her with wondrous gifts … including a custom toilet seat complete with rubies, pearls, sapphires, and diamonds. The posh porcelain treasure reportedly set the actor back $105,000, proving that divorce can flush away more than loving feelings.
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Inspired by HalfBakedHarvest.com
Crispy Prosciutto and Cheese Sliders
INGREDIENTS
• 3 oz thinly sliced prosciutto • 1 package dinner rolls, halved lengthwise • 1/4 cup fig preserves • 3/4 cup shredded fontina cheese • 3/4 cup shredded Swiss cheese • 1/2 cup melted butter DIRECTIONS
• 2 tbsp Dijon mustard • 2 tbsp Worcestershire sauce • 1 tbsp chopped fresh thyme • 2 chopped garlic cloves • Black pepper, to taste
GOLDEN GOALS Did you know that Roberts CPA Group offers more than tax services? Lowering your taxes is a critical goal at any age, but it’s essential as you age. At Roberts CPA Group, we strategize with our clients to help ensure their tax obligations lessen, not increase, as they approach retirement. However, this peace of mind involves more than reducing your tax burden; it also means making sound decisions with your income and investments. That’s why we’re proud to offer financial planning and investment management. To set the foundation for future economic strength and security, you first need to determine your savings rate. How much are you saving each month? Are you struggling to pinpoint ways to save more? Do you need guidance on how to make your savings work harder for you? Scan the QR code to take our brief questionnaire to help you, and us, determine your ideal savings rate and create new wealth. From there, we will review your current budget and recent investment statements to set a more beneficial course. If you’re approaching retirement, we will review your Social Security statements and discuss ways to make your golden years even brighter. With 2026 right around the corner, seize the opportunity to gain a clear picture of your financial future. Complete our questionnaire and contact us today for a free consultation! Reimagine Your Savings and Retirement
1. Preheat oven to 400 F. 2. On a parchment-lined baking sheet, arrange prosciutto and bake for 8–10 minutes. 3. On a separate lined baking sheet, place the bottom halves of the rolls and spread fig preserves over them. 4. Layer with fontina and Swiss cheese. Top with crispy prosciutto. 5. Place the top half of the rolls over the prosciutto and gently press down. 6. In a bowl, mix butter, Dijon, Worcestershire sauce, thyme, garlic, and black pepper. 7. Pour butter mixture over rolls. Cover with foil and bake 10 minutes. 8. Remove foil and bake an additional 10–15 minutes, and separate before serving.
SUDOKU
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INSIDE THIS ISSUE 1 When Charity Meets Capital 2 Smart Gifting Moves to Protect Your Legacy Wild Ways the Wealthy Spend 3 Reduce, Reinvest, Retire Crispy Prosciutto and Cheese Sliders 4 The Hidden Price Tag on Clutter We’ve all been there: staring at a closet full of clothes and thinking, “I have nothing to wear.” Or paying rent for a bigger apartment just to store things we barely use. Clutter isn’t just a space problem; it’s a money problem. Every unused subscription silently chips away at your finances. The good news is that minimalism offers a way out. Far from being about deprivation, it’s about reclaiming control of your space, spending, and savings. The Hidden Price of ‘Stuff’ Every purchase comes with two price tags: the sticker price and the hidden costs. That $50 gadget isn’t just $50; it might also mean higher credit card interest if you’re carrying debt, or another box in the attic eating up storage space. The more we accumulate, the more we pay to maintain, store, clean, and eventually replace those items. That’s where minimalism comes in. It forces us to ask: “Do I really need this, or is it just clutter in disguise?”
THE COST OF CLUTTER How Minimalism Can Save You Thousands
Quality Over Quantity Minimalism doesn’t mean buying nothing. Instead, it’s about buying better. One high- quality pair of shoes can last for years, while three cheap pairs wear out quickly and cost more in the long run. Choosing durability and timeless designs over impulse buys protects your wallet and reduces waste. Simplifying Finances Clutter can even creep into your bank account. Old subscriptions, overlapping accounts, and unused memberships all nibble away at your budget. By canceling what you don’t use and streamlining your finances, you save money and reduce the mental load of tracking your bills. Downsizing Expenses One of the biggest financial wins of minimalism comes from downsizing. A smaller home or apartment doesn’t just mean lower rent or
mortgage; it also slashes utilities, maintenance, insurance, and even property taxes. More Space for What Matters A clutter-free environment frees up mental bandwidth. With fewer distractions, you can focus on what truly matters: building a side hustle, nurturing relationships, or enjoying a calmer, more intentional life.
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