Last Call for Back-to-Business Tax Strategies
Last Call for Back-to-Business Tax Strategies August might signal the final stretch of summer, but it’s also a strategic window for business owners, gig workers, and freelancers to sharpen their tax and financial planning. As the slower pace of summer gives way to a busy fall, now is the time to get proactive with your deductions, estimated payments, and retirement contributions. Here are three mid-year tax moves that can set you up for smoother year-end planning—and meaningful savings. 1. Mid-Year Deduction Check If you’ve been heads-down running your business or juggling multiple income streams, it’s easy to overlook deductible expenses that can reduce your taxable income. Fortunately, the summer slowdown offers a chance to catch up. For the self-employed or small business owners, now is the time to review and document any eligible deductions. Did you upgrade your home office setup? Replace a business laptop? Drive for work-related purposes? The IRS allows a standard mileage deduction—$0.70 per mile in 2025—for qualified business travel [1]. These routine expenses can add up to big savings come tax time. Other commonly overlooked deductions include: Business software or subscriptions (e.g., Canva, QuickBooks, Zoom) Marketing and advertising costs Business meals (50% deductible if properly documented) Education and professional development expenses Take advantage of the remaining months to make any planned purchases before Q4 ends, and keep your receipts and records organized. Better documentation now means fewer headaches later. 2. Estimated Taxes Are Due September 15 If you earn non-W2 income—whether through freelance work, consulting, or running your own company—you’re likely responsible for making quarterly estimated tax payments. The third installment for 2025 is due on September 15, making August the perfect month to review your income and expenses with your Wedbush financial advisor. Underpaying estimated taxes can result in IRS penalties, even if you pay in full by the end of the year. To avoid this, you must pay either 100% of last year’s tax liability or 90% of this year’s expected liability, whichever is less [2]. If your income has increased this year, you may need to adjust your payments accordingly. The IRS provides Form 1040-ES to help calculate your estimated tax obligations, but working with your Wedbush financial professional ensures a more accurate and strategic plan. 3. Maximize Retirement Contributions Early Another smart mid-year move: review your retirement contributions, especially if you use self-employed plans like a SEP IRA, Solo 401(k), or SIMPLE IRA. Not only do these accounts offer meaningful tax-deferred growth, but they also provide significant opportunities to reduce taxable income. An SEP IRA allows contributions of up to 25% of compensation, capped at $70,000 for 2025 [3]. A Solo 401(k) offers both employee deferral and employer contribution options—making it ideal for high earners looking to maximize tax-advantaged savings. By contributing now, rather than waiting until year-end or the tax deadline, you can ease cash flow pressure and potentially grow your savings faster. Also, consider coordinating contributions with your estimated tax planning. Adjusting both can optimize your overall tax picture. Proactive Planning Pays Off The weeks before Q4 present a golden opportunity to tidy up your books, make smart deductions, and reduce your tax burden. Whether you’re running a growing business or managing a side hustle, small steps taken now can make a big difference later. Use this quieter month to sit down with your Wedbush Financial Advisor or tax professional and ensure your strategies are aligned. With proper planning, you’ll head into year-end confident, not scrambling. Sources: [1] IRS. “Standard Mileage Rates for 2025.” https://www.irs.gov/newsroom/irs-increases-the-standard-mileage-rate-for-business-use-in-2025-key-rate-increases-3-cents-to-70-cents-per-mile [2] IRS. “Estimated Taxes | Frequently Asked Questions.” https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes [3] IRS. https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions Disclosure Wedbush Securities does not provide tax or legal advice. Please consult your tax or legal advisor. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice. Third-party entities, companies, and organizations that may be referenced on this page are not affiliated with Wedbush Securities or any of its affiliates. Opinions mentioned are that of the third-party and not of Wedbush Securities, the financial adviser and/registered representative, or any of our affiliates. Investment products involve investment risks including potential loss and are not insured by any federal agency, are not deposits or obligations of, or guaranteed by any financial institution and may involve loss of value. Past performance is not a guarantee of future returns. Any implementation of recommendations or investment strategies may generate fees, expenses, charges or commissions, based on the products and services. Any organization, company, individual, or third-party entity that are referenced on this page are not affiliated with Wedbush or any of its affiliates. The content on this page might not necessarily reflect the expertise of the investment professional and should be used for informational purposes only; the information provided on this page is not intended to be used as a recommendation of any kind, as it does not constitute an offer or advice. Fixed income securities are subject to increased loss of principal during periods of rising interest rates and are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by contacting your Wedbush Financial Advisor and/or Registered
Mid-Year Market Pulse: What to Watch in the Second Half of 2025
