When the calendar shifts into the closing quarter taxpayers race to finish the tax year with a clean slate and a favorable balance sheet.

The last three months—October, November, and December—present a prime chance to claim deductions that lower your taxable income in 2024.

Whether you’re a small business owner, a freelancer, or a household with a mortgage and a growing list of expenses the correct actions can slash thousands from the amount you owe.

Here are practical, 中小企業経営強化税制 商品 time‑sensitive tactics to boost deductions before the year closes.

  1. Create a "Final‑Minute" Expense Checklist
    Start by pulling together every receipt, invoice, and expense record from the past year.
    Identify categories that are often overlooked:
    Office supplies and equipment
    Home‑office expenses (if you qualify)
    Health‑related costs (medical, dental, and vision)
    Vehicle expenses (business mileage or actual costs)
    Professional development (courses, conferences, certifications)
    Charitable contributions
    Capturing everything before the December 31st deadline is crucial even modest expenses can stack up alongside other deductions.
  2. Accelerate Capital Spending
    Should your business have a capital budget, think about purchasing equipment, software, or machinery before year‑end Under Section 179, you can deduct the full cost—up to the limit—of qualifying property in the year it’s placed in service for many small businesses, this can mean a sizable deduction that would otherwise be spread over several years under depreciation.

If your planned purchase exceeds the Section 179 limit or you’re a larger entity, you can still benefit from bonus depreciation, which allows you to take an additional 100% first‑year deduction on qualifying property Just make sure you file the appropriate forms (Form 4562) and that the assets meet the IRS criteria.

  1. Make Retirement Plan Contributions
    Individual retirement accounts (IRAs) and employer‑sponsored plans such as 401(k)s, SEP‑IRAs, and SIMPLE IRAs all offer tax‑deferred growth and deduction potential. Drop a contribution before the April 15th deadline to lower your taxable income for 2024.
    Traditional IRA: Contributions are deductible up to $7,000 (or $6,500 if you’re under 50) in 2024, based on your income and employer plan involvement
    401(k) or similar employer plan: Contributions capped at $23,000 in 2024, plus an extra $7,500 catch‑up for those 50 and older
    SEP‑IRA or SIMPLE IRA: These are especially useful for self‑employed individuals and small business owners looking to contribute a larger percentage of income

Remember, contributions made by December 31st count for the 2024 tax year, so don’t wait until the last minute to hit your goal.

  1. Optimize the Home‑Office Deduction
    If you qualify for the home‑office deduction—i.e., you use a portion of your home exclusively and regularly for business—you can take either the simplified method (square footage) or the regular method (actual costs). In the last quarter, you may have already taken the simplified deduction, but if you’re still within the first year of using the space, you can still switch to the regular method for larger savings.

Key points:
Deduct utilities, rent or mortgage interest, property taxes, insurance, and part of your internet bill
Record detailed logs of business against personal use to substantiate your claim

  1. Harvest Tax Losses Through Strategic Sales
    If you hold investments that have declined in value, the final quarter is the perfect time to consider a tax‑loss harvesting strategy. By selling a losing investment, you can offset capital gains realized elsewhere in your portfolio, reducing your overall tax liability. Be mindful of the "wash‑sale" rule: if you buy the same or a substantially identical security within 30 days before or after the sale, the loss will be disallowed.
  2. Charitable Contributions—Cash & Non‑Cash
    Charity can be one of the most powerful deduction tools. Contributions of cash, stocks, or other appreciated assets are often deductible at fair market value, which can reduce the cost basis for the donor.
    Donating appreciated securities lets you sidestep capital gains tax on the appreciation while still earning a deduction at full market value
    Non‑cash gifts such as clothing, furniture, or vehicles must be valued by a qualified appraiser if they exceed $500 in value
    Keep a written acknowledgment from the charity, and don’t forget to retain the receipt for each contribution
  3. Capitalize on Holiday Deductions
    The holiday season can create legitimate business expenses that many overlook:
    Gifts for employees or clients (up to $25 per person per year)
    Marketing and promotional materials dispatched during the holidays
    Travel and lodging for business trips during Christmas or New Year’s

Make sure to separate personal from business gifts and retain receipts that clearly demonstrate the business purpose.

  1. Inspect Medical and Dental Expenses
    If you’re close to reaching the threshold for medical expense deductions—currently 7.5% of adjusted gross income—then the last quarter may be the sweet spot to front‑load expenses. Pay for a deductible health plan, dental work, or even elective procedures before year‑end. Maintain all receipts, as they’ll be needed to confirm the deduction.
  2. Prepay Estimated Taxes
    If you anticipate owing taxes and want to avoid interest or penalties, consider making a prepayment of estimated tax. The IRS allows you to make a payment by December 31st that will count for the current year. This is particularly helpful if a sizable deduction pushes your tax liability below zero
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Pub: 11 Sep 2025 17:07 UTC

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