If you want to lower your 2025 tax bill, avoid these four common mistakes. Each one has a simple fix you can apply today—no jargon. Need help? Book Personal Tax Preparation or Business Tax Preparation.
Key 2025 numbers at a glance
- Business mileage: 70¢/mile
- Home office (simplified): $5/sq ft up to 300 sq ft (max $1,500)
- 401(k) employee deferral limit: $23,500 (higher catch-up $11,250 for ages 60–63)
- IRA contribution limit: $7,000 ($8,000 age 50+)
- De minimis safe harbor: expense items ≤ $2,500 (if no AFS)
We’ll confirm which rules apply to your situation.
Mistake 1: Waiting until filing time to “optimize”
Big savings usually happen before you file—by capturing mileage, choosing the right home-office method, and making the right retirement contributions before deadlines.
Fix: Set a simple quarterly routine: (1) update mileage/app logs, (2) reconcile books, (3) review retirement contributions (401(k)/IRA), (4) estimate taxes. If you’re busy, we can set this up inside our Accounting & Bookkeeping package.
Mistake 2: Using the wrong deduction method
Many filers leave money on the table by choosing the wrong method: mileage vs. actual vehicle expenses, or simplified vs. actual home-office. The best choice depends on your usage and records.
- Mileage: 70¢/mile for 2025—easy if you keep a log.
- Home office simplified: $5/sq ft up to 300 sq ft—great if you want less paperwork.
- Actual-expense methods: often better if costs are high and records are clean.
Fix: We’ll run both methods and use the larger, audit-safe deduction during your Personal Tax Preparation or Business Tax Preparation.
Mistake 3: Poor timing on equipment/software purchases
Deductions depend on when property is placed in service. Buying on Dec 31 but not placing in service until January may push the deduction to next year. Rules like Section 179 and bonus depreciation can help—but limits and eligibility apply.
Fix: Before year-end, review your pipeline and decide what to buy and when to place in service. We’ll map the best approach during Business Consulting.
Mistake 4: Mixing personal and business finances
Commingled accounts lead to missed deductions and sloppy records. It also weakens your position if the IRS asks for support.
Fix: Use dedicated business banking/credit cards and a simple monthly close. If you’re behind, our Accounting & Bookkeeping service will get you caught up and reconciled.
Want a quick, no-pressure review?
We’ll check your mileage/home-office method, retirement contributions, and year-end purchases—then give you a simple action list for 2025. Serving Zephyrhills • Wesley Chapel • Dade City • Tampa Bay & nationwide.
Last updated: August 25, 202
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