Year-End Tax Planning for Busy CEOs

Strategic Moves to Maximize 2025 Savings

As 2025 winds down, even the busiest CEOs and business leaders have a golden opportunity to pause and sharpen their financial edge before the year closes. Year-end tax planning goes beyond a box to check.  It is a great strategy to boost company cash flow, reduce potential tax liabilities, and set the stage for a perhaps a more profitable 2026. With game-changing updates from the House Resolution 1 of 2025 (H.R. 1), shifting tariff rules, and fresh chances to claim valuable deductions and credits, now’s the time to connect with your tax advisor and make smart, proactive moves.

Here are some important updates to consider:

H. R. 1: A New Era of Tax Strategy

H.R. 1 earlier this year introduced sweeping tax reforms in 2025, offering significant opportunities for businesses and high earners to reduce liabilities and plan more strategically. Here’s a breakdown of the most impactful provisions you should know:

• Permanent bonus depreciation: Businesses can now deduct 100% of qualified property costs immediately, improving cash flow and reducing taxable income.
• Research & Experimental Expenditures: Domestic R&E costs can be expensed immediately starting in 2025.  Retroactive to 2021 or 2022 depending on the size of the company.
• Modified SALT cap: The new $40,000 ceiling (increased from $10,000) offers planning flexibility for state and local tax deductions.
• Enhanced QBI deductions: Pass-through entities can benefit from broader eligibility and increased thresholds.

Think of it as a financial tune-up: modeling a few scenarios now could reveal savings you didn’t expect.  Maybe this is a time for your business to consider accelerating deductions, deferring income, or rethinking how your business is structured under the new rules.  A deep dive with your income tax advisor into how the new law is reshaping business tax laws today can pay off in a big way tomorrow. Take time now before year end to ensure you’re truly taking advantage of the benefits this new legislation can bring to your business.

Managing Tariff Impacts on Your Tax Position

Tariff rules are evolving rapidly.  Throughout 2025, tariffs have been imposed and later rescinded and in certain cases re-imposed with different terms between the US and a number of other countries and on various goods.  It is important to stay informed of tariff changes if your company trades internationally and to have flexibility to quickly update operating software to reflect the new costs.  Here are a few key areas to keep in mind:

• Inventory timing: Consider timing your purchases to avoid tariff increases or take advantage of short-term breaks.  Perhaps buying in smaller lots is a workable solution if tariffs are being negotiated on the goods your company needs.
• Make the most of your assets: Evaluate whether imported purchases may qualify for fixed asset treatment.  This will allow you to take advantage of better depreciation benefits which could be a smart move that adds up fast.
• Keep pricing in sync: If your business operates across borders, it’s important to make sure your intercompany transactions reflect current market pricing including tariffs.

These strategies might sound complex, but with the right guidance, these adjustments can lead to meaningful savings and a smoother path into the new year.

Smart, Simple Moves to Boost Your Year-End Tax Strategy

With all the recent changes in tax law, it’s easy to feel overwhelmed. Some of the most effective strategies are still the simplest. Here are a few practical steps that can make a real difference to your company’s tax planning before the year wraps:

• Get ahead on expenses: Prepaying things like rent, bonuses, or vendor contracts can help you lock in deductions for 2025.
• Push income forward: If it makes sense for your business, consider delaying invoicing to reduce this year’s taxable income.
• Max out retirement contributions: It’s a win-win to support your employees and your future while lowering your tax bill. Contributions to qualified retirement plans like a 401(k) or SEP IRA are typically tax-deductible, reducing your taxable income for the year.  Retirement accounts grow tax-deferred, meaning your employees won’t pay taxes on gains until they withdraw.   This allows the investments to compound more efficiently over time, building a stronger financial future.  Lastly, offering generous retirement contributions can boost employee retention.
• Be proactive about accurate and timely financial records: Accurate books help you capture every possible deduction, credit, and write-off, which can significantly lower your tax bill. They also reduce the risk of costly mistakes, keeping you compliant and audit-ready. Work proactively with your tax advisor to provide cash-basis data to enable efficient development of tax projections and strategies. You’ll gain clearer visibility into your cash flow, making it easier to manage spending and investments. Plus, organized financials lay the groundwork for more accurate business forecasting, budgeting, how to potentially fund growth in the year ahead.

When you combine these year-end tax planning tactics with the new opportunities under H.R. 1 you can help your business build a stronger, more resilient financial foundation for the year ahead.  Our Partners are here to help your company excel and prosper, no matter if you’re wanting to improve cash flow, secure bank financing, grow profitably, or increase overall business value. We specialize in strategic planning and preparing businesses for successful transitions, including sale-readiness. And we collaborate with many of the nation’s top CPAs and tax advisors to deliver expert guidance tailored to your goals. As the year is winding down, use this information to meet with your tax advisor to make sure you’re not leaving money on the table!