5 Year-End Tax Strategies Every Small Business Owner Should Know

Tax season doesn't have to be a scramble. For small business owners, the most effective tax planning happens before December 31 — not after. At Kamish & Associates, we work with Tampa Bay entrepreneurs year-round to identify opportunities that reduce liability and keep more money in your business.

Here are five strategies worth discussing with your CPA before year-end.

1. Accelerate Deductions and Defer Income

If you expect to be in the same or higher tax bracket next year, consider accelerating deductible expenses into the current year and deferring income to January.

• Prepay rent, subscriptions, or vendor invoices due in early next year
• Purchase and place equipment in service before December 31
• Delay sending invoices for work completed late in the year

"Timing is one of the most powerful — and underutilized — tools in tax planning."

2. Maximize Retirement Contributions

Contributions to SEP-IRAs, Solo 401(k)s, and SIMPLE IRAs are deductible and reduce your taxable income dollar-for-dollar. Florida small business owners have until the tax filing deadline (plus extensions) to fund certain plans.

• A SEP-IRA allows contributions up to 25% of compensation
• Solo 401(k)s offer both employee and employer contribution limits
• SIMPLE IRAs must be established earlier in the year

3. Review Your Entity Structure

Is your current entity still the right fit? Many sole proprietors and single-member LLCs miss significant savings by not electing S-Corp status once income exceeds a certain threshold. This is worth modeling with your CPA every year as income grows.

4. Take Advantage of Section 179 and Bonus Depreciation

If your business purchased equipment, vehicles, or technology this year, you may be able to deduct the full cost in year one rather than depreciating it over time.

• Section 179 allows immediate expensing up to set annual limits
• Bonus depreciation rules have been phasing down — act while rates remain favorable

5. Harvest Business Losses

If you hold investments or assets inside your business, review whether any have declined in value. Realizing losses before year-end can offset capital gains and reduce your overall tax burden.

Ready to Take the Next Step?

These strategies work best when planned early and executed with precision. Kamish & Associates serves small business owners across Tampa Bay, FL with proactive, year-round tax planning.

Contact us at admin@kamishcpa.com or call 813-560-1832 to schedule a year-end planning session before time runs out.