Here are four powerful business tax deduction strategies you can easily understand and implement before the end of 2025.
- Prepay Expenses Using the IRS Safe Harbor
IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS
- Stop Billing Customers, Clients, and Patients
Here is one rock-solid, straightforward strategy to reduce your taxable income for this year: stop billing your customers, clients, and patients until after December 31, 2025. (We assume here that you or your corporation is on a cash basis and operates on the calendar year.)
- Buy Office Equipment
The One Big Beautiful Bill Act (OBBBA) reinstated 100 percent bonus depreciation and increased limits on Section 179 expensing, meaning 100 percent deductions are available on equipment or machinery that you buy and place in service before December 31.
- Don’t Assume You Are Taking Too Many Deductions
If your business deductions exceed your business income, you have a tax loss for the year. With a few modifications to the loss, tax law calls this a “net operating loss,” or NOL. And the good news is that NOLs can turn into future cash infusions for your business because you carry 2025 NOLs forward to future years.