3 Tax Moves Entrepreneurs Need to Make Before 2025 Ends
However, many entrepreneurs are unaware of the tax law updates that make the fourth quarter a critical window for reassessing their business structures and tax strategies.
Review Your Entity Structure
Moreover, the wrong entity structure can lead to costly mistakes, but these mistakes aren’t irreversible, and a strategic change can save entrepreneurs $100,000 or more.
Consequently, it’s essential to review your entity structure, especially with the recent changes in the tax law, to ensure you’re taking advantage of the best option for your business.
Use Bonus Depreciation Strategically
Meanwhile, bonus depreciation is a powerful tool that allows businesses to deduct a larger portion of the purchase price of qualifying assets in the year they are acquired.
Therefore, with the recent reinstatement of 100% bonus depreciation, entrepreneurs can take a massive tax deduction in the year they purchase a property, creating significant tax savings.
Look Closely at Your State and Local Income Taxes
In addition, the new tax legislation has increased the SALT deduction to $40,000 in 2025, but it still requires careful analysis to ensure you’re paying the lowest tax necessary.
Therefore, it’s crucial to rerun your numbers to ensure that you’re making the optimal choices this year, especially with the workaround still in place in many states.
Your Q4 Action Items
However, to take full advantage of the recent tax law changes, entrepreneurs need to complete a full review of their tax strategy and make necessary adjustments in time.
Therefore, schedule a meeting with your CPA or tax advisor to review these three points as well as your overall tax strategy and make an informed decision.
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