As we move through 2025, tax planning remains one of the most essential services CPAs provide for individuals and businesses.
With an evolving regulatory environment and major tax provisions from the 2017 Tax Cuts and Jobs Act (TCJA) set to expire at the end of this year, it’s more important than ever for Certified Public Accountants to be proactive, strategic, and informed. This comprehensive guide explores key tax planning considerations CPAs should be aware of, effective strategies to implement, and how to stay ahead of upcoming changes.
Why Tax Planning Matters in 2025
Tax planning is not just about reducing tax liability, it’s about aligning financial goals with regulatory requirements, preparing for potential changes in tax law, and helping clients build long-term wealth. With 2025 poised to be a pivotal year due to the sunset of TCJA provisions, CPAs must take action now to prepare clients for what could be a very different tax environment in 2026.
Key Tax Planning Strategies for CPAs in 2025
Reassess Business Entity Structures
With potential changes to corporate tax rates looming, now is the time to evaluate whether clients are operating under the most advantageous business entity structure. CPAs should help clients compare the tax implications of operating as a C corporation, S corporation, LLC, or partnership. An entity restructuring could result in significant tax savings depending on the client’s income level, long-term goals, and industry.
Maximize Deductions and Available Credits
One of the most effective ways to reduce taxable income is by leveraging all available deductions and tax credits. Encourage business clients to take full advantage of the Qualified Business Income (QBI) deduction, review depreciation schedules for capital expenditures, and explore industry-specific tax credits. For high-net-worth individuals, deductions tied to charitable contributions, mortgage interest, and education expenses should be evaluated thoroughly.
Additionally, some states offer pass-through entity tax elections that allow certain businesses to bypass the federal State and Local Tax (SALT) deduction cap—this is a powerful tool that can deliver significant tax savings for qualifying clients.
Optimize Retirement Contributions
Encourage clients to maximize contributions to tax-advantaged retirement accounts. Contributions to traditional IRAs, 401(k)s, and defined benefit plans reduce taxable income now, while Roth IRAs offer future tax-free growth. Backdoor Roth IRA conversions continue to be a valuable strategy for high-income earners. Business clients should also be reminded of the tax credits available for starting a new retirement plan for employees, which can lower their tax liability while providing a meaningful benefit to their team.
Prepare for the Estate and Gift Tax Changes
The United States is currently experiencing the beginning of the largest wealth transfer in history, with trillions of dollars expected to change hands in the coming decades. However, many Americans are still underprepared, with a significant portion lacking even a basic will.
The federal estate and gift tax exemption, which is historically high as of 2025, is scheduled to be reduced in 2026 unless new legislation is passed. CPAs should urge clients to act now—whether through gifting strategies, establishing trusts, or reviewing their estate documents—to take advantage of the current exemption levels.
Address Inflation Adjustments
Many tax thresholds, credits, and deductions are now indexed to inflation. CPAs should verify that clients are using the updated figures when making financial plans. This includes standard deductions, retirement contribution limits, and the thresholds for tax bracket calculations. Keeping clients informed of these changes can help avoid under- or over-contributing to accounts and lead to smarter financial decisions.
The Importance of Continuing Education for CPAs
Tax professionals operate in a constantly changing environment. To remain effective, CPAs must commit to lifelong learning and stay up to date with legislative updates, IRS guidance, and best practices. One of the most effective ways to do this is by attending CPE courses online, especially those tailored to the latest developments in tax planning.
Live webinars and self-paced online CPE courses can help CPAs expand their knowledge in critical areas such as estate tax changes, business tax strategies, international taxation, and retirement planning. They also serve as a great opportunity to gain real-time insights from industry experts and apply those insights directly to client scenarios. For the best CPE for CPAs online, check out CPE Inc., as they have a wide range of course options and a variety of formats.
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