As 2025 winds down, it's a critical time for small business owners to capitalize on significant tax benefits introduced by the "One Big Beautiful Bill Act" (OBBBA). You can claim benefits for expenses and purchases made now—even those dating back to January 20, 2025—so don't wait until tax season in 2026 to act.
Last month Tom Sullivan, Senior VP for Small Business Policy at the U.S. Chamber presented at the annual Southeast Entrepreneurship and Economic Development (SEED) Symposium here in Cape Girardeau. He offered some great opportunities for businesses and maybe some last-minute ideas to help close some customers.
1. Accelerate Investment, Maximize Deductions. A primary year-end strategy is to make qualifying capital purchases to reduce your taxable income. The OBBBA permanently restored 100% Bonus Depreciation for qualified new and used assets placed in service after January 19, 2025. This allows you to immediately deduct the full cost of equipment, machinery, and software.
2. Optimize Income and Savings. For pass-through entities (sole proprietors, partners, and S corporation shareholders), the 20% Qualified Business Income (QBI) Deduction is now permanent. You should work with a tax professional to determine your eligibility and claim the maximum amount.
3. Strategic Timing and Employee Perks. If you operate as a cash-basis taxpayer, consider accelerating deductible expenses (like office supplies or paying future bills) into 2025 and deferring income into 2026 to potentially lower this year's tax liability.
The time to act is now. Consult your tax advisor to develop a personalized year-end plan and ensure you capture every opportunity available under the new law. And don’t’ forget, if you are going to make some last-minute investments, be sure to shop local at the end of the year!
