Smart Moves to Maximize Deductions Before Year-End
We’re in the home stretch of 2025! A few timely moves before December 31 can meaningfully lower your tax bill and set you up for a stronger start to 2026. If you’d like help prioritizing what matters for your situation, we’re here for you.
Smart Moves to Maximize Deductions Before Year-End
Before December 31, you still have time to:
- Prepay deductible expenses like rent, insurance, and software subscriptions
- Max out retirement contributions (401(k), SEP-IRA, SIMPLE, etc.)
- Purchase business equipment and vehicles that qualify for Section 179 or bonus depreciation
- Capture home office and vehicle deductions properly, if you’re self-employed
- Clean up your books to find missed write-offs or unrecorded expenses
These proactive steps can reduce your taxable income and improve your financial positioning going into the new year.
Capture home office and vehicle deductions properly, if you’re self-employed
💡 Pro Tip: If you plan to hire contractors or issue bonuses, doing so before year-end may shift those expenses into this year’s deductions (depending on accounting method).
💡 Quick Tip: Accountable Plan for S Corporations
If you’re taxed as an S Corporation, setting up an Accountable Plan can allow your business to reimburse you for home office expenses, internet, cell phone, mileage, and other out-of-pocket costs — without increasing your W-2 wages.
It’s a smart, IRS-approved way to reduce taxable income while covering real business expenses. If you do not have an Accountable Plan, these expenses are taxable as wages when reimbursed by an S Corp.
Dates to Remember!: Smart Moves to Maximize Deductions Before Year-End
- December 31, 2025 – Deadline for some contributions to retirement plans
- December 31, 2025 – Deadline for required minimum distributions (RMDs) from retirement accounts
- January 15th, 2026 – Fourth quarte estimated taxes due
Mirror Accounting Services is a CPA firm that specializes in accounting, advisory, and tax services. Whether you need assistance with bookkeeping, accounting, or financial planning, Mirror Accounting can guide you through the process.