A Year-End Tax Planning Playbook for Central Texas Individuals and Business Owners
As 2025 winds down, this season offers a valuable opportunity for CEOs, entrepreneurs, and families across Central Texas to pause and take a thoughtful look at their financial strategies. Year-end tax planning is more than a checklist item. It’s a chance to strengthen cash flow, reduce tax liabilities, and lay the groundwork for a more profitable and financial sound start to 2026.
With major updates from the One Big Beautiful Bill Act (OBBBA), shifting tariff regulations, and new possibilities for deductions and credits, now is the time to take action. If you’re managing a growing business or planning for retirement, buying a new home or paying for a child’s college tuition, a few smart decisions today can make a meaningful difference tomorrow.
OBBBA: A New Era of Tax Strategy
The OBBBA has introduced sweeping reforms that reshape how businesses and high-income earners approach tax planning. Here are a few highlights worth considering:
- 100% Bonus Depreciation: Businesses can now deduct the full cost of qualified property immediately, including vehicles, machinery, and technology upgrades. This can significantly improve cash flow.
- Expanded IRC Limits: Doubling the deduction cap opens the door to more aggressive investments in equipment and software.
- SALT Cap Raised to $40,000: This change offers greater flexibility for managing state and local tax deductions.
- Enhanced QBI Deductions: Pass-through entities such as LLCs, S-corps, and partnerships benefit from broader eligibility and higher thresholds.
- Expanded Standard Deduction: The standard deduction has increased again, allowing more income to be shielded from taxation whether you file as single, married, or head of household.
- Permanent Tax Brackets: The temporary tax rates from the 2017 Tax Cuts and Jobs Act (TCJA) are now permanent. This means the top rate remains at 37%, and lower brackets are slightly expanded, helping more income stay in lower tax tiers.
- New Bonus Deductions: Seniors age 65 and older can claim a new $6,000 bonus deduction. While those who earn income in tips can deduct up to $25,000 of tip income. And overtime pay deductions are available up to $12,500 for single filers and $25,000 for joint filers.The OBBBA introduced many changes as you can see that may significantly benefit families and individuals. A trusted CPA can absolutely help you understand and apply them to your situation. For business owners, think of this season as a financial tune-up. Running a few ‘what if” scenarios now such as accelerating deductions, deferring income, or reevaluating your business structure under the new law could reveal savings you hadn’t anticipated. A deeper look with your CPA and tax advisor can lead to stronger outcomes in the year ahead
Smart, Simple Moves to Boost Your Year-End Strategy
2025 tax changes can offer new ways to reduce taxable income, especially for working families, retirees, and small business owners. Yet, even with all the recent changes, some of the most effective tax strategies remain perennial tax strategies:
- Prepay Expenses: Paying rent, bonuses, or vendor contracts before year-end can help secure deductions for 2025 and improve cash flow.
- Defer Income: If it aligns with your financial goals, consider delaying invoicing or revenue recognition until January to reduce this year’s taxable income.
- Maximize Retirement Contributions: Contributions to plans like 401(k)s or SEP IRAs are typically tax-deductible and grow tax-deferred.
- Organize Your Financial Records: Clean, accurate books help capture every possible deduction and credit. They also allow your tax advisor to run projections and model strategies quickly, giving you clearer visibility into cash flow and better insight for budgeting and growth planning.
Why This Moment Matters
By combining these practical steps with the new opportunities under the new tax codes, you can help your business and your household build a more resilient and tax-efficient foundation for 2026. This is about more than saving money, it will help create confidence and momentum for the future.
Trusted Expertise, Decades Deep
At Hemingway & Buchanan, we’ve spent decades helping Central Texas businesses and families navigate the complexities of tax planning with care and precision. Our team brings deep expertise and a personal approach to every conversation, helping you make informed decisions that protect your bottom line and support your long-term goals. Let’s make this year-end count. We’re here to help you finish strong and step into the new year with tax planning strategies that will benefit you through the year. Visit us at HNBCPA.com to learn more and to schedule an appointment at our new Brodie Lane offices or for a phone discussion.