Mid-Year Market Pulse: What to Watch in the Second Half of 2025 As we move into the second half of 2025, it’s a prime opportunity for investors to pause, reflect, and recalibrate. The first half of the year has been shaped by continued economic resilience, evolving Federal Reserve policy, and the initial impacts of post-election legislation. Staying proactive in this environment requires keeping a close eye on key trends that could shape the markets in the months ahead. Federal Reserve Policy in Focus After a cautious approach to monetary policy in early 2025, the Federal Reserve remains a central player in market dynamics. The Fed raised rates once in the first quarter, then paused amid signs of cooling inflation and slower job growth. Still, officials have indicated they are prepared to act again if inflation rebounds or growth accelerates unexpectedly. According to the June 2025 Federal Open Market Committee (FOMC) minutes, policymakers remain concerned about lingering “sticky” inflation in housing and services sectors, even as overall CPI trends downward [1]. Investors are watching closely for signs of further rate hikes or a pivot to cuts later this year, which will have significant implications for fixed-income portfolios and cash strategies. If rates remain elevated, short-duration bonds and high-yield savings accounts may continue to provide attractive yields. However, any dovish shift could signal a renewed opportunity in longer-duration fixed income assets. Aligning your fixed-income holdings with interest rate expectations is essential as the Fed recalibrates its next steps. Election-Year Policy Adjustments The 2024 U.S. elections have ushered in a new legislative landscape, and investors are beginning to see the effects. The current administration has introduced proposals that could reshape corporate tax policy, clean energy incentives, and antitrust regulations. While much of the proposed legislation remains in flux, certain sectors may face headwinds or tailwinds depending on how these policies evolve. A higher corporate income tax rate reduces the long-run capital stock and reduces the long-run size of the economy which could stir concern among large-cap equity investors, particularly in capital-intensive sectors like manufacturing and financials [2]. Meanwhile, expanded federal investment in renewable energy and electric vehicle infrastructure is likely to benefit clean energy firms and related technology providers. Investors should monitor Washington closely and consider how new regulations and tax structures could impact earnings, cash flow, and sector allocation. Your Wedbush financial advisor can help you anticipate potential outcomes and adjust accordingly. Sector and Global Performance Trends Technology stocks have continued to drive U.S. market gains in 2025, building on their momentum from the previous year. AI and semiconductor breakthroughs have fueled double-digit growth in several subsectors. However, valuations in these areas are increasingly stretched, prompting some investors to consider trimming exposure or rotating into underperforming sectors. While some European economic indicators show tentative improvements, export-heavy sectors like manufacturing and consumer electronics continue to face cost pressures from shifting U.S.–EU trade policies. Meanwhile, ever-changing U.S. tariffs have raised volatility in emerging markets, especially in sectors tied to semiconductors and clean energy. This mid-year point is a smart time to review your asset allocation. Are you overexposed to concentrated areas of growth? Have international or small-cap allocations kept pace with your broader financial goals? A balanced, diversified portfolio remains one of the most effective tools for managing market uncertainty. Stay Agile with Your Financial Plan The back half of 2025 will bring a continued mix of opportunity and risk. With Fed policy, legislative change, and sector shifts all in play, staying informed and agile is essential. Now is a great time to reconnect with your Wedbush Financial Advisor. Together, you can assess your portfolio, identify opportunities, and ensure your financial strategy is aligned with the evolving economic environment. Let’s work together to turn insights into action. Sources: [1] Federal Reserve Board. “FOMC Minutes – June 2025.” https://www.federalreserve.gov/monetarypolicy/fomcminutes.htm [2] Tax Foundation. https://taxfoundation.org [3] Triodos Investment Management. “Emerging Markets Mid-Year 2025 Investment Outlook.” https://www.triodos-im.com/articles/2025/emerging-markets-mid-year-2025-investment-outlook; Associated Press. “EU, US tariffs drive up prices, slow growth.” https://apnews.com/article/eu-tariffs-united-states-15-prices-growth-31e52a6dda17f3b5d70475e1cd0002ca; abrdn. “Emerging Markets: Risks Remain Amid Trade War De-escalation.” https://www.aberdeeninvestments.com/en-us/institutional/insights-and-research/emerging-markets-risks-remain-amid-trade-war-de-escalation Disclosure Wedbush Securities does not provide tax or legal advice. Please consult your tax or legal advisor. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice. Third-party entities, companies, and organizations that may be referenced on this page are not affiliated with Wedbush Securities or any of its affiliates. Opinions mentioned are that of the third-party and not of Wedbush Securities, the financial adviser and/registered representative, or any of our affiliates. Investment products involve investment risks including potential loss and are not insured by any federal agency, are not deposits or obligations of, or guaranteed by any financial institution and may involve loss of value. Past performance is not a guarantee of future returns. Any implementation of recommendations or investment strategies may generate fees, expenses, charges or commissions, based on the products and services. Any organization, company, individual, or third-party entity that are referenced on this page are not affiliated with Wedbush or any of its affiliates. The content on this page might not necessarily reflect the expertise of the investment professional and should be used for informational purposes only; the information provided on this page is not intended to be used as a recommendation of any kind, as it does not constitute an offer or