Last Quarter Push: Year-End Tax Planning Opportunities Still Available

There is still time to work with your CPA and financial planner to see if there are any tax savings your business can implement now.

2025 is coming to an end, but small businesses still have time for tax planning.

The Legal Perspective

As a business attorney, I regularly see clients who missed planning opportunities simply because they waited too long. The intersection of business law and tax planning often involves entity structure decisions, employment considerations, and succession planning—all areas where early planning prevents costly mistakes.

Many of these strategies require coordination between legal, accounting, and financial planning professionals. Business structure changes, in particular, have both legal and tax implications that need careful consideration.

Last Quarter Push: Year-End Tax Planning Opportunities Still Available

As we head into the final months of 2025, many business owners assume it's too late for meaningful tax planning. The good news? There's still time to work with your CPA and financial planner to implement strategies that can significantly impact your tax liability.

Equipment and Capital Investment Opportunities

• Section 179 Deductions and Bonus Depreciation Internal Revenue Code Section 179 allows businesses to expense the full purchase price of qualifying equipment and/or software purchased during the tax year. When you buy a piece of qualifying equipment, you may be able to deduct the full purchase price on your business income tax return. Recent changes to the code raised the deduction limit to $2.5 million and allows deduction of 100% in some situations.

• Strategic Vehicle Purchases If your business needs new vehicles, timing these acquisitions before year-end can maximize available deductions through various depreciation methods.

Business Structure Considerations

• Entity Planning Decisions Now is the time to evaluate whether an S-Corporation election makes sense for 2026. While the deadline isn't until March 15th, planning ahead allows you to structure the transition properly and understand the implications for your business operations and tax situation.

• Retirement Planning and Income Timing Maximizing business retirement plan contributions can provide immediate tax benefits while building long-term wealth. Consider strategies around income timing—deferring income to 2025 or accelerating deductions into 2025—based on your projected business performance.

Cash Flow and Operational Planning

• Important Deadlines Don't overlook the September 15th deadline for Q3 estimated tax payments for both federal and North Carolina taxes. Missing this deadline results in unnecessary penalties and interest charges.

• Year-End Employee Compensation Strategic planning around year-end bonuses and compensation can optimize both deductions and payroll tax timing. Consider how these decisions impact both your tax position and employee satisfaction.

• Inventory and Working Capital Review your inventory management strategy to optimize both tax treatment and cash flow heading into 2025.

  
  

Employment Tax and Workforce Considerations

Year-end planning should include monitoring payroll tax caps, particularly Social Security wage base limits, and reviewing your North Carolina unemployment insurance experience rating to potentially minimize 2025 rates.

Succession and Estate Planning

If business transfers or succession planning are on your horizon, September valuations can offer advantages by avoiding the complexity of year-end financial results while capturing current market conditions.

Take Action Now

The most successful business owners are those who plan proactively rather than reactively. While tax planning might seem like something to address in December, the reality is that meaningful strategies require time to implement properly.

Your next steps are simple:

• Schedule appointments with your CPA and financial planner

• Review your current business structure and upcoming needs

• Evaluate any equipment or vehicle purchases on your horizon

• Consider your cash flow and compensation planning for year-end

Don't let another year pass without exploring every available opportunity to optimize your business's tax position. The strategies available now won't be available on December 31st, and the businesses that benefit most are those that act while options are still on the table.

The year isn't over yet—but the planning window is closing. Make sure you're not leaving money on the table simply because you waited too long to act.