As 2025 winds down, now’s the perfect time to take a fresh look at your taxes. With new rules kicking in for every U.S. taxpayer, the last few months of the year are your chance to make smart moves that could lower your tax bill and set you up for a strong start to 2026.
Here are a few smart strategies to think about before year-end:
1. Revisit Your SALT Deduction Strategy
Big news: the state and local tax (SALT) deduction limit jumps from $10,000 to $40,000 in 2025. If you live in a high-tax state, that could mean serious savings on your federal taxes.
This might be a good time to see if itemizing your deductions makes more sense than taking the standard deduction. You can also try “bunching” your deductions.
For example, paying two years’ worth of property taxes or charitable donations in 2025 to maximize your write-offs.
2. Don’t Miss SALT Benefits for Business Owners
If you own a pass-through business (like an S corp, partnership, or LLC), you could benefit even more through your state’s pass-through entity tax (PTET).
This allows your business to pay state income taxes at the entity level and deduct them federally up to that higher $40,000 SALT cap. Just remember: PTET elections aren’t automatic, and every state has its own rules and deadlines.
3. Donate Appreciated Stock Instead of Cash
Thinking of giving to charity this season? Consider donating appreciated stock you’ve held for more than a year. You’ll avoid capital gains tax on the increase in value and still get a charitable deduction for the full market value.
Example: If you bought stock for $10,000 and it’s now worth $25,000, donating the stock directly means you can deduct the full $25,000 — while skipping tax on the $15,000 gain. It’s a simple way to give back and save on taxes.
4. Review Your Residency if You Own Homes in Multiple States
If you split time between two states, your tax residency can affect more than just your income taxes; it could also impact estate and inheritance taxes.
States are cracking down on residency claims, so it’s smart to review where you’ve spent most of your year and where your official ties (like driver’s license or voter registration) are based.
Need planning before the year ends? Contact Us! We’re here to walk you through your options and help you make the most of these changes before December 31.
