Take a look at our August newsletter!
AUGUST 2025
PATRIOTWEALTHNC.COM PHONE | 919.322.4113
New Deductions, Bigger Brackets, and the Return of “Tax Torpedoes” 2026 TAX LAW CHANGES: WHAT RETIREES NEED TO KNOW
Congress recently passed a major tax update, the One Big Beautiful Bill Act (OBBBA). Many of these provisions go into effect in 2026, and several will impact retirees and those approaching retirement. Here are the five most important changes — and how planning may help reduce your tax bill. BIGGER BRACKETS AND LARGER DEDUCTIONS The 10% and 12% tax brackets are expanding, which may allow more income to be taxed at lower rates. At the same time, the standard deduction is increasing. As a result, fewer taxpayers will benefit from itemizing deductions. However, strategies like grouping charitable gifts or medical expenses into one year may become more valuable. CHARITABLE CONTRIBUTIONS: MORE WAYS TO SAVE Beginning in 2026, even those taking the standard deduction can deduct up to $1,000 (single) or $2,000 (joint) for charitable giving. For those who itemize, the 60% of AGI cap remains, but a new 0.5% floor means smaller donations may carry less value
unless bundled together. This change strengthens the case for using tools like Donor-Advised Funds (DAFs) to group gifts, and it reinforces the value of Qualified Charitable Distributions (QCDs) from IRAs, which continue to bypass these limitations entirely. NEW DEDUCTIONS — EVEN IF YOU DON’T ITEMIZE Several new ‘below-the-line’ deductions are being introduced. These don’t reduce your Adjusted Gross Income (AGI), but they can still lower your tax liability:
a disproportionately large tax hit. Careful planning is key.
SALT DEDUCTION CHANGES The State and Local Tax (SALT)
deduction is increasing to $40,000 per return ($20,000 for MFS), with annual inflation adjustments. However, the deduction phases out for higher earners — starting at $500,000 of income for most filers. If you’re in a higher bracket or planning to realize capital gains, it may make sense to coordinate timing to stay below key thresholds.
AMT AND EXPIRING ENERGY CREDITS
•
Senior Deduction: $6,000 per person age 65+ (subject to phase‑outs) Tips Deduction: Up to $25,000 for workers reporting tip income
The Alternative Minimum Tax (AMT) will begin affecting more taxpayers in 2026 due to faster phase-outs and the return of SALT addbacks. At the same time, several popular energy tax credits are set to expire:
•
•
Overtime Deduction: Up to $25,000 for joint filers
•
Auto Loan Interest Deduction: Up to $10,000 if financing a new car assembled in the U.S.
•
Clean vehicle credit: Ends Sept. 30, 2025 Residential energy improvements: Ends Dec. 31, 2025
Many of these deductions begin to phase out at higher income levels. This can create “tax torpedoes,” where a modest income increase causes
•
CONTINUED ON PAGE 3 ...
These articles are designed to provide general information on the subjects covered. They are not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Patriot Wealth and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.
Investment Advisory Services is offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Patriot Wealth and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.
PATRIOT WEALTH | 919.322.4113 | P1
Your Guide to the Ultimate End-of- Summer Party
sunset and cooler evening temperatures. Enhance the party vibe with lanterns, string lights, or candles to create a cozy atmosphere as daylight fades. SERVE REFRESHING BEVERAGES Set up a self-serve drink station featuring a variety of options to cater to all guests. Include a signature cocktail, such as a fruit-infused sangria or a sparkling mocktail, citrus-infused water, and sodas and juices. This approach keeps guests hydrated and adds a festive touch. PICK A SEASONAL MENU Opt for a menu that highlights all things summer. Grilled vegetables, fresh salads, and light proteins like chicken or fish are great choices. For dessert, try a build- your-own ice cream sundae bar or fruit skewers with yogurt dip. FEATURE A CURATED PLAYLIST Music sets the tone for any gathering. Create a playlist that starts with mellow tunes during dinner and transitions to more upbeat tracks as the evening
progresses. This progression keeps the energy lively and encourages dancing or sing-alongs — the best way to entertain guests. ARRANGE THEMED DECOR Choose a theme to tie your party together. A tropical luau, garden party, or rustic picnic theme can guide your decorations, attire suggestions, and menu choices. Incorporate elements like themed tableware, centerpieces, and signage to reinforce the vibe you’re opting for. CHOOSE ENGAGING ACTIVITIES Plan interactive games or activities to entertain guests. Popular lawn games like cornhole, bocce ball, or a ring toss are crowd-pleasers. Or, you can get creative and set up a photo booth with fun props — those always promise a fun time. Remember, hosting a late-summer party is a great way to celebrate the last few months of the season. With thoughtful planning, your party will be a hit!
