Year End Tax Strategies: Last-Minute Moves to Slash Your Business Tax Bill
The final weeks of the year are your best—and sometimes only—chance to implement powerful Year End tax strategies that can dramatically reduce your business’s tax bill.
At Americore Group, we know that the difference between overpaying and optimizing your tax bill has a December 31 deadline. The good news is that it isn’t too late – yet. Many business owners miss out on substantial savings simply because they think they already waited too long to act. While nearly all tax saving strategies must be done by year end, there is still time to make critical moves.
Supercharge Equipment Purchases with Enhanced Deductions
One of the most powerful yet underutilized Year End strategies is maximizing equipment deductions. Thanks to the One Big Beautiful Bill Act, the Section 179 expensing limit is now $2.5 million for 2025, with a phase-out at $4 million. Even better, 100% bonus depreciation is back for qualified property acquired and placed in service after January 19, 2025.
Pro Tip: Your equipment must be purchased AND operational by December 31, 2025, to qualify for these deductions.
The Hidden Gold Mine: Obsolete Inventory Deductions
Most business owners overlook the opportunity to deduct obsolete or damaged inventory. If you dispose of or offer unsellable inventory at a reduced price within 30 days after your inventory date, you can write down its value and claim a business loss for 2025.
Action Step: Conduct your Year End inventory now and identify items for clearance by January 30, 2026.
Year End Retirement Plan Contributions: A Double Win
In case the holidays have you a little distracted, here’s your reminder to act now. A traditional 401(k) has to be established by year-end, not next April when filing taxes. For 2025, SEP IRA contributions can reach up to $70,000, offering significant deduction potential.
Bonus: Enhanced startup credits are available for businesses with fewer than 50 employees, making this Year End move even more attractive.
Accelerate Expenses, Defer Income
If you’re a cash-basis taxpayer, year end is your window to pay outstanding bills, stock up on supplies, or prepay for 2026 services. Checks mailed in 2025 count as 2025 payments—even if not cashed until 2026. Conversely, delay invoicing until January to push income into 2026.
| Year End Business Tax Moves | ||
| Strategy | Deadline | Key Benefit |
| Section 179/Bonus Depreciation | 12/31/2025 | Immediate expensing of equipment |
| Obsolete Inventory Deduction | 1/30/2026 | Write-off unsellable inventory |
| Retirement Plan Contributions | 12/31/2025 | Large deductions, future wealth |
| Accelerate Expenses/Defer Income | 12/31/2025 | Control timing of deductions and income |
“The ones who save the most on their tax bill? In my experience, they act early, set up well-thought-out strategies and let the savings build wealth for their future,” notes a Forbes Business Council expert Forbes.
Act Now for Maximum Year End Savings
At Americore Group, we specialize in uncovering Year End opportunities that traditional advisors often miss. Don’t let 2025 slip away without maximizing every available tax benefit. Contact our Westlake Village office today to schedule a conversation on planning. It costs you nothing but could save thousands and even millions of dollars. Ask us how.