The 2025 Tax Checklist: Don't Leave Cash Flow on the Table

The year 2025 brings a monumental shift in the rules for deducting capital expenses—a change that could fundamentally rewrite your balance sheet. The phase-down that complicated tax planning in 2023 and 2024 is over. Thanks to new legislation, the biggest, fastest tax breaks on business investments are back, more powerful and more permanent than before.

Are you planning to purchase new equipment, expand your facilities, or invest in next-generation software this year? If so, you need to understand two key provisions right now: 100% Bonus Depreciation and the Expanded Section 179 Expensing Limit.

Don't Miss Out—Book Your 2025 Strategy Session Today!

Why Your 2025 Depreciation Strategy Must Change

For years, the future of these powerful tax deductions was uncertain. Now, for the first time in a long time, businesses have incredible clarity and a massive incentive to invest.

100% Bonus Depreciation is Back and Permanent

In 2024, the bonus depreciation allowance was scheduled to be 60%, a significant reduction from previous years. For qualified assets acquired and placed in service after January 19, 2025, that rate has been permanently restored to 100%!

• The Benefit: This allows you to deduct the full cost of eligible new and used assets (like machinery, vehicles, and equipment) in the year they are placed in service, providing an immediate, powerful reduction in your taxable income.
• The Urgency: The acquisition and in-service dates are critical. An experienced Chico accountant can ensure your purchases are timed and documented correctly to lock in this full deduction.

Section 179 Expensing Doubles Its Impact

Section 179 is the ideal deduction for small to mid-sized businesses, and the 2025 limits have been substantially increased.

• The Change: The maximum amount you can deduct immediately has been raised to $2.5 million (up from approximately $1.25 million in 2024).
• The Threshold: The phase-out threshold—where the deduction begins to reduce—is now $4 million (up from about $3.13 million), making it accessible to a broader range of growing businesses.
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For Cannabis CPA clients, manufacturing companies, and other capital-intensive industries, correctly applying both Section 179 and 100% Bonus Depreciation is the difference between a high tax bill and significantly improved cash flow.

Specialized Expertise is Required to Get This Right

These rules are powerful, but they are also complex. Applying them incorrectly can lead to severe penalties or, worse, missed opportunities. For example, did you know that for some Cannabis clients, navigating Tax Code 280E requires a highly specialized approach to these capital deductions?

At TreeStar Solutions, we don't just process your return; we use this new legislation to create a proactive small business tax planning strategy that maximizes every deduction, particularly for our specialized industries like Agriculture, Manufacturing, and Cannabis.

Don't wait until filing season to discover you missed out on millions in deductions. Our expertise ensures your capital investments are structured to deliver the maximum 2025 business tax changes benefit