Maximize Year-End Deductions
The final quarter is full of opportunities to reduce your taxable income before the year closes.
CHARITABLE DONATIONS
- Make cash or non-cash contributions to qualified charities by December 31st.
- Keep detailed receipts and acknowledgment letters for any donations over $250.
- Don’t forget donor-advised funds—these allow you to give now and distribute funds later while securing an immediate tax deduction.
EXTRA:
Holiday Spending and Gifting
- If you’re giving business gifts, keep them under $25 per recipient for deductibility.
- For individuals, the annual gift tax exclusion allows up to $19,000 per person in 2025 without triggering gift taxes.
- Be mindful of overextending credit cards—holiday debt can offset financial progress in the new year.
EXTRA: End-of-Year Business Moves
- Purchase needed equipment or software before December 31 to take advantage of Section 179 expensing.
- Pay outstanding vendor invoices or prepay certain expenses if cash flow allows.
- Review inventory levels—consider discounts or promotions to reduce stock and boost deductions.