As business operators and investors step into 2025, it’s time to focus on strategies and opportunities that can set the stage for a successful year. Whether you’re a business owner or just looking to make the most of the changing economic landscape, staying ahead requires preparation and adaptability.
To that end, we’ve identified five key areas that deserve your attention which are likely to generate the most ROI. Five Key Areas to Focus on in 2025:
1. Inflation and Interest Rates
The Federal Reserve’s recent decisions have created a unique economic environment for 2025. While short-term interest rates have decreased slightly, long-term rates have ticked up, reflecting projections of limited rate cuts this year. Understanding these trends is crucial for anyone navigating investments, mortgages, or debt restructuring.
For instance, businesses might benefit from locking in favorable rates on short-term financing, while homeowners or prospective buyers need to weigh the cost of refinancing or purchasing property against potential long-term gains. The key is to stay informed about market movements and plan strategically.
2. Rising Vehicle Operational Costs
In recent years, the automotive sector has faced dramatic cost shifts. While new and used vehicle prices have stabilized, auto insurance premiums have surged by an average of 12.7%, and repair costs have risen by 7.8%. Urban markets have been particularly affected, with mechanic labor rates often exceeding $150 per hour—a significant burden for fleet owners and individuals alike.
For business owners relying on vehicle fleets, such as those in the shared economy who rent on Turo or Getaround, these rising costs can eat into margins. Proactive strategies include prepaying insurance premiums to capture savings, prioritizing year-end maintenance to avoid higher costs in 2025, and exploring alternative providers. One client said their top strategy will be learning how to do the maintenance on YouTube. By optimizing maintenance schedules, car-based businesses can maintain profitability and operational efficiency.
3. FINCEN Reporting Compliance
It’s not news at this point that small businesses now have to file a Beneficial Ownership Statement under the Corporate Transparency Act (CTA). So what is new?
Before we share our thoughts, let’s recap core requirements for BOI:
- Companies formed before January 1, 2024, must have submitted their reports by January 13, 2025 (now passed).
- Companies formed in 2025 or later must file their reports within 30 days of incorporation.
- Companies that do not comply or provide misleading information can face financial penalties or even have to go to jail.
- If you don’t have an LLC, corporation, or another entity classified as a “reporting company” under the Corporate Transparency Act (CTA), you likely don’t need to file a BOI.
So, what’s new?
It went from “You’re going to jail” if you don’t file, to “You maybe need to file, kinda…”
Don’t take our word for it. Just look at the disclaimer on the top of the FinCEN website.
“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
For the time being, you don’t need to file, but something (perhaps that a joint house of Congress passed a bill they discussed for many years) tells us it will be a requirement. The ills of shadow LLC are too great to not create compliance mandates, the question is how and when?
4. Maximizing Bonus Depreciation
Bonus depreciation remains a valuable tax-saving tool, though it continues to phase down. In 2025, the deduction percentage drops further from 80% to 60% in the current tax year (2024) and to 40% in the current calendar year (2025). For businesses considering significant investments in equipment or property, every year represents an important opportunity to lock in higher deductions, before rates go down.
As with all things, timing is everything. While making purchases now allows businesses to capture current rates, some may opt to delay large expenditures in hopes that Congress reinstates full bonus depreciation. Hummer H2, anyone? I’ll wait until the tax rules change.
5. Leveraging Enhanced EV Tax Credits
Sustainability initiatives are gaining momentum, and the enhanced electric vehicle (EV) tax credits introduced in 2024 remain a game-changer for 2025. These credits provide substantial financial incentives for businesses and individuals to adopt EVs, including higher credit amounts and expanded eligibility criteria.
However, it’s not all smooth sailing for EV owners. States are increasingly imposing higher registration fees to offset declining gas tax revenues (like Texas), which once funded infrastructure projects. For example, Vermont has introduced a $178 annual fee for EV owners starting this year, double the fee for internal combustion vehicles. In Texas the fee is about $230. This trend isn’t unique—39 states now have similar fees. What does the government do when consumers find resource efficiency that drops their overall costs? They create a tax. How redundant. Well, now maybe we can fill those potholes.
Additionally, the stricter EV tax credit requirements implemented in 2025 have disrupted the market. These new rules, aimed at encouraging U.S.-based manufacturing and domestic battery material sourcing, have disqualified several popular EV and plug-in hybrid models from federal incentives. As a result, potential buyers and businesses must navigate these changes carefully, balancing the benefits of sustainability with the increasing costs and shifting eligibility requirements.
For businesses integrating EVs into their operations, the key lies in understanding state-specific regulations and leveraging available incentives while preparing for potential additional costs. Whether you’re considering fleet upgrades or personal purchases, EV tax credits and strategic planning can reduce expenses and align with sustainability goals.
6. An Honorable Mention: Asset Prices
This is five to thrive, but we couldn’t help mentioning asset prices. While it’s too early to tell, we’ve seen major markets drop in value, while others have remained competitive. California, despite fires, unemployment and the exit of businesses is still a strong real estate market with more buyers than sellers. New markets (except for maybe Florida) remain competitive. All the while, we watch with an uneasy energy, ready for some kind of big event or change. Outcome here is to be determined, we’ll keep an eye out for February’s release of New Residential Construction.
Closing Thoughts
By focusing on these five key areas, you at least start with a focus to deal with potential headwinds. The post easy-money years have taught us that buckling up and getting smart will be important for the next few years ahead. With costs rising, assets falling, and interest rates going up and down, easy money and high demand won’t come easy.
The inefficient will fall: either by closing doors, or with owners falling back into the workforce putting aside their dreams for wealth because they couldn’t prioritize the hard work it takes to create value. Others will sell as frustration builds and witty buyers come in offering cents on the dollar.
But the few who anticipate the change, who stay on the front foot to find good deals and build good processes will thrive. Eating up demand from those who didn’t make it, or acquiring them on the cheap. We hope you find yourself in bucket #2.
2025 won’t be better because it gets easier; we also know it will take resilience and innovation to thrive. 2025 will be better because we’re stronger.
If you’re interested in meeting with an advisor, set up a one-on-one strategy session Shared Economy Tax. Our tax pros have deep expertise in state & local taxes, and they can answer your toughest tax questions.
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