Issue #15: September 2025

Congratulations to this month's sponsored giveaway winners:
Morrison M., Angela L., Willis P., Paul K.

Life

Turning 40 and a couple big career changes

This month I celebrated my 40th birthday, and in just a couple of weeks my wife and I will celebrate our 13th anniversary. I was fortunate to sneak away for a couple of weekends in Las Vegas and Deep Creek Lake with friends and my twin brother. We had a great time, made some memories — and got very little sleep. A big thanks to my wife for holding down the fort and letting me enjoy those getaways.

Milestones like these naturally lead to reflection, and I’ve made a couple of big decisions. By the end of the year, I’ll be winding down my travel advisor business. I’ll share more about that in the Travel section below.

I’ve also decided to return to my role as a patent examiner. I stepped away in January for a nine-month break, which was refreshing, but I realized our family needs more stability, especially when it comes to health insurance. I’ve also missed the structure of a steady schedule. One underrated perk of a W-2 job is the ability to truly unplug on vacation — something I haven’t been able to do while running a business.

I received a tentative job offer with a proposed start date of September 22nd — which means I may be back at it as soon as next Monday.

Personal Finance

2025 Tax Update: Standard Deduction vs. Itemizing

As we head into year-end planning, it’s helpful to know where the IRS has set the numbers for 2025. The standard deduction got a small bump thanks to inflation adjustments, and the big news is the change to the SALT (State and Local Tax) cap.

Standard Deduction (2025)

Single: $15,000
Married Filing Jointly: $30,000
Head of Household: $22,500

Most taxpayers will take the standard deduction. But if your deductible expenses are higher, you may benefit from itemizing.

Popular Itemized Deductions

State & Local Taxes (SALT): income or sales tax + property taxes (on your home, cars, boats, etc.)
Real estate taxes: for primary and secondary homes (note: rental property taxes go on Schedule E instead, not SALT).
Mortgage interest: on qualified loans (limits apply).
Charitable contributions: cash or property donations to qualified nonprofits.
Medical & dental expenses: to the extent they exceed 7.5% of your Adjusted Gross Income (AGI).
Casualty/theft losses: in federally declared disaster areas.

SALT Deduction in 2025

This is where the biggest change comes in. For years, SALT deductions were capped at $10,000, which hit high-tax states especially hard. Starting in 2025, the cap jumps to:

$40,000 for married filing jointly (and single filers)
$20,000 for married filing separately

There’s also a phase-out for higher-income households — the SALT deduction starts to shrink once Modified Adjusted Gross Income (MAGI) passes $500,000 (joint).

Takeaway: For many households, the higher SALT cap means itemizing may once again be worthwhile. If your combined mortgage interest, charitable giving, and property/state taxes add up beyond the standard deduction, you may see real savings.

If you have any personal finance questions or a suggestion for a future topic, please submit them to mrfrugalee@gmail.com.

Real Estate

Rates Finally Dropping... a little

It’s been a quieter summer in real estate for me. The slower pace gave me more time with family and space to reflect, but it also comes with the challenge of going months without steady income — a reminder of why financial reserves are so important. I usually recommend 3–6 months of reserves for dual-income households and 6–12 months for single-income households. Fortunately, I have three transactions projected to close in the next month.

We’re finally starting to see mortgage rates tick down a bit, and buyers are slowly returning to the market. What happens next with prices is less certain — supply is still tight, and any drop in rates could spark renewed competition. Right now, I’m working with about ten buyers, most of whom are taking a patient approach. Sellers, on the other hand, are finding it harder to get top dollar unless they’ve invested in preparing their homes.

One bright spot: listings with assumable loans. These remain a fantastic opportunity, and two of my pending closings involve loans at 2.25% and 2.375% — rates that feel almost impossible in today’s market.

If you’re thinking about buying, selling, or just want to talk through what’s happening locally, don’t hesitate to reach out. No pressure — I’m always happy to share what I’m seeing.

If you have any real estate questions, reach out to me at RealtorDannyLee@gmail.com.
Follow me on Instagram @RealtorDannyLee

Travel

Why I'm Dropping Another Business

It’s hard to believe it’s been almost two years since I joined Fairy Godmother Travel as a travel advisor. After much thought, I’ve decided it’s time to step away from this business. I originally joined after having a wonderful experience as a client with my mentor, Michelle Shumate, and I’ll be transitioning my clients to her capable hands.

This has been a rewarding journey, and I’ve learned a lot along the way. But I’ve also realized I’ve been spreading myself too thin. Over the past few years, I’ve made a conscious effort to narrow my focus — first stepping away from tenant representation and rental listings, then property management — to concentrate on buy/sell transactions in real estate.

I enjoy trying new things, but time is a limited resource, especially while my kids are young. I want to be intentional with how I use it. For example, when the league coordinator asked four times for volunteers, I finally said yes to coaching my son’s baseball team. That meant I had to say no to other commitments.

In life, it’s often easier to say yes than to say no — but sometimes the best growth comes from stepping back, reflecting, and making intentional choices about where to focus.

I'll also be dropping this section from my newsletter in the future.