Steve Perry EA: Last-Minute Tax Strategies for 2025 Businesses

The 2025 tax year brings some of the biggest business tax changes in decades, thanks to the One Big Beautiful Bill Act (OBBBA). Smart owners who act now may lock in enormous deductions. Those who wait may lose them forever.

If you need help planning before December 31, call Steve Perry, EA at (678) 717-9818 or email [email protected].Message Steve directly on LinkedIn.

The Tax Breaks You Can Capture Right Now
OBBBA introduced new deductions, expanded old ones, and restored lucrative business benefits that many owners thought were gone for good. As 2025 closes, these areas offer the most immediate opportunities.

Section 179 Expensing Doubles for 2025

The Section 179 limit increases from 1.22 million to 2.5 million, and the phaseout threshold rises to 4 million.Businesses purchasing heavy SUVs or trucks over 6,000 pounds may immediately expense up to 31,300, compared to far lower limits for lighter vehicles.

100 Percent Bonus Depreciation Returns Permanently

Many owners believed bonus depreciation was phasing out. Instead, OBBBA restored the full 100 percent deduction, permanently, for property acquired after January 19, 2025.A transitional rule allows a business to elect 40 percent bonus instead, which may help avoid creating an unusable loss. Steve can help determine which strategy works best for your 2025 return.

Full Expensing Reinstated for Domestic Research and Software
Domestic R and E and software development costs may once again be expensed immediately.
Small businesses with 31 million or less in receipts may amend prior year returns back to 2022 to claim missed deductions.

A New One Hundred Percent Deduction for Qualified Production Property

Manufacturing businesses may now deduct 100 percent of the cost of certain nonresidential building improvements placed in service between July 4, 2025, and January 1, 2031.
This can produce substantial multi-year tax reductions for qualifying facilities.

Expensing for Film, Television, and Sound Recordings
Section 181 now includes up to 150,000 per year for qualified sound recording productions that begin before January 1, 2026. After 2025, 100 percent bonus depreciation applies instead.

New One Percent Floor for Corporate Charitable Contributions
Beginning in 2026, corporations may only deduct charitable contributions that exceed one percent of taxable income. Businesses planning 2026 contributions may want to accelerate them into 2025.

Installment Treatment for Farmland Sales
Qualifying farmland sold to a qualified farmer may spread capital gains tax over four equal annual installments beginning in 2026.

Other Critical Year-End Planning Areas

Retirement Plans
Retirement plan contributions reduce taxable income and strengthen employee retention.
Owners and spouses may maximize their own retirement funding through proper payroll planning.

HSAs and FSAs
These accounts reduce payroll tax, increase employee retention, and allow tax-free reimbursements for qualifying expenses.

The Qualified Business Income Deduction
The QBI deduction continues to allow up to 20 percent of eligible income to be deducted. Phase-in ranges expand in 2026, and a new minimum 400 deduction applies under certain conditions.

Rental Real Estate Considerations
Real estate owners should confirm whether losses are deductible and whether safe harbor documentation is complete for QBI qualification.

Vehicle Deductions Require Strong Documentation
The IRS frequently disallows vehicle deductions that lack proper logs, receipts, dates, and business purpose records.See how Steve Perry helps with tax compliance and documentation.

S Corporation Salary Requirements
S corporation shareholders that take distributions must be paid salaries that reflect the work performed. Poor documentation can lead to penalties and all distributions reclassified as income.Learn about reasonable compensation rules.

Energy Efficient Commercial Buildings Deduction Ending
The deduction becomes unavailable for construction beginning on or after June 30, 2026.

Commercial Clean Vehicle Credit Ending
Credits of up to $40,000 end for vehicles acquired after September 30, 2025.

Employee Retention Credit Enforcement Tightens
OBBBA prohibits the IRS from issuing or refunding ERC claims for Q3 and Q4 of 2021 if filed after January 31, 2024, unless refunded before July 4, 2025.

Act Now for Maximum Savings
Year-end planning is the most profitable time for business owners to evaluate purchases, retirement plans, compensation, entity structure, real estate activity, and R and E expensing opportunities.Steve Perry, EA helps business owners make tax-smart decisions before deadlines close.

Call Steve at (678) 717-9818
Email: [email protected]
Message Steve directly on LinkedIn.