Smart Moves for a Lower 2025 Tax Bill

Take Advantage of Section 179 Deductions

As summer rolls along, business tends to slow down a tad, making it the perfect time for a strategic check-in — especially regarding your taxes. While it might not seem urgent, acting now can ease the drama of tax season next year. One effective tactic is leveraging Section 179 deductions. If you were planning to procure new equipment or software, doing so now lets you benefit from immediate deductions. Instead of depreciating over years, these costs can significantly offset your current taxable income.

Maximize Retirement Contributions

Are you making the most of your retirement accounts? Contributing to a 401(k), IRA, or SEP IRA not only bolsters your future finances but also reduces your taxable income today. The sooner you contribute, the more you gain from compounding interest. It’s a savvy way to build security while managing your tax obligations efficiently.

Review Your Business’s Deductions

With the slower pace of summer, it's an excellent opportunity to assess your expenses. Accurate recordkeeping is essential to capitalize on deductions. Consider everything — travel, office supplies, insurance. By keeping meticulous records now, you’ll be well-prepared to maximize deductions, saving money and avoiding stress later.

Accelerate or Defer Income and Expenses

Timing is everything. Depending on your expected revenue for the year, you may find it beneficial to either accelerate or defer income and expenses. If your business expects higher earnings, deferring income to the following year might be advantageous. Alternatively, if a leaner year is expected, pulling forward expenses into the current year can result in immediate tax savings.

Make Note of Tax Credits

Don't miss out on valuable tax credits. Whether you’re investing in energy-efficient upgrades, enhancing accessibility, or engaging in product innovation — these actions can grant you significant tax breaks. Familiarize yourself with the criteria now to optimize these opportunities and potentially save big on your upcoming tax bill. These strategic actions can lead to significant savings and better financial health for your business. By focusing during this peaceful mid-year moment, you alleviate stress and ensure you're not leaving money on the table. Don’t hesitate to reach out for a mid-year tax check-in for personalized assistance. Together, let's pave the path toward a more secure and lucrative 2025.