Don’t Miss Out — Why Year-End Tax Planning Matters in 2025

As 2025 comes to a close, now is the time to review your finances and make smart moves that could lower your tax bill. Year-end tax planning is about being proactive — taking advantage of deductions, credits, and strategies that expire when the clock strikes midnight on December 31.

This year, the new One Big Beautiful Bill Act (OBBBA) has brought important updates that impact both individuals and businesses. Understanding these changes — and acting before year-end — can make a big difference in how much you keep in your pocket.

What Year-End Tax Planning Means

Think of year-end tax planning as a financial check-up. It’s about adjusting your income, expenses, and investments before the year ends to reduce what you’ll owe come April. Once 2025 is over, many opportunities are gone for good.

Strategies for Individuals

• Maximize Retirement Contributions

  Contributing to IRAs, 401(k)s, or SEP plans can reduce taxable income while building long-term savings.
• Use Capital Gains & Losses Wisely

  If you sold investments for a profit, you may be able to offset those gains with losses from other holdings.
• Charitable Giving

  Donations to qualified charities — whether in cash or through donor-advised funds — can still deliver meaningful tax savings.
• Key OBBBA Changes (in plain language):
  • The standard deduction has been raised, but some personal deductions were scaled back.
  • The Child Tax Credit has been expanded but phases out faster for higher earners.
  • Certain itemized deductions now have tighter limits.

Strategies for Businesses

• Time Income & Expenses

  Accelerating expenses or deferring income can reduce taxable income for 2025, depending on your situation.
• Leverage Section 179 & Bonus Depreciation

  The OBBBA raised the limits for Section 179 deductions, giving businesses more flexibility. However, bonus depreciation was reduced from prior years, making timing decisions more important.
• Pass-Through Income (QBI Deduction)

  The income thresholds for the 20% Qualified Business Income (QBI) deduction have shifted under the OBBBA — meaning planning around your taxable income is essential.
• Review Business Credits

  While some credits were expanded, others are phasing down. A quick review could reveal valuable opportunities before year-end.

Why Act Before December 31?

Waiting until tax season is too late. By reviewing your financial picture now, you can:

• Avoid surprise tax bills.
• Make the most of deductions and credits while they’re still available.
• Set yourself up for a stronger 2026 with a clear plan.

Every household and business is unique, and the new OBBBA changes make personalized planning more valuable than ever.

Schedule Your Year-End Tax Planning Session

The best way to navigate these updates and opportunities is with professional guidance. At our firm, we help individuals and businesses build strategies tailored to their goals — so nothing is left on the table.

Don’t wait until January. Contact us today to schedule your year-end tax planning session.