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Peacock & French CPAs
Dec 01, 2025

The holidays may be in full swing, but December isn’t just about festive lights and family gatherings. For individuals and business owners in Venice, Florida, it’s also the last—and best—chance to make smart financial decisions that can significantly reduce your upcoming tax bill. Once the clock strikes midnight on December 31, many opportunities to lower taxable income or maximize deductions for the year vanish.

The good news? With a little proactive planning, you can take advantage of strategies that leave you better prepared when tax season arrives. Whether you’re an individual taxpayer wanting to stretch your refund or a small business owner hoping to improve cash flow, end-of-year tax planning matters. Let’s walk through practical tips, local considerations, and common mistakes to avoid—so you head into 2026 with confidence.

Why Year-End Tax Planning Matters

It’s tempting to put off thinking about taxes until April, but waiting can cost you. Year-end is when you still have the power to:

• Lower your taxable income with smart deductions.
• Shift income and expenses to better align with your financial picture.
• Maximize credits for retirement, education, or healthcare.
• Prepare your books so filing is faster and less stressful.

Think of December as the “fourth quarter” of your tax game plan. Every choice you make now—from charitable giving to equipment purchases—can change your tax outcome.

Year-End Tax Planning Tips for Individuals

1. Maximize Retirement Contributions

Contributions to employer-sponsored plans like 401(k)s or traditional IRAs reduce taxable income. For 2025, individuals can contribute up to $23,000 to a 401(k), with an additional $7,500 catch-up contribution if you’re 50 or older. IRAs allow $7,000 (or $8,000 with catch-up).

Pro tip: Venice, Florida, has a large retiree population. Even if you’re already drawing from retirement accounts, year-end is the time to review required minimum distributions (RMDs) to avoid costly penalties.

2. Charitable Giving Before December 31

Donations made by December 31 can be deducted on your 2025 return if you itemize. Qualifying contributions include cash, checks, and non-cash items like clothing or household goods. Don’t forget: you’ll need receipts for all charitable gifts.

Local angle: Consider donating to Sarasota County nonprofits or Venice-based charities. Supporting your community while lowering your tax bill is a win-win.

3. Review Medical and Education Expenses

Did you have significant healthcare costs this year? Some out-of-pocket medical expenses may be deductible if they exceed 7.5% of your adjusted gross income. Likewise, tuition and education-related expenses may qualify for tax credits like the Lifetime Learning Credit.

4. Adjust Withholding or Estimated Payments

If you owed a large amount last year—or got an unusually big refund—now’s the time to review your withholding or estimated payments. Adjustments in December can prevent surprises at filing time.

Year-End Tax Planning Tips for Small Businesses

Accelerate Expenses and Defer Income

One of the simplest strategies: move income and expenses strategically. For example, delay sending invoices until January, while paying outstanding bills or stocking up on supplies in December. This reduces 2025 taxable income and defers more income to 2026.

Take Advantage of Section 179 Deductions

If your business purchased equipment, vehicles, or technology, Section 179 allows you to deduct the full cost in the year it’s placed in service (up to limits). This is especially useful for Venice-area small businesses like construction firms, medical practices, or retail shops.

Bonus Depreciation Opportunities

Bonus depreciation is phasing out in coming years, but it still allows for accelerated deductions on qualified purchases. If you’re considering major equipment, December might be the best time to buy.

Clean Up Your Bookkeeping

Accurate books are the backbone of good tax strategy. Use year-end to reconcile accounts, categorize expenses, and prepare clean records for your CPA. Business owners in Sarasota County often juggle multiple revenue streams—clean bookkeeping ensures nothing slips through the cracks.

Review Employee Bonuses and Payroll

Planning year-end bonuses? Timing matters. Bonuses paid in December count toward 2025 payroll taxes, while January bonuses push the liability into the new year. Coordinate with your CPA to decide which timing benefits your business most.

Local Advantage: Why Work With a Venice CPA

Online tax software may handle basic returns, but individuals and businesses in Venice face unique considerations:

• Seasonal residents and retirees: Many have income from multiple states, pensions, or retirement accounts. Coordinating distributions and minimizing taxes requires local expertise.
• Small businesses and entrepreneurs: Sarasota County has a thriving small-business community. From real estate to tourism, industry-specific deductions and credits make a difference.
• Changing tax laws: Each year brings updates to credits, deductions, and depreciation rules. A local CPA ensures you’re not missing out.

Working with a Venice CPA means you’re not just filing taxes—you’re building a strategy that fits your financial situation and local context.

Common Mistakes to Avoid in Year-End Tax Planning

Even the best intentions can lead to costly errors. Here are frequent pitfalls we see:

• Forgetting deadlines: Donations, contributions, and certain purchases must happen by December 31.
• Overlooking RMDs: Retirees who skip required distributions face steep penalties.
• Mixing personal and business expenses: This complicates bookkeeping and can trigger IRS scrutiny.
• Failing to document charitable gifts: No receipt, no deduction.
• Waiting too long: By January, many opportunities are gone.

Avoiding these missteps is as important as maximizing deductions.

A Year-End Tax Planning Checklist

To keep things simple, here’s a quick list to review before the year closes:

• Contribute to retirement accounts (401(k), IRA).
• Take required minimum distributions (if applicable).
• Make charitable donations and keep receipts.
• Pay deductible expenses before December 31.
• Review estimated tax payments and withholdings.
• Reconcile business books and financial statements.
• Consider Section 179 or bonus depreciation for new purchases.
• Schedule a consultation with your CPA for personalized strategies.

Start the New Year on Solid Ground

Tax planning may not be as exciting as holiday festivities, but it’s one of the smartest gifts you can give yourself and your business. With proactive steps—like maximizing retirement contributions, supporting local charities, and leveraging deductions—you can reduce your tax bill and set yourself up for a smoother filing season.

At Peacock, Ellison & French CPAs, we help Venice individuals and businesses turn year-end strategies into real-world savings. Whether you’re wrapping up your first year as a small business owner or managing retirement income, we’ll guide you through every detail. Don’t wait until April—reach out today and start 2026 with confidence.