by Dave Horwedel, EA and CEO of Torchlight Tax
TAKE ACTION NOW TO LOWER YOUR 2025 TAX BILL AND MAKE TAX FILINGS LESS PAINFUL NEXT YEAR!
Many taxpayers did their 2024 taxes at the last minute or late. Their records were a mess, and they’re certain they paid too much tax.
They swear they’re going to change their ways, do it early, and be properly organized next year.
They swear they’re going to make sure they get all those good deductions they miss out on every year.
Which is what they said LAST YEAR!
How do you get out of this annual rat trap?
My first recommendation is: TAKE ACTION NOW! Get organized now and consult with a tax professional.
Procrastination got you into this. To break this habit, pick up the phone and dial!
Contact Torchlight Tax for a free consultation at 877-758-7797 or email info@torchlighttax.com.
Are taxes confusing? Of course they are—especially if you’re in this situation. To get rid of the confusion, find someone to help you and learn!
To lessen your confusion on taxes and to make sure you don’t miss out on useful tax tips, subscribe to the Torchlight Tax YouTube channel.
You Can’t Change 2024, But You CAN Change 2025
Tax season is not the best time to get organized and find out how to save money on taxes. Let’s face it—in January 2026, in most cases, you cannot change your 2025 taxes.
Yes, a tax expert can find every deductible expense you had in 2024, but they generally can’t add new ones. The facts on which your 2024 tax liability was based are unalterable. Through expert bookkeeping, accounting, and tax preparation, you can minimize your tax liability based on these facts—but you can’t change those facts in 2025 for 2024.
There are a few exceptions. If you’re renting out real estate, a Cost Segregation Study and Accelerated Depreciation might yield huge savings.
A late election to treat an LLC or C Corporation as an S Corporation could also result in big savings. Donations to a pension or IRA may still be an option.
However, if you can’t change your 2024 taxes in 2025, you can change your 2025 taxes during 2025.
Suppose your business profits are running way up in 2025. Your 2025 taxes are projected to be high.
Can you increase your business expenses in 2025? YES!
Here are some options:
- Pay 11 months of rent in advance.
- Pay 11 months of marketing in advance.
- Pay for a new website.
- Buy business equipment or furniture.
If you’re a cash-basis business, you can pay for these by cash, check, credit card, or debit card before the end of the year—and deduct the full amount.
IS THIS A GOOD IDEA? YES—if you have reason to believe you’ll generate more income by doing so.
There are many examples of this.
This works because there’s still time left in 2025 to take actions that could lower your 2025 tax bill.
It’s also an excellent time to get your tax questions answered, as neither you nor we are stressed out about filing taxes before the deadline.
It’s also a good time to take steps with bookkeeping and accounting that will make your 2025 tax filing smooth. These are especially important for any sort of business.
It’s also a great time to review other strategies to protect your assets or save tax dollars—such as properly setting up entities like partnerships, LLCs, S and C corporations, and trusts.
Asset Protection, Entities, And Truth Vs. Fiction
Asset protection is often overlooked, and if you have significant assets or a profitable business, that can be a big mistake.
Even a struggling business or a person with modest assets still deserves protection.
Asset protection doesn’t seem like a big deal—until you’re hit with a lawsuit or some other disaster. Then it may be too late.
Imagine the frustration of a lawyer who thinks he can bleed money out of your business—only to discover the business has no assets he can reach because we helped you set up an asset protection framework.
There are different degrees of asset protection. It’s not one-size-fits-all. I like to do tax planning and asset protection with my clients at the same time.
It’s also a good idea to plan how to increase your income and build your assets.
The goal isn’t just to pay less tax. That’s easy—make no income. Go broke!
You want to increase your effective income and net worth, while protecting your assets and saving tax dollars.
Sometimes, switching from one business entity to another can significantly impact how much tax you owe. Some examples of entities include sole proprietorships, partnerships, LLCs, S corporations, C corporations, and trusts.
These entities exist in different states and even offshore.
They also play a key role in protecting your assets.
You’ve heard all kinds of wild stories:
- “Taxes are illegal and go against the Constitution.”
- “You just need to opt out of the system, and the IRS can’t touch you.”
- “Create a trust. Put all your income into it. Pay all your living expenses out of it. There’s no profit—so you pay no tax.”
- “The rich pay no taxes because they do these things.”
- “You can make all the money you want in a foreign trust and legally pay no taxes.”
These ideas are BALDERDASH—but not 100%.
It’s true that trusts and LLCs can shield assets.
Subchapter S corporations can lower your taxes.
Tax returns can be amended to generate refunds.
Different entities can have tax benefits.
Notice the word “CAN” Not always.
It is possible to legally minimize your taxes. It is possible to use LLCs, trusts, and different types of corporations to protect your assets.
BUT IT MUST BE DONE RIGHT.
That’s why I recommend a consultation with a trusted professional. Putting in basic actions now can also save you a lot of time, money, and stress during tax season.
Contact Torchlight Tax for a free consultation at 877-758-7797 or email info@torchlighttax.com.
For more insights on tax-saving strategies, visit our website at torchlighttax.com, or explore educational resources and explainer videos on the Torchlight Tax YouTube channel.