As summer winds down, there’s still time to host a memorable late-summer gathering that captures the season’s warmth and joy. Here’s how to plan an unforgettable party any guest would enjoy! EMBRACE THE GOLDEN HOUR Schedule your party in the late afternoon so your guests can enjoy the
LIVING ON LESS, GIVING AWAY MORE THE CURIOUS CASE OF THE HUMBLE TYCOON
Many people have an unending fascination with billionaires who live like ordinary people. If your net worth has hit 10 figures, why would you drive a 1986 Volkswagen? These four outliers’ habits are a stark contrast to today’s lavish celebrity lifestyles, stirring curiosity and respect for their apparent groundedness and strength. DAVID CHERITON Although this Stanford University professor and tech-company founder has an estimated net worth of $18 billion, he says he is offended by “people who build houses with 13 bathrooms … there’s something wrong with them,” Business Insider reported. An early investor in Google, Cheriton cuts his own hair, drives a 1986 Volkswagen, and has lived in the same house since 1981. But he’s not sitting on his wealth. He has donated nearly $45 million to universities in Canada and the U.S. FREDERIK MEIJER Meijer built his Meijer Thrifty Acres superstores into a 200-location chain that influenced Sam Walton’s founding of Walmart. Although Meijer’s net worth was estimated at $5 billion at the time of his death in 2011, he was known for
driving old cars, buying his suits off the rack, and staying in budget hotels. Much of his wealth went to universities and parks near his Michigan home. CHUCK FEENEY Although Feeney co-founded Duty Free Shoppers Group, a global retailer of luxury products, he didn’t use the products. In fact, he didn’t even own a house or a car. “I set out to work hard, not get rich,” Feeney said. He quietly donated more than $8 billion to benefit public health and disadvantaged children. Asked why he still rode the subway, Feeney, who passed away in 2023, cited a Gaelic proverb: “There are no pockets on a shroud.” WARREN BUFFETT No list of frugal billionaires would be complete without the Oracle of Omaha. The famed investor is set to step down as chairman of Berkshire Hathaway this year, but remains one of the leading minds in investing. With a net worth of $160 billion, Buffett still lives in a house he bought in the 1950s for $31,500 and eats breakfast from McDonald’s. Never known as an early adopter, Buffett carried a worn $20 flip phone until 2020 and has pledged to give away 99% of his fortune.
P2 | PATRIOTWEALTHNC.COM
... CONTINUED FROM COVER
If you’ve gone shopping lately, you may have a hard time remembering what month it is. We barely survived ‘Summerween’ in June, only to face Thanksgiving sales this month and Christmas-themed sales after Labor Day, followed by “Black October” (moved up from Black Friday). Patient Shoppers Score Savings All Year Sit Tight, Save Big
If you’re planning home upgrades or a vehicle purchase, acting before year-end may secure these credits while they’re still available. STRATEGIC TIMING MATTERS With so many new deductions, credits, and income phase- outs, the order and timing of withdrawals, gifts, and income recognition will play a much larger role in effective retirement planning. WHAT SHOULD YOU DO NOW? • Consider grouping charitable contributions or medical expenses in 2025 • Review whether Roth conversions or capital gains make more sense this year • Evaluate upcoming purchases or income events in light of phase-out thresholds • Schedule a time to review your 2025–2026 tax planning strategy We’ll work closely with clients to incorporate these updates into retirement income strategies and tax projections. If you’d like to discuss how the new rules may affect you, don’t hesitate to reach out. –Wes White
Welcome to the holiday creep.
Intent on grabbing customers early, retailers are stretching holiday seasons as long as possible. In keeping with the trend, Amazon doubled the length of its annual Prime Day in July to four days from two, suggesting the retailing giant may soon need to rename the event “Prime Week.” With all the scrambling of calendars, when can a frugal consumer get a real deal? Surprisingly, shoppers willing to wait may be able to snag better bargains than ever. Here’s why. Retailers are competing harder for a share of finite consumer spending. Many fear that waiting for customary sales events like Black Friday and Cyber Monday risks hitting consumers when they are already tapped out. Instead, they are pushing high-profit items early, giving consumers more time to shop. Bargain-hunters who see through this strategy have a lot to gain. The deepest price cuts will likely come on customary sales days, when panicky retailers that haven’t hit their sales targets offer their deepest discounts.
