Aberdeen Small Business Owners: Don’t Let Q4 Tax Opportunities Slip Away—Strategic Planning Can Save You Thousands

As 2024 draws to a close, Aberdeen small business owners face a critical window of opportunity for tax planning that could significantly impact their bottom line. The fourth quarter deadline for estimated tax payments is January 15, 2025, making this the perfect time to implement strategic tax planning measures that can reduce your overall tax liability.

Understanding Q4 Tax Planning Urgency

As a business owner, paying taxes is your duty, but the amount you owe should never be a surprise. It’s essential to understand how business taxes work and estimate the amount you need to pay each quarter or year to ensure you have the appropriate amount. For Aberdeen businesses, this becomes particularly crucial as we approach the year-end deadline.

Missing a quarterly payment can result in unexpected penalties and fees when filing returns in 2025, making fourth-quarter planning essential for maintaining cash flow and avoiding costly surprises.

Key Tax Strategies for Aberdeen Small Businesses

Maximize Equipment and Asset Purchases

For qualified property placed in service in tax years beginning in 2024, the maximum amount that may be expensed under Section 179 is $1,220,000 — up $60,000 from 2023. This presents a significant opportunity for Aberdeen businesses looking to invest in equipment before year-end.

The bonus depreciation rate is 60% in 2024 but drops to 40% in 2025, making immediate equipment purchases particularly attractive for tax planning purposes. Property acquired and placed in service in the last days of the tax year, rather than at the beginning of the following year, can result in a full expensing deduction for the earlier year.

Retirement Plan Contributions

Aberdeen business owners should consider establishing or maximizing contributions to retirement plans. For self-employed individuals, a simplified employee pension (SEP) IRA can be funded with 20% of self-employment earnings with a maximum of $69,000 for 2024. There is no year-end deadline, and you can establish the pension up to the extended due date of your income tax returns.

If you set up a new retirement plan for your employees, such as a 401(k), SEP IRA, or SIMPLE IRA, you may be eligible to deduct up to 50% of your start-up expenses for up to three years. The maximum deduction is $5,000; you must have fewer than 101 employees to qualify.

Strategic Income and Expense Timing

Planning to accelerate income from 2026 into 2024 or 2025, where possible, could make sense for some pass-through businesses. If the provision does expire, you’ll get a bigger QBI deduction now and avoid paying taxes on the revenue (without the deduction) in 2026.

Aberdeen businesses should also consider accelerating deductible expenses into 2024. Consider whether you should make any planned purchases before year-end so that you can deduct those expenses on your 2023 tax return.

Critical Q4 Deadlines for Aberdeen Businesses

Aberdeen small business owners must stay vigilant about several key deadlines:

• January 15, 2025: Final 2024 quarterly estimated tax payment due
• Local Aberdeen quarterly tax returns due by January 31st for the fourth quarter (October, November, December)
• December 31, 2024: Final deadline for most tax-advantaged purchases and deductions

Avoiding Penalties and Maximizing Savings

One way to avoid penalties is by following the “safe harbor” rule, which means you’re meeting that IRS pay-as-you-go requirement. To satisfy the rule, you must pay at least 90% of your 2024 tax liability or 100% of your 2023 taxes, whichever is smaller.

For higher-income Aberdeen business owners, the threshold increases to 110% if your 2023 adjusted gross income was $150,000 or higher, making careful planning even more critical.

The Importance of Professional Guidance

As business taxes can be complicated, we recommend working with an experienced tax professional to help you plan. Aberdeen business owners who partner with a qualified accountant aberdeen can ensure they’re taking advantage of all available tax strategies while remaining compliant with both federal and local tax requirements.

They can help you determine how your business plan interacts with tax laws, provide valuable insights and suggest timely strategies to help you lighten your tax load.

Record Keeping and Organization

It’s key that the receipts and important documentation (cash flow, income statement, etc.) you’ve collected throughout the year are neatly organized for tax season. Aberdeen businesses should prioritize getting their financial records in order now, rather than scrambling during the busy tax season.

A thorough review of your financial statements helps ensure accuracy and confirms that numbers are up to date as you approach the end of the year. The extra effort now also helps prevent errors that can slow down your tax return preparation process or lead to mistakes and IRS penalties.

Looking Ahead to 2025

Many of the TCJA’s tax benefits are slated to vanish at the end of 2025. While the reduced 21% corporate tax rate stays in place, the QBI deduction goes away unless legislators extend it. This makes current tax planning even more valuable for Aberdeen businesses.

The fourth quarter of 2024 represents a crucial opportunity for Aberdeen small business owners to implement tax strategies that can result in significant savings. By taking action now—whether through equipment purchases, retirement plan contributions, or strategic expense timing—businesses can optimize their tax position and start 2025 on stronger financial footing. Don’t let these valuable opportunities pass by; the January 15th deadline will arrive quickly, and proactive planning today can pay dividends for years to come.