November is here, and that means we have 60 days to make smart decisions that could significantly impact your tax bill. I’ve been helping business owners with year-end planning for over 30 years, and I want to share what really makes a difference.
The good news? You still have plenty of time. The key is starting now rather than waiting until December when things get hectic.
Retirement Contributions
One of the simplest ways to reduce your tax bill is maximizing your retirement contributions. For 2025, you can put $23,500 into your 401(k), or $31,000 if you’re 50 or older. If you have a SEP-IRA for your business, you might be able to contribute up to $70,000.
Take a moment this week to check how much you’ve contributed so far. Even adding a few thousand more can make a real difference in your tax situation and your future security.
Equipment and Section 179s
If you’ve been thinking about upgrading equipment, now is the time to seriously consider it. Section 179 allows you to deduct the full purchase price of qualifying equipment in the year you buy it, up to $1,220,000 for 2025.
Remember though, the equipment needs to be delivered and in use by December 31. With holiday shipping delays, I always recommend ordering by December 15 at the latest. New computers, vehicles for the business, or that piece of equipment you’ve been needing all qualify.
Timing Your Expenses
Sometimes the simplest strategies work best. Look at expenses you’ll have in January and consider whether prepaying them in December makes sense. This might include:
- January rent or lease payments
- Insurance premiums
- Professional memberships and subscriptions
- Inventory or supplies you’ll need anyway
Just be mindful of your cash flow. Saving on taxes is great, but not if it creates a cash crunch in January.
Your Business Structure
This is a good time to think about whether your current business structure still serves you well. Tax laws have changed over the past few years, and your business has likely evolved too. The LLC or sole proprietorship that made sense when you started might not be the most tax-efficient structure anymore.
Getting Your Books Current
I know bookkeeping isn’t anyone’s favorite task. But having clean, current books is essential for identifying tax-saving opportunities. If you’re behind (and many businesses are at this point in the year), now is the time to catch up.
Missing receipts, uncategorized transactions, and incomplete records all translate to potentially missed deductions. We offer catch-up bookkeeping services if you need help, but however you do it, please don’t wait until December.
Special Considerations for Montana and Wyoming
For our Montana clients, remember to look into the Montana Endowment Tax Credit and review your Business Equipment Tax situation.
Wyoming business owners, while we benefit from no state income tax, this makes federal tax planning even more important. Every federal deduction matters more when it’s your only opportunity for tax savings.
Your Next Steps
I know this list might feel overwhelming. You don’t have to do everything at once. Pick two or three items that apply to your situation and tackle those first. Progress is better than perfection.
If you’d like help creating a personalized year-end tax strategy, we’re here for you. We can review your specific situation and identify which strategies will benefit you most.
Call our office at ((406) 609-4567.
You’ve worked hard all year. These next 60 days are your opportunity to keep more of what you’ve earned.
In Abundance,
Sue Thompson