There’s money on the table. YOUR money.
And if you don’t grab it by December 31st, it’s gone.
These year-end tax moves are legal, IRS-approved strategies business owners can use to reduce taxable income and keep more cash in their business this year. Miss the deadline, and the opportunity disappears.
The IRS allows cash-basis businesses to prepay up to 12 months of certain expenses — including rent, leases, and insurance — and deduct the full amount in the current tax year.
Example:
Pay $36,000 in December for next year’s rent?
That’s a $36,000 deduction now.
Important: Mail the check certified and keep proof. For tax purposes, the IRS looks at the mailing date, not when the check is received.
If you’re on the cash basis, income is taxed when it’s received — not when it’s earned.
That means:
You’ve just pushed that income — and the tax bill — into next year.
Need computers, furniture, or machinery?
Section 179 allows many business owners to deduct 100% of qualifying equipment costs this year — but only if the asset is placed in service by December 31.
Ordering isn’t enough. It must be in use before year-end.
Sole proprietors and cash-basis businesses get a powerful advantage:
The deduction happens on the day the charge is made — not when the card is paid off.
That means you can stock up on legitimate business expenses before the year ends and deduct them immediately.
Many business owners are afraid of having “too many” deductions.
That fear costs money.
If a deduction is legitimate, you should claim it. And if those deductions create a loss, that loss can carry forward and reduce next year’s taxes.
For guidance on what qualifies as an ordinary and necessary business expense, see IRS Publication 535.
Made interior improvements to commercial property this year?
If those improvements are placed in service by December 31, they may be 100% deductible now instead of being depreciated over 39 years.
Started doesn’t count. Finished and in use does.
The calendar doesn’t care how busy you are.
If these year-end tax moves aren’t completed by December 31, the savings are gone — permanently.
Move now. Waiting costs money.
P.S. That prepaid rent strategy alone can save tens of thousands — but the check must be mailed by December 31, not received. That detail matters.
Next steps:
The December 31 tax deadline is non-negotiable. If you want guidance on year-end tax strategies for business owners, schedule your free tax strategy session now.