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2024 is coming to a close, and Jacksonville businesses have a unique opportunity to optimize their finances and prepare for the upcoming year. Businesses can better their chances of significant savings and position themselves in a stronger financial position in 2025 by implementing strategic tax planning at the end of the fiscal year. Brock CPA is a full-service accounting firm in Jacksonville, Florida specializing in supporting local business growth and financial optimization. On our blog this month, we’re going to talk through practical tax strategies that Jacksonville businesses can implement at the end of the year to set themselves up for success in 2025. Let’s go!

Maximizing Deductions

Make sure you’re taking advantage of all of the available deductions, like those for business-related travel, meals, and entertainment. These deductions often add up and account for more than you might anticipate. It’s always a good idea to review your expenses and see if there are any additional deductions you can make to benefit your business come 2025.

Utilizing Tax Credits

Likewise, look for any available tax credits that your business might qualify for, such as energy efficiency credits, or credits for hiring certain employees. Taking advantage of the credits and deductions available to you could greatly impact your tax planning in 2025.

Deferring Income

If possible, try deferring some of that end-of-the-year income until 2025. This can help reduce your taxable income for 2024, and could potentially lower your tax liability.

Accelerating Expenses

Prepaying for expenses like rent, utilities, and supplies before the end of the year can help Jacksonville businesses take advantage of deductions in the current tax year. This is a helpful workaround for businesses that need a bit more wiggle room when it comes to their deductions.

Reviewing Inventory

Review your current inventory to see if there is any excess stock that you can sell at the end of the year at a discount. Not only does this help reduce your taxable income, it also frees up storage space, a win-win!

Investing in Equipment

Psst, we have two words: depreciation deductions. Purchasing new equipment or technology for your Jacksonville business at the end of the year instead of at the beginning can provide tax benefits through depreciation deductions, while also improving your business operations.

Contributing to Retirement Plans

Contributing to retirement plans like 401(k)s or IRAs can reduce your taxable business income, especially if you maximize your contributions before the year ends.

Consulting with a Tax Professional

Our best piece of advice for Jacksonville businesses looking to optimize their finances ahead of the new year? Team up with a dedicated tax professional in Jacksonville who knows local businesses, like Brock CPA. We provide small businesses in Jacksonville the tax support they need to make the best and most strategic decisions, ultimately leading to business longevity and long-term growth. We’ll provide personalized advice based on your business’s unique situation, identify additional tax strategies, and ensure your business is in compliance with all tax laws.

Are you ready to set your Jacksonville business up for financial success and a stress-free tax season this 2025? Call Brock CPA at 904-330-0268 or visit our contact page to drop us a line!

Photo credit: Alexander Grey via Unsplash

You might’ve seen the recent news, our own Governor DeSantis signed a new omnibus tax bill (House Bill 7073) on May 7, 2024 that will have a great impact on Floridians across the state, providing significant tax relief. The bill presents $1.07 billion in tax relief for Florida families, bringing the total savings to $1.5 billion for fiscal year 24- 25. House Bill 7073 also notably adopts the current Internal Revenue Code (IRC), finally in alignment with federal tax regulations. As Jacksonville’s leading certified public accounting firm, Brock CPA is excited to see how these changes can positively impact our clients in the near future. In this blog, we’re going to discuss some of the most noteworthy changes in the omnibus tax bill, and how it affects you.

Automatic Due Date Extension

The new omnibus tax bill enacts automatic due date extensions for corporate income tax and sales tax in the event of federally declared states of emergencies or disasters. These due date extensions will provide significant relief for businesses during times of turbulent weather climate, something as Floridians we are all too familiar with. It’s a convenient measure considering the fiscal impacts the COVID-19 pandemic had on businesses across the country just 4 years ago.  The measure applies to taxpayers during any taxable year that a disaster or emergency takes place, and is automatically extended to 15 days for corporate income tax, and 10 days for sales tax.

Unique Abilities Tax Credit

Florida businesses employing individuals with a disability, as defined by statute, could be eligible for a tax credit of up to $1,000 per employee. The credit equals one dollar for each hour the employee works during the taxable year and is capped at 1,000 hours. The tax credit is applicable to individuals who have been employed for at least 6 months, and applies to taxable years beginning on January 1, 2024. The max amount of tax credits to be granted is $5 million over the next three years. The program encourages Florida companies to make diverse hires, which allows our communities to remain tolerant and welcoming of all unique individuals.

Sales Tax Provisions

Within House Bill 7073, there are several sales tax holidays that should have Florida taxpayers rejoice. Parents and care providers can enjoy tax-free purchases for back-to-school items from July 29 – August 11, 2024, while recreational items and certain admissions are tax-free during “Freedom Month” which takes place July 1 – 31, 2024. Perhaps the one that applies to every Floridian across the states in some way or another, the “Disaster Preparedness Sales Tax Holiday” was from June 1 – 14, 2024 and takes place again from August 24 – September 6, 2024, providing – you guessed it – tax-free purchases of disaster preparedness items. From September 1 – 7, 2024, skilled workers can enjoy purchasing their required tools at a tax-free rate as well.

These are just a few of our favorite key points within the new omnibus tax bill, there are a plethora of excellent reforms outlined in the complete bill that we are excited to see in effect for our community and the families and businesses we work with. Brock CPA has been proudly serving Jacksonville, Florida since opening our doors in 2016. With a focus on small businesses, we’re dedicated to providing professional and reliable advice and services. See how we can help your family or small business and contact us to get started today.