🔍 7 Tax Strategies Every Business Owner and Real Estate Investor Should Be Using in 2025

Tyler N
Jun 25
3 min read

Published by Yadvisory.com – June 2025

Are you leaving money on the table? With the right tax strategies, business owners and real estate investors can dramatically reduce their tax liability — legally and efficiently.

At Y Advisory, we specialize in proactive tax planning that goes beyond compliance. Whether you're scaling a business, building a portfolio, or navigating a sale, here are 7 advanced tax strategies that can help you save big in 2025.

1. Bonus Depreciation & Cost Segregation Studies

Target keywords: bonus depreciation 2025, cost segregation tax savings

The potential revival of 100% bonus depreciation makes cost segregation studies more powerful than ever. If you’ve purchased, built, or renovated a property in the last few years, you may qualify for accelerated depreciation that can slash your tax bill by hundreds of thousands — even retroactively.

2. Qualified Business Income (QBI) Optimization

Target keywords: QBI deduction 2025, small business tax savings

If you're an LLC, S-Corp, or sole proprietor, you may be eligible for a 20% deduction on qualified income under Section 199A. But this deduction isn’t automatic — income thresholds, wages, and entity structure all play a role. Structuring your income correctly can unlock major savings.

3. Real Estate Professional Status (REPS)

Target keywords: real estate professional tax status, passive loss rules real estate

Investing in real estate? Electing Real Estate Professional Status can let you use passive losses (like from bonus depreciation) to offset active income, like business profits or a spouse’s W-2. For many of our high-income clients, REPS is the key to major tax sheltering.

4. Entity Restructuring

Target keywords: best tax entity for business, LLC vs S-Corp taxes

The wrong business structure could be costing you thousands. Whether you’re launching a new venture or scaling your operations, we’ll help you choose the optimal legal entity for tax efficiency, liability protection, and growth — and revisit it as your business evolves.

5. Section 179 Deduction

Target keywords: Section 179 deduction 2025, tax write-offs for equipment

Purchasing equipment, vehicles, or office furniture? Section 179 lets you deduct up to $1,220,000 (2025 limit) in the year the asset is placed in service. Combine this with bonus depreciation for a one-two punch of tax savings on capital expenditures.

6. Retirement Plan Optimization

Target keywords: tax savings through retirement plans, solo 401k contribution limits

Max out tax-advantaged retirement contributions through a Solo 401(k), SEP IRA, or Cash Balance Plan — especially if you’re self-employed or earning significant pass-through income. These plans can reduce taxable income by six figures annually.

7. Capital Gains & Exit Planning

Target keywords: capital gains tax strategies, business sale tax planning

Selling a business or property? Planning early — sometimes years in advance — can reduce or defer capital gains taxes using tools like installment sales, opportunity zones, charitable trusts, or QSBS (Qualified Small Business Stock).

🔑 Bottom Line: Strategy Beats Reaction

Most business owners and investors only think about taxes once a year — by then, it’s too late to plan.

At Y Advisory, we work with clients year-round to make sure they’re using every legal strategy available to maximize after-tax income, reinvest faster, and build lasting wealth.