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2025 Year End Planning

  • Linda Romano
  • Nov 6
  • 2 min read

December 31, 2025 is rapidly approaching and we would like to bring to your attention some 2025 year-end tax items that you may want to review.  The following are some important items to consider:

 

Personal Income Taxes

 

  1. Investment Loss Positions and Appreciated Assets: Consider the sale of Investment Loss Positions and/or Investment Gain Positions by 12/31/25.

  2. Maximize your Retirement Account (Pension) Contributions: Those who participate in a 401K plan can contribute up to $23,500 in 2025 ($31,000 if 50 or older by 12/31/25)

    1. Effective 1/1/25 The catch-up contribution for eligible participants who will attain ages 60, 61, 62 or 63 by 12/31/25 are increased to $11,250 in 2025. At age 64, it returns to the regular catch-up contribution         

  3. Maximize Deductions: Consider donating your car and receiving a deduction for the charities selling price of the donated vehicle.  Be sure to obtain form 1098C, which must be attached to your return.

    1. Consider maximizing charitable donations in 2025 as in 2026, the deduction will be reduced by 0.5% of your adjusted gross income.  Other restrictions apply.

  4. Standard deduction: up to $31,500 for joint filers, $15,750 for single filers and $23,625 for head of household filers.

  5. Real Estate Taxes and State and Local Income Tax deduction: Capped at

$40,000. Restrictions apply.

  1. Miscellaneous deductions such as employee business expenses are eliminated. All are deductible in New York State.

  2. Home mortgage deduction received on home acquisition originating after 12/15/17 is capped at $750,000 for joint returns and $375,000 for single returns.

  3. 529 plans can now be used for elementary and secondary schools with a maximum of $10,000, as well as paying up to 10,000 for student loans.

  4. You can gift up to $19,000 or $38,000 for a married couple to each person to reduce your estate.

 

Business Income Taxes

 

  1. Additional Write Off of Up to $2,500,000, of new and used equipment and Other Fixed Assets limited to $4,000,000 of capital purchases.  Certain SUV’s qualify for the deduction of $31,300 plus the balance is eligible for bonus depreciation.

  2. Enhanced Defined Benefit Plans: A Fully Insured Defined Benefit Plan will allow business owners tax deductible pension contributions well above those limits you are familiar with. The use of guaranteed annuities and/or whole life insurance products may generate huge contributions of over $200,000. Employee costs can also be designed at a minimum.  Consider opening new plans by December 31, 2025.  If interested, please contact us for details.

  3. Partnerships, Sole proprietors, LLC’s or S Corporations may be able to deduct 23% of their qualified income. Restrictions apply.

                                                                                                          

Please call us at (914) 741-5555 with any questions. We also welcome any referrals with questions of their own.

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©2021 by Rosanna Bell, PLLC. Certified Public Accountant. 

The information presented on this website is for general use and while we have made every effort to provide accurate information, it is important to recognize that individual and/or business situations are never the same.  Therefore information should be relied upon only after consulting with a professional tax advisor. 

The content of this website is limited to the matters specifically addressed herein and is not intended to address other potential tax consequences or the potential application of tax penalties to this or any other matter. 

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