If you’re a high-income chiropractic associate or the owner of a successful practice, chances are you’re very busy seeing patients and running your business, and don’t have time to track every twist in the tax code or constantly think about how to best optimize your investments for tax efficiency, long-term growth and financial independence.
While there are many tax strategies worth considering, here are a few approaches to help you finish 2025 with greater control, more clarity, and less of your hard-earned income going to the IRS.
Maximize Charitable Giving
We love generosity and always encourage our clients to be cheerful givers. Instead of just writing a check to your church or charity, many times there is a better way. Keep in mind you’ll need to itemize your deductions vs. taking the standard deduction for there to be any potential tax benefit with the strategies listed below.
Option 1: Gifting Appreciated Stock. You want to give $5,000 to your church or charity. You also own stock that you originally bought for $2,500, and it’s now worth $5,000. Instead of writing a $5,000 check from your bank account, you can donate the appreciated stock directly from your brokerage account.
By doing this, you avoid paying capital gains tax on the $2,500 gain, yet you still get to deduct the full $5,000 fair market value on your tax return.
After making the donation, you “refill” your brokerage account by buying back the same stock with the $5,000 you were going to donate – resetting your cost basis at the higher value. The charity doesn’t pay any tax when it sells the stock, and you walk away with both a tax deduction and avoided capital gains. Many of our higher-net-worth clients no longer write checks to charities; instead, they use appreciated securities as their go-to gifting strategy.
Option 2: Qualified Charitable Contributions (QCDs). A qualified charitable distribution allows individuals aged 70½ or older to donate up to $108,000 in 2025 directly from their traditional IRA to a qualified charity without counting the distribution as taxable income. This strategy is especially beneficial for those age 73 or older, as it can satisfy all or part of their required minimum distribution (RMD) while avoiding the income tax normally owed on IRA withdrawals.
By reducing taxable income, QCDs can also help lower Medicare premiums and limit taxation on Social Security benefits. There are qualification hurdles that apply. Be sure to talk with your financial planner and accountant.
Option 3: Donor-Advised Fund (DAF): You sell a business, real estate, have substantial excess income, or a large part of your compensation is a bonus. You can use a DAF to front-load your giving while retaining flexibility on where and when the funds are distributed.
Example: $100K contribution to a DAF lowers your income by $100K potentially in the year you contribute (there are limits to the deduction based on your AGI – adjusted gross income). You’ll get a deduction and still have control over where the money goes and how the money is invested.
The DAF will hold investments that grow as the economy grows; therefore, the balance of the DAF can grow in value over the years even as you’re dispersing funds periodically. A DAF can be the gift that keeps on giving.
Accelerate, and Pay for, Business Expenses and Strategic Equipment Purchases
Practice owners, take note: If you’ve been planning to upgrade your adjusting tables, X-ray system, or invest in new equipment, software, or training, this might be the year to do it if you’re on track for high profit.
If the equipment or training is necessary, accelerates patient care, and improves workflow, it may make sense to pull the trigger before year-end. Just don’t fall into the trap of “spending to save on taxes.” Remember, spending $50,000 to save $15,000 in taxes means you’re still out $35,000 net.
Pre-paying expenses like rent, software, and services for early 2026 if you’re on a cash basis can be a simple move that can reduce your 2025 income.
Use a Defined Benefit Plan to Slash Taxable Income
If you are a high-earning practice owner who is already maxing out retirement plans and/or adding to brokerage accounts, a defined benefit plan (DBP) or cash balance plan can be a game changer.
These plans allow for massive pre-tax contributions to lower your taxable income if you qualify. Think of it as a “super 401(k)” for late-career wealth accumulation. Again, keep in mind that deferring taxes now does mean you’ll pay tax on that money later, but theoretically you’ll be in a lower tax bracket when you retire. This is where having a team ensuring your pre-tax, after-tax and no-tax buckets are filled up appropriately and strategically is wise.
Review Your Taxable Investment Strategy Before Dec. 31
Although the pre-tax strategies listed above can be highly effective in lowering the tax burden for this year, we also highly encourage tax strategies that will help your financial plan decades into the future.
Our most successful clients also build substantial brokerage (after-tax) accounts to gain liquidity, flexibility, and better control over tax timing. We call this the “early retirement bucket” of money. There are no age or income limits to these accounts, meaning you don’t have to wait until you’re 59½ to withdraw the money and you aren’t prohibited from contributing if you make too much money.
You can use the money in these accounts whenever you want, for whatever you want – and when there’s gain in the future, you’ll pay the more favorable capital gains tax vs. income tax on these dollars.
Final Thoughts
Whether you’re just starting out as an associate, earning $300,000 as a superstar employee, or making $1 million-plus as a multi-location owner, these strategies can help you finish the year in control – not in damage-control – and make the end of 2025 your most financially strategic one yet.
Disclaimer: The Wealth Group is a Securities and Exchange Registered Investment Advisor. No content contained herein should be construed as an offer for investment advice or an offer for the purchase or sale of any security, insurance or other investment product. Investments involve the risk of loss, including loss of principal. Please consult with a qualified financial, tax or legal professional before implementing any strategy presented here. Data presented here is obtained from believed reliable sources, but cannot be guaranteed as to completeness or accuracy.
