Act Now! Year-end Tax-Saving Opportunities

As the year draws to a close, it's time to maximize your current year's tax deductions and other tax planning opportunities. Here's a brief checklist of moves you can make to help reduce current or future tax exposure.

Pre-pay Business Expenses

You may be able to reduce your 2024 tax bill by pre-paying certain business expenses before the year's end. For example, you can renew subscriptions, pay ahead for advertising, business insurance premiums, rent, business licenses, and other items that don't extend more than 12 months. Some other year-end moves that could cut your tax bill include:

Maintenance

Repair broken equipment and physical plant items by the end of the year.

Invest in Equipment

Buy business equipment and put it into service by year's end. Your business can deduct the entire cost of qualified equipment up to a purchase limit of $1,220,000 for tax year 2024.

Maximize QBI Deductions

If you meet certain income limits, owners of S corporations, partnerships, and sole proprietorships may deduct up to 20% of qualified business income (QBI). For tax year 2024, eligibility for the deduction begins to phase out at income levels of $182,100 for single filers and $364,200 for joint filers.* If you're over the income threshold, consider finding some more deductions.

Contribute to Retirement Accounts

Make matching contributions to employee 401(k)s.

Contribute to Health Savings Accounts (HSAs)

Employer contributions to employee HSAs, including your own, are deductible to the employer.

Deduct Losses

Scour your financials to find every deduction to which you are entitled. See your tax professional for details.

Give to Charity

Even donated equipment, computers or inventory may provide a useful year-end tax deduction.

Above all, be proactive. Book your appointment with your tax professional well before the end of the year so you don't have to scramble.

*Exceptions apply for certain service businesses.