5 Easy but Effective Year-End Tax Strategies That Can Meaningfully Cut Your 2025 Tax Bill

As 2025 comes to a close, business owners and other high-income individuals still have an opportunity to make strategic moves that can materially reduce their tax liability and improve cash flow. Thoughtful year-end planning is one of the highest-ROI activities you can undertake—and acting before December 31 is essential to capture the benefits.

Here are five high-impact strategies I’m discussing with clients right now:

Manage Income & Deductions Before Dec. 31

Strategically timing income, bonuses, major expenses, and equipment purchases can help smooth taxable income and maximize deductions—including preserving the §199A deduction for eligible owners. These decisions get harder once we hit January.

Take Advantage of 100% Bonus Depreciation

With 100% bonus depreciation restored under the One Big Beautiful Bill, qualified property placed in service can be fully expensed—creating immediate, powerful deductions. Pairing bonus depreciation with §179 elections can further accelerate write-offs for equipment, technology, vehicles, and improvements.

Optimize Owner Compensation & Retirement Structures

S-corp reasonable comp reviews, profit-sharing contributions, and advanced retirement structures (Solo 401(k), defined benefit, or cash-balance plans) can significantly reduce taxable income. Several of these require action before year-end to capture the benefit.

Clean Up Balance Sheet & Basis Issues

Year-end is the perfect moment to review shareholder loans, document advances properly, write off bad debts, reconcile distributions, and confirm partner/shareholder basis. These small cleanups often prevent large, unexpected tax consequences later.

Use Advanced Planning Tools

R&D credits, PTET elections, QSBS planning, charitable vehicles (Donor Advised Funds/Charitable Remainder Trusts), and other advanced levers can materially improve your tax position—but only if evaluated early enough to implement correctly.

Bottom line: There is still time to materially reduce your 2025 tax liability—but the clock runs out on December 31.

If you’d like a quick review of your structure or a customized year-end tax plan, feel free to reach out. I’m helping many business owners and high-income individuals do exactly this as we head into year-end.

DISCLAIMER: This summary is provided for informational purposes only and does not constitute legal, tax, or financial advice. The application of tax laws can vary based on individual circumstances, and the provisions of the “One Big Beautiful Bill” are complex and may evolve through future guidance or regulation. Readers are strongly encouraged to consult with a qualified attorney or tax advisor before acting on any of the information contained herein.