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Year-End Tax Moves to Make Before December 31

The last weeks of the year are your final window to influence your tax bill. A few deliberate moves before December 31 can pay off in April.

By Chaudhry Ahmad, NorthPeak Financial Partners5 min read

01Time Your Income and Expenses

If you expect a lower-tax year ahead, you may defer income into January and pull deductible expenses into December. Cash-basis businesses have the most flexibility here.

02Make Needed Purchases

If you genuinely need equipment, buying and placing it in service before year-end can unlock a current-year deduction under Section 179, as covered in our equipment guide.

03Fund Retirement Accounts

Contributing to a SEP-IRA or Solo 401(k) lowers taxable income while building your future. Some deadlines fall at or after year-end, but planning happens now.

04Review Your Books

A year-end review catches missed deductions, miscategorized expenses, and surprises while there's still time to act. Don't wait for your preparer to find them in April.

05Check Your Estimated Payments

Make sure you've paid enough through the year to avoid a penalty. A catch-up payment before the deadline can save you interest.

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This article is general information, not individualized tax, legal, or financial advice. Every situation is different — reach out and we'll look at yours directly.