In this webinar replay, Matt Schumacher, Director of Tax Planning, and Danny Torres, CPA and Director of Tax at Tavola Group, walk through key year-end strategies discussed in the session to help business owners reduce taxes and plan proactively. The conversation focuses on practical actions that can be taken before December 31 to uncover missed opportunities, improve cash flow, and strengthen your financial position.
If you are unsure which of these strategies apply to your business or want help reviewing your year-end position, schedule a complimentary tax strategy consultation with Tavola Group. Our team can help you identify opportunities and close the year with confidence.
Why Year-End Planning is Critical
Matt opened the session by emphasizing that the last quarter of the year is the most important time to influence your tax outcome. While many strategies apply year-round, decisions made now can significantly reduce your current-year liability. The goal is not just compliance, but proactive planning that aligns tax strategy with long-term business goals.
Section 179 and Bonus Depreciation Explained
Danny began with one of the most impactful year-end tools: accelerated depreciation. Section 179 allows businesses to immediately expense qualifying equipment and certain property placed in service during the year, up to $2.5 million for 2025, with a phase-out beginning at $4 million.
He also explained how bonus depreciation can be used alongside or instead of Section 179. Unlike Section 179, bonus depreciation is not limited by taxable income and can create a loss. Timing matters, especially for assets placed in service during 2025, as updated rules may allow for 100 percent bonus depreciation. He also confirmed that used equipment qualifies if it is new to the business.
Timing Income and Expenses Before Year-End
The webinar highlighted how the timing of transactions can affect taxable income. Businesses using the cash method may benefit from accelerating deductible expenses such as rent, insurance, supplies, or professional fees. In some cases, prepaying up to twelve months of certain expenses may be allowed.
On the income side, business owners may be able to defer revenue by delaying invoices or services, depending on their accounting method. Danny stressed the importance of coordinating these decisions with a CPA to ensure proper treatment.
Using Bonuses and Retirement Contributions Strategically
Year-end bonuses were presented as both a tax strategy and a business tool. Paying bonuses before December 31 creates a current-year deduction while improving employee morale and retention.
Retirement contributions offer another opportunity. Employer contributions to plans such as 401(k)s or SEP IRAs reduce business taxable income while helping owners and employees build long-term savings. Danny noted that contribution limits must align with earned income, making advance planning important.
Charitable Giving and Donor-Advised Funds
The session also covered charitable strategies that can increase tax efficiency. Donating appreciated assets, such as stock, allows the taxpayer to deduct the full fair market value while avoiding capital gains tax.
Danny also discussed donor-advised funds, which allow taxpayers to make a larger contribution in the current year, take the full deduction now, and distribute funds to charities over time.
Tax Credits That are Often Overlooked
Danny explained that tax credits provide dollar-for-dollar reductions in tax liability, making them more powerful than deductions in some cases. Opportunities may include research and development credits, work opportunity credits, and energy-related incentives.
He also cautioned that some credit provisions are scheduled to expire in the coming years, making proactive review especially important.
Pass-Through Planning and State Tax Strategies
For S corporations and partnerships, the webinar addressed the importance of reviewing compensation, distributions, and payroll structure before year-end. Proper planning can help manage payroll taxes while supporting retirement and cash flow goals.
The discussion also covered pass-through entity tax elections, which may allow state taxes to be deducted at the federal level. In addition, businesses operating in multiple states should review potential nexus and compliance requirements to avoid unexpected liabilities.
Real Estate Opportunities for Tax Savings
Real estate strategies were another key topic. Cost segregation studies can accelerate depreciation and generate larger deductions in the current year. In certain situations, real estate losses may offset other income, depending on activity levels and income thresholds.
Danny also reviewed 1031 exchanges as a way to defer gains when selling one property and reinvesting in another.
Accounting Methods, Entity Structure, and Clean Books
The webinar emphasized the importance of choosing the right accounting method based on how the business operates. In some cases, changing methods may improve tax efficiency, although this requires additional planning and IRS approval.
Matt and Danny also stressed the value of reviewing entity structure as the business grows, as well as maintaining accurate financial records. Clean books and strong documentation make proactive planning possible and reduce audit risk.
Partner With Tavola Group for Smarter Tax Planning
Throughout the session, one message remained consistent: year-end tax planning is about making intentional decisions now to avoid missed opportunities later. The strategies discussed are most effective when they align with your overall business goals and financial position.
If there is one thing to remember from this webinar, it is this: after December 31, your tax professional can only record history. Right now, you still have time to influence the outcome.
Schedule a complimentary tax strategy consultation with Tavola Group to review your situation, uncover potential savings, and build a proactive plan before the year ends.
