By Takudzwa Nyandoro
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November 19, 2025
Why Early Tax Prep Matters for Small Businesses Tax season can feel overwhelming for small business owners, but being fully prepared saves time, stress, and money. Whether you’re a sole proprietor, LLC, or small corporation, early preparation helps you: Identify every possible legal deduction. Choose the best methods for reporting income and expenses. Understand new 2025 tax law changes affecting your business. Explore strategies to reduce future tax liability. At Twin Oaks Bookkeeping, we help NH businesses navigate tax prep efficiently so you can focus on growing your business. Key Tax Updates for 2025 1. Deduction for Tips and Overtime Qualified cash tips: up to $25,000 deductible, phases out above certain income levels. Qualified overtime pay up to $12,500 deductible for individuals, $25,000 for joint filers. These deductions apply to both itemizers and standard deduction filers and can reduce your taxable income significantly. 2. Vehicle Loan Interest Deduction Deduct up to $10,000 interest for loans on new personal-use vehicles under 14,000 lbs purchased after 2024. Applies to both standard and itemized deductions. 3. Expanded SALT Deduction State and local tax deduction limit increased to $40,000 (from $10,000). Phases out for high-income filers. 4. Retirement Catch-Up Contributions Individuals aged 60–63 can now contribute more to qualified plans, including 401(k)s and SIMPLE plans. Maximizes retirement savings while reducing taxable income. 5. Business Asset Deductions Section 179 Expensing: Deduct the full cost of qualifying assets (machinery, equipment, vehicles) up to $2.5M. Bonus Depreciation: 100% write-off for most qualifying assets in the year placed in service. These provisions encourage smart business investments while saving on taxes. 6. Other Important 2025 Tax Credits Child Tax Credi t: Up to $2,200 per qualifying child. Adoption Credit : Up to $17,280 refundable. Energy-efficient home & vehicle credits: Applies if your business or you installed qualifying systems or purchased electric vehicles. How to Get Organized for Tax Prep Proper record keeping is the foundation of stress-free tax filing. Here’s how Twin Oaks advises NH business owners: Start Early : Create a safe storage space for receipts, statements, and invoices. Separate Income and Expenses: Use categories like payroll, equipment, office expenses, charitable donations, etc. Track Investments and Sales: Maintain purchase dates, costs, and sales prices for all assets. Document Special Transactions: Include crypto, foreign accounts, and inherited property. Keep Employee Info Ready: W-2s, 1099s, mileage logs, and benefits statements. Pro Tip : Review last year’s return to catch anything you might have missed. Why Work with Twin Oaks Bookkeeping Expertise in small business tax preparation in NH. Tailored guidance for maximizing deductions and credits. Hands-on support for year-end bookkeeping and tax planning. Helps you reduce stress, avoid errors, and save money. With Twin Oaks Bookkeeping, tax season doesn’t have to be stressful. We guide NH businesses step by step, so you stay compliant, confident, and prepared for growth. Next Steps : Schedule Your Consultation Don’t wait until April! Get organized early and take advantage of 2025 tax opportunities. 📞 Call us today at 603-444-3363