Friendly reminder: Now is the time to speak with your accountant and make a plan to reduce your taxable income for the 2025 tax season! When it comes to smart ways for interior designers to reduce taxable income before year-end, it’s all about reinvesting in your business. Think of this as your perfect excuse to upgrade tools, streamline processes, and prep for the next busy season. Let’s dive into some end-of-year strategies tailored just for interior design businesses. (Please consult with your accountant for tax strategy. These are just some ideas to spark the conversation!)
Technology
Struggling with an old computer that restarts every time you’re loading up an important Zoom meeting? Wish you had an iPad to make client meetings more efficient and less clunky? Q4 is a great time to invest in new technology that will elevate the way you run your business!
Software & Subscriptions
AutoCAD, SketchUp, V-Ray, Adobe Creative Cloud, Quickbooks, Dubsado, Flodesk, Later, and more… Software subscriptions add up month after month! With most of these, you get a significant discount for purchasing annual access, rather than a month-to-month subscription. Collect the savings and decrease your taxable income all at once by paying up front for next year. This is one of the most common strategies among interior designers looking to reduce taxable income.
Strategy
Got big goals for your design business next year? Whether you want to update your website, analyze and streamline your business, or implement automation to save you time and effort next year, consulting expenses made before the end of the year are tax-deductible. Hiring a consultant (or better yet, our 4Dbiz team of Executive Coaching Partners) is a great way to reinvest back into yourself and your business.
Team
Through the end of the year, we are offering a Buy 20, Get 2 Free Promotion on Virtual Assistant Hours with our 4Dbiz team! Stock up on hours now and increase your profit margin within your projects next year. No Commitment hours don’t expire for active accounts – and every free hour adds up to more money in your pocket.
Events
Thinking about throwing a holiday event for your clients or hosting a social hour/reveal in a client’s completed home? Good news—those costs can be business deductions. Even sending thank-you gifts to VIP clients or hosting a small gathering with your subcontractors and collaborators are valid ways to reinvest into your business long-term! These thoughtful gestures are great ways to build relationships and lower your tax bill.
Final Thoughts: Plan Ahead, Save Smart
The key to reducing your taxable income is to invest in ways that benefit your design business long-term. Upgrading software, prepaying for services, and building your retirement fund are just a few ways to spend smart now so you’re set up for a stronger year ahead.
So take a moment between meetings, sip your latte, and plan out those end-of-year expenses. Your future self—and your tax return—will thank you.
(And if you need a little guidance, you know where to find us. We’ve got your back!)