As 2025 winds down, Q4 is more than just closing the books — it’s your chance to maximize tax savings, invest in your team, and set up for a strong start in 2026. The Big Beautiful Bill (BBB) introduced several tax changes that affect equipment purchases, payroll, charitable giving, and long-term planning.

Here are six key areas business owners should focus on before December 31:

1. Review cash flow and expenses

Review your 2025 numbers. The BBB restored 100% bonus depreciation, meaning qualifying equipment or software placed in service this year can generally be written off in full. Even smaller purchases made before 12/31 could create meaningful tax savings.

Action step: Run a year-end projection with your accountant to decide whether accelerating expenses or deferring income benefits you.

2. Invest in your business

Need technology, machinery, or other upgrades? The BBB raised Section 179 expensing limits, making it easier to deduct larger purchases instead of spreading costs over years. This improves cash flow and positions your business for growth in 2026.

Action step: Identify qualifying purchases and confirm eligibility with your advisor.

3. Take care of your team

Retention matters, and year-end is a great time for bonuses, training, or benefits. The BBB introduced temporary deductions for employee tips and qualified overtime pay (subject to caps and phase-outs). Employers must report properly so both the business and employees can take full advantage.

Action step: Ensure payroll systems are updated to handle new rules.

4. Maximize owner tax breaks

Two big wins for owners: the 20% Qualified Business Income (QBI) deduction is now permanent, and the SALT deduction cap increased to $40,000 for 2025. If accelerating state and local tax payments improves your position, Q4 may be the time to act.

Action step: Work with your advisor to run QBI and SALT scenarios for 2025.

5. Make year-end charitable plans

Giving back can also be a smart tax strategy. The BBB permanently extended the 60% of AGI limit for cash contributions to public charities, but starting in 2026, new rules apply — including a 0.5% AGI floor for itemized deductions and limits for non-itemizers. That makes 2025 a particularly favorable year for larger gifts.

Action step: Consider bunching donations or using donor-advised funds to lock in higher deductions before rules change.

6. Plan for growth and transition

Finally, use Q4 to look at the big picture. The BBB raised estate and gift tax exemptions, creating more flexibility for succession planning. Reviewing ownership structures, buy-sell agreements, and transition strategies ensures you stay ahead of tax law changes.

Action step: Schedule a planning session with your CPA and estate advisor.

Q4 is about more than wrapping up — it’s about making smart moves that set you up for success. With the BBB changes, there are fresh opportunities to accelerate deductions, reduce liability, and plan strategically for 2026. Talk with your advisor now to make the most of this year’s rules.