Year-End Tax Planning Moves to Make Before December 31st
Peacock & French CPAs
Oct 06, 2025
At Peacock, Ellison & French, CPAs, P.A., we offer personalized guidance that’s free from product sales or outside agendas. Our advice is built around your unique circumstances and long-term success.
Why Year-End Tax Planning Matters
Many tax-saving opportunities must be acted on before December 31. Missing these deadlines could mean paying more than necessary when tax season arrives. Year-end planning also gives you time to align your tax decisions with your broader financial goals without the last-minute stress.
Top Tax Moves for Individuals
- Contribute to Retirement Accounts
Make the most of contributions to traditional IRAs and 401(k)s, which can reduce your taxable income. If you are age 50 or older, take advantage of catch-up contributions. In some cases, converting funds to a Roth IRA could benefit your long-term strategy. Speak with your CPA to determine if this move aligns with your goals. - Harvest Investment Losses
Selling investments that have declined in value can help offset gains and reduce your taxable income. This strategy, known as tax-loss harvesting, also creates an opportunity to rebalance your portfolio for the year ahead. - Make Charitable Donations
If you itemize deductions, charitable giving is a great way to support causes you care about while potentially lowering your tax bill. Qualified Charitable Distributions (QCDs) from IRAs and donor-advised funds are tools worth exploring. Be sure to confirm that your total deductions exceed the standard deduction to qualify. - Use Up Flexible Spending Accounts (FSAs)
FSAs often operate on a “use it or lose it” basis. Check your plan rules and consider using remaining funds on eligible expenses before the deadline. - Review Withholding and Estimated Payments
If your income changed this year, it is wise to make sure your tax withholding and estimated payments are on track. Adjustments now could help avoid underpayment penalties when you file your return.
Year-End Planning Tips for Small Businesses
- 1. Time Income and Expenses Wisely
Depending on your accounting method, deferring income or accelerating expenses can impact your current-year tax liability. Review year-end invoices and anticipated spending with your accountant to identify potential savings. - Utilize Section 179 and Bonus Depreciation
Purchasing qualifying business assets, such as laptops, office furniture, or machinery, before year-end may qualify for full or partial deduction under Section 179 or bonus depreciation. This can make reinvesting in your business more cost-effective. - Review Payroll and Employee Benefits
Year-end is a good time to consider bonuses, employee retirement plan contributions, or fringe benefits. These steps not only reward your team but can also offer additional deductions if properly documented. - Clean Up Your Books
Ensure your records are accurate and up-to-date. Reconciling accounts now will simplify tax preparation and help identify outstanding issues or opportunities before filing season. - Evaluate Your Business Structure
Depending on your income level and future growth plans, it may be beneficial to reassess your entity structure. Changes such as moving from a sole proprietorship to an S-Corp could offer tax advantages. Always consult with your CPA before making structural changes to ensure suitability and compliance.
Why Choose Peacock, Ellison & French, CPAs, P.A.
With over 80 years of combined experience, our team is prepared to offer guidance that is specifically tailored to your needs. Because we do not sell financial products, our advice is truly objective. We are also happy to collaborate with your financial advisor, banker, or attorney to create a unified approach to your financial well-being.
Your Year-End Planning Checklist
For Individuals
- Max out retirement contributions
- Review portfolio for capital loss harvesting
- Make charitable donations
- Use up FSA funds
- Confirm withholding and estimated tax payments
For Businesses
- Evaluate income and expense timing
- Invest in qualifying equipment or software
- Finalize year-end bonuses or benefit contributions
- Reconcile books and financial records
- Review entity structure with your CPA
Let’s Plan Ahead Together
There is still time to make a meaningful impact on your tax situation this year. Our office is conveniently located at 1314 East Venice Ave, Suite C, Venice, Florida. Contact us to schedule a customized year-end planning session.