7 End-of-Year Tax Tips for Businesses in 2025

By admin 01 Dec, 2025 taxes Business Ready, Tax Tips

2025 has been a volatile year for the American economy, and businesses from the smallest mom-and-pop shop to the biggest corporations have felt impacts. One major development was the passage of the One Big Beautiful Bill Act (OBBA), which will likely have significant impacts, particularly on businesses operating in more than one state.

As a business owner, now is the time to take steps to improve your tax footing before the year ends. Focusing on tax planning can save your business money and help you reduce your tax burden.

Keep reading to learn about some useful end-of-year tax tips you can implement in your business to help you prepare for the tax season ahead.

1. Adopt a Multi-State Mindset

The OBBA is expected to have significant effects for businesses with operations in more than one state, as state and local tax rules become more unpredictable. If your business has locations in more than one state, it’s essential that your tax planning and strategies are specialized for each location, with a particular focus on all states in which the business produces revenue. Now might even be the time to start seriously considering a change in location. To get more information on how your business should adapt in response to the OBBA, you should reach out to a Weslaco tax accountant for personalized insights.

2. Manage Your Bookkeeping

Accurate bookkeeping is one of the most important tax activities you can do before the year ends. This record-keeping process allows you to organize invoices, financial statements, and expenses in time so that your tax filing season runs smoothly. Armed with this information, you can reduce your taxable income and also meet tax deadlines.

To make your bookkeeping process even more efficient, you can use bookkeeping software to keep track of income and expenses in real time. It also helps to reduce manual errors and save time.

If you need assistance with your bookkeeping, don’t hesitate to turn to a capable Weslaco CPA.

3. Conduct a Reverse Audit

Another important end-of-year tax tip for businesses is conducting a reverse audit. With this method, you proactively examine your financial records, including franchise and overpaid taxes, and taxes paid on utilities. This audit helps you ensure that all your income, expenses, and deductions have been properly documented.

By conducting a reverse audit, your business can also spot errors or missing entries that can affect your tax liability. Catching these issues early makes it easier for you to make corrections and potentially reduce your tax burden.

The team here at Gonzalez & Arrambide, Inc., would be proud to help you conduct a reverse audit to protect your affairs.

4. Check Your Property Taxes

Sometimes, property taxes can be higher than we expected. Overlooking your property tax burden can lead to penalties or fines. As your business prepares for the end of the year, you can review your records to be sure there are no outstanding property taxes.

If your business has acquired a new property or equipment during the year, you will need to verify the implications such purchases have on your taxes. This can help ensure your purchases are accurately accounted for in your financial records.

5. Plan Your Finances for End-of-Year

Strategic financial planning is one of the most effective end-of-year tax tips you can practice. Consider adjusting your income or expenses to manage your overall tax liability. For example, you can consider deferring some income or purchases to the next year. Or you can make early payments to reduce this year’s taxable income. You can also take advantage of retirement contributions to lower your tax bill.

To learn more about tactics you can use to minimize your tax burden and maximize your return, you should consider turning to a capable Weslaco accountant.

6. Start Early on Tax Preparation

Starting your tax preparation at the last minute increases your chances of making mistakes and missing important documents. It also increases the chances of overlooking deductions or making errors that can lead to penalties.

To avoid these issues, you have to start early. Doing this can give you time to gather all the necessary records and receipts you need. You’ll also have the time to review your financial statements for accuracy. You can consult with a CPA to identify any last-minute opportunities for deductions.

7. Work with a Weslaco CPA

One of the smartest tax tips for the end of the year is to work with a Weslaco CPA. A CPA can help you understand tax laws and stay compliant with all regulations that apply to your business. They can also help you maximize deductions and credits and provide strategies you can use to lower your tax liability. Without a tax advisor by your side, you’re leaving yourself vulnerable to fines, penalties, and difficult audits.

Get Your Business Ready for Tax Season with Help from Gonzalez & Arrambide

To get your business ready for the upcoming tax season, it’s important to take steps to respond to tax law changes and prepare for your upcoming tax burden. At Gonzalez & Arrambide, Inc., we specialize in offering customized tax preparation services to help you maximize your returns. We can help you determine the right steps to take to best adapt to the OBBA.

