Don’t Miss the 2025 QBI Optimization Deadline — Here’s How to Capture Thousands in Tax Savings Before Year-End

As 2025 draws to a close, many business owners — especially roofing contractors and tradespeople — are realizing they’ve been leaving $20,000 to $150,000 in potential deductions on the table every year.

The culprit? Not optimizing their Qualified Business Income (QBI) deduction before December 31.

What Is the QBI Deduction?

The Qualified Business Income (QBI) deduction, established under the Tax Cuts and Jobs Act (TCJA), allows eligible business owners to deduct up to 20% of their qualified business income from their taxable income.

It’s one of the most powerful ways to reduce your tax burden — but only if your salary and profit structure are set up correctly before year-end.

A Simple Example: How One Salary Adjustment Can Save You $12,000+

Let’s look at a real-world example.

A roofing company with $500,000 in profit and $75,000 in owner wages qualifies for a $37,500 QBI deduction.

But if that same owner adjusts their salary to $143,000, the QBI deduction jumps to $70,000 — translating to an additional $12,025 in tax savings.

That’s money that could go toward new equipment, hiring more crew, or simply improving your bottom line — all from a smart year-end move.

Why Timing Is Everything

Here’s the catch:
You can’t make these adjustments retroactively when filing taxes in March.

Once December 31st passes, the opportunity to optimize your QBI for 2025 is gone. That’s why now — not tax season — is the time to review your salary, entity structure, and overall tax plan.

According to the IRS QBI deduction guidance, you must have the proper wage and income structure in place before the end of the tax year to claim the full deduction.

How to Check If You’re Missing Out

You can do a quick check by reviewing Form 8995-A (Qualified Business Income Deduction) from your tax return.
Compare:

• Line 2: Total Qualified Business Income
  
  
• Line 15: Actual Deduction
  
  

If Line 15 is significantly less than 20% of Line 2 — for example, $37,500 instead of $70,000 — you’re likely missing out on thousands in deductions.

What You Should Do Next

Before the year ends, schedule a QBI Optimization Consultation with our team at Freedom From Accounting.
We’ll help you:

✅ Run a custom analysis of your 2025 projections
✅ Model your optimal wage and profit structure
✅ Process any needed adjustments before December 31

Don’t wait until tax season to find out you’ve overpaid. The QBI deadline is approaching fast, and even one smart adjustment can make a huge impact on your tax bill.

Ready to Capture Every Dollar You Deserve?

Schedule your free QBI Strategy Call today: https://tidycal.com/ffa/45-minutediscoverycall

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