Summer Chickpea Salad Inspired by HowSweetEats.com
Here are a few periods when retailers’ promotions are most likely to really save you cash.
INGREDIENTS • 2 (15-oz) cans chickpeas, drained and rinsed • 4 green onions, thinly sliced • 2 ears grilled corn, kernels cut from the cob • 1 pint cherry tomatoes, quartered • 3 tbsp chopped fresh basil
• 2 tbsp chopped fresh chives • 1/4 tsp salt • 1/4 tsp pepper • 3 tbsp olive oil • 2 tbsp red wine vinegar • 1 1/2 tbsp honey • 3 garlic cloves, minced or pressed • 1 lime, zested and juiced
October: Halloween deals will be old news before the holiday is even over. Look for clearance sales on Halloween items, plus early deals on electronics and holiday toys.
Black Friday: This may be the best time to buy discounted TVs, laptops, appliances, gaming devices, and smart-home gear.
Cyber Monday: Look for sales on clothing, travel, and tech accessories. Consider using an app like ShopSavvy for new deals or Honey to receive notifications of price drops for targeted items. The Week Before New Year’s Day: This time of year, clothing, especially winter coats and other cold-weather gear, drops in price. Also, holiday decor and wrapping will be sold for as much as 90% off!
DIRECTIONS 1. In a large bowl, combine chickpeas, onions, corn, tomatoes, basil, and chives. 2. Toss well with salt and pepper and set aside. 3. In a small saucepan over low heat, add oil, vinegar, honey, garlic, lime juice, and zest. 4. Whisk until the mixture is warm and garlic begins sizzling. 5. Pour over the chickpea mixture and toss well to coat. 6. Cover with plastic wrap and refrigerate for at least 30 minutes before serving.
Remember, to the patient shopper go the spoils of a year of heavy discounting! Happy bargain-hunting!
PATRIOT WEALTH | 919.322.4113 | P3
PATRIOTWEALTHNC.COM PHONE | 919.322.4113
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
4350 Lassiter at North Hills Ave. #240 Raleigh, NC 27609
INSIDE THIS ISSUE What’s Coming in 2026 for Tax Law PAGE 1 Host the Perfect Late-Summer Bash Before Fall Rolls In PAGE 2 Rich, Frugal, and Practically Invisible: Billionaires You’ll Never See in Gucci PAGE 2
Summer Chickpea Salad PAGE 3
To Stretch Your Budget Further, Skip Early Seasonal Sales PAGE 3
Nantucket’s Timeless Allure PAGE 4
WHALES, WINE, AND WHIMSY
WHY NANTUCKET SHOULD BE YOUR NEXT GETAWAY
When many Americans think of vacation destinations, they envision beautiful state parks, sunny beaches in Florida or California, and the mountains of Appalachia and the Rockies. However, many states across the country offer exciting events and beautiful scenery. If Massachusetts isn’t already on your radar, consider giving it a closer look the next time you plan a vacation. Cape Cod has beautiful beaches and a rich history that many don’t know about, and something exciting is always happening in Boston. But if you want to experience the true essence of Massachusetts, take a trip to Nantucket.
Nantucket is a small island, only 14 miles long and about 3.5 miles wide. Its history with European settlers goes back over 500 years. First sighted by an Englishman named Bartholomew Gosnold in 1602, the island was settled by colonists 50 years later in 1659. Not long after, they spotted whales offshore, which put Nantucket on the map. Whaling became the ultimate trade for people living in the area, and the island even became the world’s whaling capital until the 1850s. You can still view whales from the island today, and if you want to get the full story, check out the Nantucket Whaling Museum.
If whale watching and museum touring aren’t your thing, you can pursue other exciting activities around Nantucket. The island is bike-friendly, and many trails will take you by all the best sights. Many one-of-a-kind boutiques occupy beautiful historic buildings, and there’s even a public golf course that will leave all your golfing buddies jealous. If you go in May, you may even experience the renowned Wine & Food Festival. Nantucket is full of historic architecture, beautiful scenery, and friendly people. You might even see a famous face during your visit! This is a vacation you’ll be talking about for years to come!
P4 | PATRIOTWEALTHNC.COM
Page 1 Page 2 Page 3 Page 4Made with FlippingBook Ebook Creator