Our team can help streamline your bookkeeping, carry out tax planning, conduct a reverse audit, and guide you through your property tax filing processes. If you want to make sure your business is ready for the upcoming tax season, consult a Weslaco CPA at Gonzalez & Arrambide.

Keep your business ready for tax season with help from an experienced Weslaco CPA.

End-of-Year Tax Tips for Individuals

By Admin 02 Dec, 2024 taxes End-of-Year, Individuals, Tax Tips, Weslaco

Tax laws can be a complex and confusing topic. With the right guidance, you can manage your taxes well, minimize liabilities, take advantage of deductions, and keep more of your hard-earned money.

Keep reading to learn more about essential end-of-year tax tips that can help you navigate the upcoming tax season smoothly and avoid problems in the future.

Tip 1: Take Required Minimum Distributions (RMDs)

If you’re 73 or older, you should take your yearly withdrawals by the end of the year to avoid a heavy penalty. Missing this deadline can attract a 25% penalty on the amount you failed to withdraw. You can also decide to reduce your RMDs in the future, especially if this income pushes you toward a higher tax bracket. Start early by reviewing your RMDs with a professional Weslaco tax accountant to avoid unnecessary penalties.

Tip 2: Maximize Your 401(k) Contributions

Take advantage of your employer’s retirement plan by contributing enough to receive the full match. If possible, contribute the highest amount possible so that you can lower your taxable income for the current year while increasing your retirement savings. If you also want to increase your chances for tax-free withdrawals in the future, consider contributing to a Roth 401(k) instead.

Tip 3: Use Tax-Loss Harvesting to Reduce Capital Gains

Tax-loss harvesting helps reduce your tax load by offsetting realized capital gains with capital losses. Imagine you have two plants: one is growing well, and the other isn’t. To help the growing plant, you can “trade” the unhealthy plant for a tax benefit. This means that, at the end of the year, you can sell underperforming investments to realize losses and offset taxable gains.

If you have more losses than gains, you can use up to $3,000 of those losses to offset another ordinary income. This method can lower your taxable income for the year. Work with a Weslaco CPA to understand which capital gains you can offset with tax-loss harvesting.

Tip 4: Watch Out for Alternative Minimum Tax (AMT)

Imagine the AMT is a special tax rule that can sometimes make your taxes higher, even if you’re not very wealthy. Originally, it was created to prevent the wealthy from using legal deductions to reduce their taxes. However, this tax is beginning to affect middle-class taxpayers, especially those who use deductions like state and local income or property taxes.

Since the AMT calculates taxes separately, you’ll have to pay whichever tax bill is higher. So, if you’re in the AMT territory for 2024, avoid paying the installments due in January 2025 because they won’t be deductible under the AMT in 2024. An experienced accountant can help you determine which AMT applies to you and your income.

Tip 5: Sell Losing Investments to Offset Gains

To reduce your tax liability, try using a strategy known as “loss harvesting.” You can offset any taxable gains you’ve realized this year by selling losing investments. For example, if you have more losses than gains, you can deduct up to $3,000 of the excess loss against another income.

Also, any additional losses can be carried forward to balance future gains. Not sure how to tap into loss harvesting? Consult an experienced Weslaco tax accountant to guide you.

Tip 6: Contribute the Maximum Amount to Your Retirement Accounts

Maxing out the contributions to your retirement accounts (like 401(k)s and IRAs) is a great way to reduce your taxable income. In 2024, the maximum 401(k) contribution is $23,000 ($30,500 if you’re 50 or older). If you’re unable to contribute that much, you can put in a contribution that your employer will match. These contributions are tax-deferred. This means they reduce your current taxable income and grow over time. The sooner you contribute, the sooner your funds can grow tax-free.

File Your Taxes Correctly With Help From Gonzalez and Arrambide, Inc.

Using these year-end tax tips for individuals can greatly impact your financial health. Whether you want to boost your deductions or avoid penalties, it’s important you take proactive steps to manage your taxes early. Our Weslaco tax accountants can help you achieve your financial goals while setting yourself up for success in the upcoming tax season.

At Gonzalez and Arrambide, Inc., we’re here to guide you through the complexities of tax season. Let our skilled staff help you understand what documents you need to file your taxes correctly and maximize your savings. Reach out to us today to start planning for a brighter financial future.

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