Ensure Your Business Isn't Overpaying: Essential Mid-Year Tax Strategies for 2025

Every April, business owners often face the shock of a hefty tax bill and the realization: “I could have managed this better with some pre-planning.”

This year, don't wait until it's too late. Now is the opportune moment to implement strategies that curb the dreaded year-end tax burden.

If your business is thriving this year—now is the time to outmaneuver tax inefficiencies before the last quarter locks your options down. Let's start today.

3 Essential Mid-Year Tax Strategies for Proactive Business Owners

1. Optimize Your Depreciation Strategy—Capitalize on Bonus Write-Offs

Purchases of equipment, vehicles, or software this year might entitle you to accelerated depreciation under Section 179 or the bonus depreciation provision. It's essential, however, to:

  • Plan these acquisitions prior to year-end to maximize available benefits

  • Be aware of the ongoing bonus depreciation phaseout

Failure to discuss this with your accountant before December might result in missed opportunities. Image 1

Tip: Even if you lease certain assets, eligibility might still apply, depending on your business structure.

2. Amplify Retirement Contributions—Benefit Yourself First

Mid-year is the perfect time to evaluate retirement plans such as Solo 401(k)s or SEP IRAs. Alternatively, a defined benefit plan could be beneficial if high income becomes a trend.

Act now to:

  • Set up or adjust plans to capture tax-deferred savings

  • Lower your taxable income while building long-term wealth

  • Refine estimated payments using clearer Q3/Q4 income insights

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Though seemingly intricate, a defined benefit plan offers significant deductions for certain business models. Image 2

3. Coordinate Income and Expenses Strategically

While revenue control is limited, strategic timing of income recognition and expense logging can provide a significant advantage.

Possible strategies include:

  • Adjusting billing schedules

  • Prepaying certain expenses

  • Purchasing assets timely before depreciation rules shift

  • Leveraging strong cash flow to fund tax-efficient deductions

Note that various business entities, such as S corporations, partnerships, and sole proprietorships, possess unique timing rules.

Take Action for Significant Savings

Here's a scenario we frequently encounter:

  • Your business flourishes

  • Books are reviewed at the start of the year

  • An unexpectedly high tax bill arrives, and intervention options are narrowed

Dodge this predictable outcome by taking initiative now. Image 3

Need Fresh Insights into Your 2025 Tax Strategy?

If your tax strategy review is overdue by more than six months or your business operations have significantly evolved, it is imperative to reach out.

We can help you:

  • Identify overlooked deductions

  • Adjust evaluated taxes accurately

  • Implement calculated actions to safeguard your cash flow and future financial health

Contact our office for a proactive approach to reviewing your taxation landscape before Q3 culminates. Tax season doesn't have to be daunting when you integrate it into your ongoing business strategy.

Have Questions?
Let's talk. We are here to help!
Contact Us
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