The purpose of this letter is to reveal how you can get the IRS to owe you money.
Sounds wild, right?
But it’s true, you can legally put yourself in a position where you keep more cash and the IRS takes less.
No shady loopholes. No risky tricks.
Just smart, IRS-approved strategies that business owners often overlook.
And while you might not literally get a check in the mail (although yes… in some cases, that can happen), you will feel the difference when you reduce your tax bill and keep more money in your pocket.
Below are six powerful tax deduction strategies you can use before the year ends clear, simple, and designed to help you save more in 2025.
Prepay Your Expenses Using the IRS Safe Harbor Rule
The IRS doesn’t hand out gifts often but this rule is definitely one of them.
If you’re a cash-basis taxpayer, the IRS allows you to prepay up to 12 months of qualifying expenses and deduct them immediately. No pushback. No adjustments.
This includes:
- Rent for offices, vehicles, or equipment
- Insurance premiums
- Lease payments
- Business or malpractice insurance
- And other eligible expenses
Key rule: your prepayment can’t stretch beyond 12 months.
So expenses for 2026 can be prepaid in 2025 but not into 2027.
Example:
You pay $3,000/month in rent and decide to send your landlord a $36,000 check on December 31, 2025 to cover all of 2026.
Here’s what happens:
- You deduct the full $36,000 in 2025
- Your landlord reports the income in 2026
You get a huge deduction this year.
Your landlord gets peace of mind for the next year. Everybody wins.
Delay Billing Your Clients Until After December 31
If you’re on cash basis, this is one of the easiest ways to legally reduce your 2025 taxable income:
👉 Don’t send out bills until January 2026.
Clients don’t pay until they’re billed—so delaying the billing simply moves the income into the next tax year.
Example:
Jake, a dentist, usually bills weekly.
In December, he sends no invoices.
He waits until the first week of January.
What happens?
- All December income gets taxed in 2026
- His 2025 tax bill drops significantly
This strategy is completely legal and widely used by small business owners.
Buy Equipment Before December 31
Great news from the One Big Beautiful Bill Act (OBBBA):
✨ 100% bonus depreciation is back
✨ Section 179 limits are increased
✨ Most equipment now qualifies for immediate deduction
You can deduct 100% of the cost of new or used:
- Machinery
- Computers
- Furniture
- Office equipment
- And certain vehicles
As long as you buy AND place the item in service by December 31, 2025, you get the full deduction this year.
Use Your Credit Card for Last-Minute Business Purchases
Here’s a rule many business owners don’t know:
👉 For Schedule C filers (sole proprietors), the day you charge your credit card is the day you get the deduction.
You don’t need to pay off the card first.
So if you need:
- Supplies
- Software
- Equipment
- Inventory
- Business tools
Charging them before midnight on December 31 gives you the deduction for 2025.
If you’re a corporation, the same rule applies but only if the corporate credit card was used.
If you used your personal card, your corporation must reimburse you in 2025 to get the deduction.
Stop Thinking You’re Taking “Too Many” Deductions
Many new business owners hesitate to claim all their eligible deductions because they’re afraid of “taking too much.”
But here’s the truth:
👉 A tax loss is not a bad thing.
👉 A tax loss can turn into cash in future years.
This loss is called a Net Operating Loss (NOL) and can be carried forward to reduce taxes in future profitable years.
So yes, document everything.
And claim everything you’re entitled to.
Tax law rewards businesses that keep good records.
Make Improvements to Your Commercial Space (QIP)
If you’ve made improvements to the interior of a non-residential building (like an office or retail space), you may qualify for a huge deduction called Qualified Improvement Property (QIP).
Here’s the big benefit:
✨ QIP is NOT depreciated over 39 years
✨ QIP is depreciated over 15 years
✨ QIP is eligible for 100% bonus depreciation
So instead of spreading the cost over decades, you can deduct the entire amount this year iif the improvements are placed in service by December 31, 2025.
These aren’t loopholes.
These aren’t shortcuts.
These are real, IRS-approved strategies that business owners use every single year to save thousands sometimes tens of thousands in taxes.
The earlier you plan, the more you save.
If you want help implementing any of these strategies or making sure you’re documenting things properly, Basc Expertise is here to guide you every step of the way.