Your Guides to Year-End Tax Planning for Businesses & Individuals

The 2025 tax landscape is undergoing one of its most significant transformations in years, driven by sweeping new legislation. For private companies and individuals, these changes present both novel challenges and unprecedented opportunities to enhance cash flow, minimize tax liability, and drive growth. Proactive year-end planning is no longer just a best practice—it’s essential for success.

Grimbleby Coleman’s Tax team has compiled everything into a Year-End Tax Planning Guide for Private Companies and Individuals, providing the actionable insights you need to navigate this new environment. Read on to learn key developments and strategic planning opportunities.

Tax Planning for Businesses

Click the button to read the Full Business Planning Guide from our Tax Partner, BDO.

• Maximizing Deductions & Expensing: Capitalize on the permanent restoration of 100% bonus depreciation for most business property, the immediate expensing of domestic research and experimentation (R&E) costs, and a more favorable interest expense limitation under Section 163(j).
• Powerful Business & Investment Incentives: Explore now-permanent programs like the New Markets Tax Credit (NMTC) and the Qualified Opportunity Zone (QOZ) program. Additionally, enhanced benefits for Qualified Small Business Stock (QSBS) create new opportunities for tax-free returns.
• Navigating Pass-Through & Partnership Complexity: Benefit from the now-permanent 20% Qualified Business Income (QBI) deduction and understand crucial updates to partnership reporting, self-employment tax rules for limited partners, and the Corporate Alternative Minimum Tax (CAMT) as it applies to partnership interests.
• Adapting to a New Energy Credit Landscape: Strategize around accelerated phaseouts and new restrictions for key energy credits (Sections 45Y, 48E), while identifying opportunities in the evolving tax equity and credit transfer markets.
• International & State Tax Strategy: Re-evaluate your international tax posture with significant changes to Net CFC Tested Income (formerly GILTI) and Foreign-Derived Deduction-Eligible Income (FDDEI). Proactively manage the complexities of state tax conformity with this new federal legislation.
• Compensation & Benefits Planning: Prepare, as an employer, for new  reporting requirements for tips and overtime and leverage permanent or expanded credits for paid family and medical leave, on-site childcare, and student loan debt payments.

Tax Planning for Individuals

Click the button to read the Full Individual Planning Guide from our Tax Partner, BDO.

Major Changes from the One Big Beautiful Bill

The OBBBA has introduced several new provisions that create significant planning opportunities:

• Increased SALT Deduction: The state and local tax (SALT) deduction cap has been temporarily increased to $40,000 for 2025, phasing down to $10,000 for taxpayers with income over $500,000.
• New Individual Deductions: For tax years 2025 through 2028, several new deductions are available, including:
  • Up to $25,000 in tip income for eligible workers
  • The “half” portion of “time-and-a-half” overtime pay, up to $12,500 ($25,000 for joint filers)
  • A new deduction for seniors (age 65+) of up to $6,000 ($12,000 for married couples)
  • Up to $10,000 in interest paid on a qualifying new car loan
• Charitable Contribution Adjustments: The OBBBA introduced a new 0.5% of AGI floor for charitable deductions and a new 35% maximum benefit for all itemized deductions.
• Expanded 529 Plans: These plans now offer greater flexibility, with increased withdrawal limits for K-12 expenses and an expanded list of qualified costs.

Key Year-End Planning Considerations

Income & Deduction Timing: Strategically timing income and deductions between 2025 and 2026 can yield significant tax savings. Consider accelerating deductions (like mortgage interest or charitable gifts) into 2025 and deferring income into 2026, especially if you anticipate being in a similar or lower tax bracket next year.

Capital Gains: Long-term capital gains rates remain favorable. Plan by:

• Harvesting capital losses to offset 2025 gains,
• Structuring sales to defer gains into future years,
• Donating appreciated property to charity to potentially eliminate capital gains tax.

Retirement Planning: Contribution limits for retirement accounts have increased for 2025 and 2026.

• 401(k) Contributions: The 2025 employee contribution limit is $23,500, with an additional $7,500 catch-up for those age 50 and over.
• “Super Catch-Up”: A new provision allows participants aged 60-63 to make an increased catch-up contribution of $11,250 (vs. the $7,500) in 2025.
• RMDs: The age for beginning Required Minimum Distributions (RMDs) is now 73.

Estate and Gift Tax Planning: The unified estate and gift tax exemption has increased significantly to $13.99 million per person for 2025 and is projected to be $15 million in 2026. The annual gift tax exclusion is $19,000 for 2025. This presents a valuable opportunity to transfer wealth and reduce potential estate tax liability.

Business Loss Limitations: The limitation on deducting excess business losses (EBL) has been made permanent by the OBBBA. The 2025 limit is $313,000 for single filers and $626,000 for joint filers.

Let’s Plan Your Strategy

The tax landscape is complex and subject to change. The strategies outlined above are a starting point. A personalized plan is essential to navigate these updates and optimize your financial position.

Grimbleby Coleman’s Tax team is ready to assist with navigating tax changes and strategies. Contact our team or call us at (209) 527-4220 to schedule your year-end tax planning consultation. We’ll tailor a tax strategy that aligns with your business or individual goals and positions you and your business for success in 2026 and beyond!