Year-End Tax Strategies for Business Owners
InsightsBy Troy Noor, CFP®, CFA®
Many of our clients own businesses, and we make it our mission to help them transform those businesses into reliable generators of wealth. Your tax strategy can make a difference in your company’s long-term trajectory, and the end of the year is a great time to evaluate your tax plan. In this article, we’ll explore year-end tax strategies for business owners.
Maximize Retirement Contributions
This is one of the most important year-end tax strategies. If you have a tax-advantaged retirement plan, it can help lower the taxes you owe. It also helps you build your retirement savings.
The amount you may contribute depends on your plan. Many small business owners have a SEP (Simplified Employee Pension) IRA. If you have one, you may contribute the lesser of these two amounts for 2025:
- 25% of your compensation
- $70,000
If you are nearing retirement age, this is one of the year-end tax strategies that’s especially important to consider. Some retirement plans allow you to make catch-up contributions once you turn 50. SEP IRAs do not, but solo 401(k)s do.
Accelerate or Defer Income
In some industries, you may be able to accelerate or defer your income to help you save on taxes. Both can be useful year-end tax strategies. For example, if you’re concerned about being in a higher tax bracket, you might wait to invoice recent clients until January of 2026.
There are some situations where accelerating your income can be beneficial as well. For example, if your business is likely to earn significantly more in 2026 and you want to stay in your current tax bracket, you might bill clients sooner rather than later (or even offer a discount for paying early).
Accelerate Expenses
Accelerating expenses is another way you might be able to save money on your taxes. If you make tax-deductible business purchases before the end of the year, you can claim them on your 2025 taxes.
Take Advantage of the Qualified Business Income (QBI) Deduction
As a business owner, you know that any kind of tax savings can be helpful. If your business is a pass-through entity like a sole proprietorship or S corporation, you may be able to claim the qualified business income (QBI) deduction. If you qualify, this is an effective year-end tax strategy to employ.
The QBI deduction allows you to deduct up to 20% of your company’s net profit from your personal taxes. This is a greater deduction than most of the other year-end tax strategies on the list.
Review Depreciation & Capital Expenditures
Claiming depreciation and capital expenditures are two year-end tax strategies that can significantly reduce what you owe. Capital expenditures are major business investments that can’t be immediately deducted. Instead, you can claim depreciation on your taxes each year.
There are multiple ways to calculate depreciation. We can help you understand your options and choose the method that’s most beneficial to you.
Revisit Estimated Tax Payments
The IRS requires business owners to make quarterly estimated tax payments throughout the year. Although the last quarterly deadline for 2025 is January 15, 2026, it’s still wise to look over the estimated tax payments you’ve made thus far. If you don’t pay enough by each quarterly deadline, you could owe a penalty even if you’re owed a tax refund.
Trying to Choose Your Year-End Tax Strategies?
Navigating year-end tax strategies can be a challenge, and no two business owners have the same tax needs. The suggestions above create a starting point, but the best way to sharpen your tax strategy is to meet with us and discuss your options.
At Boulevard Wealth Management, we strive to make your financial vision a reality. If you have questions about our firm or how we can help, contact us online today. To schedule a meeting, call (763) 244-1191 or email troy@blvdwealth.com.
Frequently Asked Questions
1. What are the most important year-end tax strategies for business owners?
Key year-end tax strategies include maximizing contributions to tax-advantaged retirement plans, accelerating or deferring income, and accelerating deductible expenses. Reviewing these areas can help lower your taxable income and build long-term wealth.
2. How can the QBI deduction be part of my year-end tax strategies?
For pass-through businesses like sole proprietorships or S corporations, the QBI deduction allows you to deduct up to 20% of your company’s net profit on your personal taxes. Incorporating this deduction into your year-end tax strategies can provide significant tax savings.
3. Why should I review depreciation, capital expenditures, and estimated tax payments as part of year-end tax strategies?
Reviewing depreciation and capital expenditures can reduce taxable income by spreading deductions over multiple years, while checking estimated tax payments ensures you’ve met IRS requirements and helps avoid penalties. Both are crucial elements of effective year-end tax strategies for business owners.
About Troy
Troy Noor, CFP®, CFA® is the Executive Director and Director of Portfolio Management at Boulevard Wealth Management, a financial services firm in Twin Cities, Minnesota, dedicated to addressing client goals through a team-based, fiduciary approach. With over 28 years of experience in the financial industry, Troy specializes in helping executives with equity compensation and business owners maximize their wealth and minimize taxes. His work centers on creating customized investment strategies, optimizing portfolio risk, and designing financial plans that empower clients to pursue financial independence. Guided by his passion for stewardship, Troy strives to help clients align their financial resources with their long-term goals while fostering positive impacts on families and communities for generations. His approach combines technical proficiency—leveraging tools like tax harvesting and mean-variance optimization—with a faith-driven commitment to acting in his clients’ best interests.
Troy earned his Bachelor of Applied Science in International Business and holds the distinguished CERTIFIED FINANCIAL PLANNER® and Chartered Financial Analyst® designations. Beyond his professional roles, he has served as a Board Member for the Eden Prairie Chamber of Commerce, currently serves on the board of Ambassadors for Business, and leads a men’s Bible study group, reflecting his dedication to community and faith. Outside the office, Troy enjoys traveling, fishing, and gardening. He lives by the principle of stewardship, aspiring to hear, “Well done, my good and faithful servant” at the end of his journey. To learn more about Troy, connect with him on LinkedIn.