Year-End Tax Moves: How Business Owners Can Legally Cut Their 2025 Tax Bill Before December 31st

LYMER JOVER
1 day ago
2 min read

Introduction

Every year, countless business owners wait until tax season to think about taxes — and end up leaving money on the table. The good news? Some of the biggest savings opportunities happen before the year ends. By acting in the final months of the year, you can reduce your next tax bill, improve cash flow, and start the new year with confidence.

1. Review Your Entity Structure Before Year-End

Your business structure has a direct impact on how much you pay in taxes.

Shifting from a sole proprietorship to an S-Corporation could lower self-employment taxes.
Some growing businesses may benefit from C-Corporation advantages, like expanded deduction options.
Pro Tip: Evaluate your entity now — changing in January may be too late to realize benefits for this tax year.

2. Maximize Retirement Contributions While You Still Can

Retirement plans are among the easiest ways to lower taxable income.

Solo 401(k) or SEP IRA contributions made before the deadline can still count for this year’s taxes.
If your profits were higher than expected, consider a Cash Balance Plan to defer even more.
Pro Tip: The earlier you make contributions, the sooner they can start compounding for retirement growth.

3. Accelerate Deductible Expenses Strategically

If your business had a strong year, you can reduce your taxable income by bringing forward certain expenses:

Prepay vendor contracts, software subscriptions, or office supplies.
Upgrade equipment or technology you’ll need next year.
Pro Tip: Always check that the expense is ordinary and necessary for your business — and keep receipts organized.

4. Consider a Cost Segregation Study (for Property Owners)

Owning commercial or rental property? A cost segregation analysis can shift part of your building costs into shorter depreciation schedules.

This can create large deductions right away, instead of spreading them over decades.
The earlier the study is done, the sooner you can claim those accelerated deductions.

5. Capture All Eligible Credits

Credits lower your tax bill dollar-for-dollar — don’t miss out.

R&D Credits for developing new products or improving processes.
Energy-Efficient Building Credits for upgrades that save power.
Work Opportunity Credits if you hired qualifying employees.
Pro Tip: Credits often have documentation deadlines, so start reviewing eligibility now.

6. Plan the Timing of Income & Invoices

Timing matters — especially for businesses using cash-basis accounting.

If appropriate for your cash flow, delay invoicing late-December work until January to push income into the next tax year.
Conversely, if you expect higher taxes next year, it may make sense to pull income forward.
Pro Tip: Coordinate this with your accountant to avoid cash-flow issues.

Conclusion: Don’t Wait for April — Act Now

These strategies can make a meaningful difference in your 2025 tax bill, but most only work if you act before December 31st.

At Jolcel Consultancy Services, we specialize in proactive, IRS-compliant tax planning that helps entrepreneurs keep more of what they earn.

📞 Call-to-Action

Get ahead of tax season. Schedule your free 20-minute year-end tax assessment now and see how much you could save.

Book Now via Email or call 571-656-9546

⚖️ Disclaimer

Tax savings vary based on each client’s unique financial situation. The information in this article is for educational purposes only and should not be considered personal tax advice.