Key 2025 Tax Updates for Businesses

As 2025 begins, now’s the time to close out your books and prepare for filing. The IRS has expanded Section 179 expensing limits and returned 100% Bonus depreciation – great news if you invested in new equipment or software before year-end.

Business owners should also review quarterly estimated tax payments, and mileage logs to ensure all records are complete. If you offer retirement benefits, note that 401(k) contribution limits have increased, which may require payroll adjustments in early 2026. Partnerships and S corporations should confirm that K-1 allocations and shareholder distributions align with year-end financials to prevent delays in filing. Now is also a good time to review your records for 1099 filing requirements for those you paid >$600 in 2025.

This quarter is also a good opportunity to review your entity structure and expense strategy heading into 2026. Whether you need a final year-end reconciliation or want to discuss planning for next year’s tax efficiency, we’re here to help make sure your filings – and your business – start the year strong.