Year-End Tax Planning for Small Businesses in New Jersey: 2025 Guide

Admin • August 13, 2025

As 2025 comes to a close, small business owners in New Jersey have a crucial opportunity to reduce their tax liability, maximize deductions, and prepare for a stronger financial year ahead. Whether you run a small shop in Cherry Hill, a growing startup in Marlton, or a professional services firm in Moorestown, effective year-end tax planning in New Jersey can make a substantial difference in your bottom line.


The end of the year isn’t just about wrapping up operations and setting goals for 2026. It’s the time to take proactive steps that can legally minimize your taxes while keeping you compliant with both federal and New Jersey state tax laws.


In this in-depth guide, Dan Reganata CPA MBA PFS will walk you through IRS-approved, NJ-specific strategies that will help you close 2025 on a high note — and start 2026 with confidence.

Person Calculating Taxes With Calculator and Notebook

Why Year-End Tax Planning Matters for Small Businesses in New Jersey

Year-end tax planning isn’t just for big corporations with in-house accountants. For small business owners, it’s an essential tool to:


  • Lower taxable income through strategic deductions
  • Defer income to reduce current-year tax bills
  • Prepare accurate records for tax filing
  • Avoid penalties and IRS scrutiny
  • Take advantage of New Jersey–specific credits and benefits


The best part? Many of these strategies are simple to implement when done before December 31 — especially with guidance from Dan Reganata CPA MBA PFS.

1. Review Your Business Income and Expenses

Before you can make smart tax moves, you need a clear picture of your financials.


Steps to take now:


  • Run your year-to-date profit and loss statement to see where your revenue and expenses stand.
  • Look for unusual income spikes that could push you into a higher tax bracket.
  • Identify missed deductions, such as business mileage, software subscriptions, or marketing costs.


Pro Tip from Dan Reganata CPA MBA PFS: If your business operates on a cash-basis accounting method, you may benefit from prepaying certain expenses — like rent, utilities, or insurance — before year-end. This reduces your taxable income for the current year.

2. Maximize Your Available Deductions

Small businesses in New Jersey can take advantage of a variety of deductions. Common ones include:


  • Office supplies and equipment (computers, furniture, printers)
  • Business travel and lodging
  • Marketing and advertising costs
  • Professional services (accountants, lawyers, consultants)
  • Employee benefits and training programs
  • Vehicle expenses used for business purposes


Documentation is key: Keep digital or paper records for every expense you claim. In an IRS or NJ state audit, this can save you significant stress and penalties.

3. Consider Section 179 and Bonus Depreciation 

If you’ve been delaying the purchase of new equipment, technology, or vehicles, Section 179 may allow you to deduct the entire purchase price in 2025 rather than spreading it out over several years.


In addition, bonus depreciation lets you deduct a percentage of the cost of eligible assets in the year they are placed into service.


Dan Reganata CPA MBA PFS Insight: This is a particularly powerful strategy for New Jersey businesses investing in technology or operational upgrades before year-end.

4. Review Payroll and Employee Benefits 

Payroll is more than just paying wages — it’s an opportunity for tax planning.


Before year-end, you should:


  • Consider paying out employee bonuses in December to take advantage of current-year deductions.
  • Review retirement contributions for both employees and yourself.
  • Look into Small Business Health Care Tax Credits if you provide health insurance. 

5. Plan for Estimated Taxes and Withholding

If your income increased significantly in 2025, your quarterly estimated payments may no longer cover your tax liability.


Why this matters:


  • Underpaying can result in IRS penalties and interest.
  • New Jersey also imposes penalties for underpayment of estimated taxes.


Dan Reganata CPA MBA PFS recommends meeting with a CPA in early December to calculate your final estimated tax payment for 2025.

6. Take Advantage of New Jersey–Specific Tax Credits

New Jersey offers tax incentives for small businesses that invest in growth, hiring, and community development. Examples include:


  • Small Business Improvement Grant Program
  • NJEDA Small Business Lease Assistance Program
  • Energy efficiency tax credits for qualifying upgrades


These programs can change annually, so working with a local CPA like Dan Reganata CPA MBA PFS ensures you stay informed.

7. Manage Your Inventory

If your business carries inventory, your year-end count can affect your taxable income.


Strategies to consider:


  • Write off obsolete or unsellable inventory.
  • Take advantage of year-end sales or discounts to restock essential items.

8. Retirement Planning for Small Business Owners

One of the most powerful ways to reduce taxable income is to contribute to a qualified retirement plan. Options include:


  • SEP IRA
  • SIMPLE IRA
  • Solo 401(k)
  • Traditional 401(k)


These plans offer high contribution limits and tax-deferred growth. Dan Reganata CPA MBA PFS helps small business owners set up and manage these plans effectively.

9. Review Your Business Structure

Your tax liability is influenced by your business structure. Whether you’re a sole proprietor, LLC, S corporation, or C corporation, your situation may benefit from a change in entity type.


A tax professional can help you determine whether restructuring before year-end could result in significant savings.

10. Plan Charitable Contributions

If charitable giving is part of your business values, donating before December 31 can help reduce taxable income.


What qualifies:


  • Cash donations to qualified organizations
  • Donations of goods or inventory
  • Sponsorships for local events or nonprofits
Overhead View of Notepad, Pen, Keys, Money, Wallet, Calculator, Coffee and Name Tag

Year-End Tax Planning Checklist for 2025

  1. Review income and expenses
  2. Maximize deductions
  3. Use Section 179 and bonus depreciation
  4. Review payroll and benefits
  5. Check estimated taxes
  6. Claim NJ-specific credits
  7. Manage inventory
  8. Maximize retirement contributions
  9. Evaluate business structure
  10. Make charitable contributions

Why Choose Dan Reganata CPA MBA PFS for Year-End Tax Planning

With years of experience serving Cherry Hill, Marlton, Moorestown, Mount Laurel, and surrounding New Jersey areas, Dan Reganata CPA MBA PFS offers:


  • Personalized tax strategies tailored to your business
  • In-depth knowledge of NJ-specific credits and incentives
  • Compliance with both IRS and state regulations
  • Ongoing support beyond tax season

Contact Dan Reganata CPA MBA PFS Today

Address: 1892 Greentree Road Suite 2, Cherry Hill, NJ 08003

Phone: (856) 874-1892

Email: danr@dsrjcpa.com

Business Hours: Mon - Fri: 9:00AM - 5:00PM | Sat & Sun: Closed


We’ll help you create a personalized 2025 year-end tax strategy that ensures compliance, maximizes savings, and sets you up for a successful year ahead. Call now to schedule your consultation — spots fill quickly before year-end!

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