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2025 Year-End Tax Moves to Preserve Your Wealth
Before closing your books for 2025, take these tax-smart moves to reduce liability: deductions, Roth conversions, loss harvesting, and more.
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Author: Rate My Tax Accountant
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Published: July 4, 2025
As the calendar year winds down, there are several strategic tax moves you can make to minimize liabilities before filing for 2025:
- Max out tax-advantaged accounts — Contribute the maximum to your 401(k), IRA, or HSA (if eligible). These reduce taxable income now while you still have time.
- Consider Roth conversions — Converting traditional IRA assets to Roth lets future growth and withdrawals be tax-free, though you’ll pay taxes now.
- Engage in tax-loss harvesting — If you hold investments in taxable accounts that are underwater, you can sell them to offset capital gains (and up to $3,000 of ordinary income).
- Use new deductions (tips, overtime, car loan interest) — The 2025 tax code permits new deductions under the One Big Beautiful Bill Act, including deductions for qualified tips, overtime compensation, and car loan interest (subject to limits).
- Maximize credits & itemize (if beneficial) — Evaluate whether itemizing yields more benefit, especially in light of new deductions and credits.
- Prepare for regulatory changes — Stay aware of inflation adjustments, changes in filing thresholds, and evolving state-level rules.
Closing tip: Start early. Use year-end to lock in strategies (rather than scrambling in April). Always consult your tax advisor to tailor moves to your personal situation.
***Disclaimer: This article is for informational purposes and is not meant to be financial or legal advice***