Cooper here. It’s that time of year again.
When business owners and partners ask the classic question: “Can I still do anything to lower my 2025 taxes?”
The short answer: yes, but only if you act decisively.
At Tannery, we don’t believe in scrambling at the finish line. Tax planning is about strategy, not panic. It’s about understanding how the latest tax changes affect you and turning them into real advantages.
That said, there are still a few things you can do today to impact the taxes you pay.
What Changed This Year (and Why it Matters)
2025 brought several meaningful updates to the tax code. The midyear package, informally called the One Big Beautiful Bill Act, reshaped deductions, depreciation, and income thresholds.
In plain English, there are more opportunities but less margin for error.
- Pass-through owners: The 20% Qualified Business Income (QBI) deduction remains, but the income thresholds and phaseouts have shifted.
- High-tax states: The SALT deduction cap rose to about $40,000, but it comes with tighter rules and higher audit scrutiny.
- Depreciation rules: Bonus depreciation and Section 179 expensing were extended—likely for the last time in this form.
If 2024 was about staying liquid and surviving inflation, 2025 is about precision. Choosing what to accelerate, what to defer, and what to document.
So where should your focus go before the ball drops?
1. Structure & Compensation: Align Form with Function
Your business structure isn’t just a tax label. It’s a lever. The right setup can change how much of your income gets taxed and when.
Ask yourself: Is my current structure still serving my future?
If you operate as an LLC taxed as an S Corp or partnership, make sure you’re capturing every eligible QBI deduction. If you’re a C Corp, confirm your pay mix—salary versus dividends—still makes sense under the new rules.
This is also the year to revisit owner compensation. You need to pay yourself “reasonable compensation” for IRS standards, but not so much that you lose tax efficiency. A short review in December can fine-tune both your income and your tax bill.
Tannery POV: We treat structure as a living tool, not a one-time setup. The best tax plan starts with how your income flows, not just where it ends up.
2. Investment Timing & Cash Flow: Use the 2025 Sweet Spot
Bonus depreciation was set to fade out, but 2025 quietly extended some of its benefits. This might be your last true “sweet spot” to buy equipment, vehicles, or property improvements and still claim an outsized deduction.
But here’s the catch. A deduction that hurts your cash flow isn’t a win.
Before December 31, review your spending plans through two lenses:
- Will this reduce my 2025 tax bill?
- Will it leave enough liquidity to start 2026 strong?
Sometimes shifting income or expenses by just a few weeks can change your effective tax rate.
Tannery POV: Tax planning isn’t about playing defense. It’s about sequencing smart moves that grow your after-tax net worth.
3. Purpose-Driven Planning: Giving, Retirement, and Legacy
Some of the most powerful tax tools don’t look like “tax moves” at all. They’re about aligning your money with what matters most.
If charitable giving is on your radar, 2025 is a strong year to act. You can gift appreciated stock, fund a donor-advised account, or use a charitable trust to lock in benefits while supporting causes you care about.
On the retirement side, review how your contributions and conversions fit your income level. High earners may benefit from a cash balance plan or a strategic Roth conversion while rates remain favorable.
And don’t overlook your estate plan. Gifting strategies and trust funding still carry meaningful advantages—but the paperwork must be in place before year-end.
Tannery POV: We connect the dots between tax, retirement, and legacy. A smart move today can ripple for decades.
Common Mistakes We’re Seeing This Year
- Waiting until January. Some elections and deductions must be locked in by December 31.
- Ignoring cash flow. A great deduction that drains liquidity isn’t strategy—it’s stress.
- Copying last year’s playbook. The 2025 rules are different.
- Going too clever. Aggressive SALT or entity maneuvers can create audit headaches.
- Failing to coordinate. Tax moves only work when they align with your business, investments, and estate plan.
How We Help (and Why it Matters)
At Tannery, our focus isn’t to make you tax compliant (though you will be). It’s to make you tax strategic.
We combine tax, accounting, and wealth management under one roof—so your financial decisions connect instead of collide. That’s why we build year-end plans early and tailor them to your numbers, not a checklist.
But even now, with the holidays approaching, there’s still time for smart steps.
You don’t need to overhaul everything before December 31. You just need to take one meaningful step that sets up next year’s plan.
Consider this your December audit:
What decision could your future self thank you for in January?
Because your CPA shouldn’t just file your taxes.
They should help you build wealth—on purpose.
