Business Tax Planning

Top 5 Year-End Tax Strategies for Small Business Owners in 2025

Top 5 Year-End Tax Strategies for Small Business Owners in 2025

Top 5 Year-End Tax Strategies for Small Business Owners in 2025

As 2025 draws to a close, small business owners have a prime opportunity to reduce their tax liability and strengthen their financial position heading into 2026. Proactive year-end tax planning isn’t just about minimizing what you owe—it’s about making smart moves that align with your business goals.

Here are five essential tax strategies every small business owner should consider before December 31st:

1. Take Advantage of Section 179 and Bonus Depreciation Purchasing equipment, computers, or business vehicles before year-end can result in significant deductions. Under Section 179, you can deduct up to $1.22 million in qualifying business property (2025 limit) immediately. Additionally, 100% bonus depreciation still applies to eligible assets placed in service in 2025, making this a smart time to invest in your business.

2. Defer Income and Accelerate Expenses If your business operates on a cash basis, you may be able to defer income into 2026 and accelerate deductible expenses into 2025. For example, delay invoicing until January or prepay expenses like rent, utilities, or office supplies now.

3. Maximize Retirement Contributions Consider contributing to a SEP IRA, Solo 401(k), or SIMPLE IRA if you haven’t already. These plans offer substantial tax deductions while helping you save for retirement. For 2025, a Solo 401(k) allows up to $69,000 in total contributions (if you're over 50, due to catch-up contributions).

4. Review Your Business Structure Is your current entity type (LLC, S-Corp, sole proprietorship) still the most tax-efficient? As your income grows, switching to an S-Corporation may help reduce self-employment taxes. A year-end review with a tax professional ensures your structure still supports your financial goals.

5. Use a Tax Loss Harvesting Strategy If your business holds investments, now’s the time to evaluate capital gains and losses. Selling underperforming assets to offset capital gains can reduce your taxable income and rebalance your portfolio ahead of the new year.

Bonus Tip: Meet with a Tax Professional Now Don't wait until tax season to strategize. A proactive year-end review with your tax advisor can uncover overlooked deductions, prepare for estimated tax payments, and ensure compliance with new tax laws.

Need Help with Year-End Tax Planning? As a trusted tax advisor, I help small businesses like yours prepare smarter and save more. Book a consultation now to get your year-end checklist in order before deadlines approach.

📞 Call: (954) 906-0445 🌐 Visit: www.ledgerpro.net 📍 Serving U.S.-based and international clients virtually

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Andrew Galbraith

Andrew Galbraith

President

Andrew Galbraith, President of Ledger Pro Inc., is a seasoned accountant and QuickBooks ProAdvisor based in St. Petersburg, FL. With over 35 years of experience, Andrew specializes in providing tailored tax preparation, bookkeeping, and accounting services for individuals and small businesses. Known for his professionalism and accuracy, he is dedicated to helping clients streamline their financial processes and achieve their financial goals

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