Year-End Tax Planning Moves to Make Before December 31

Tax planning is a timing game. Many of the decisions that change your tax result—when to recognize income, when to pay deductible expenses, whether to harvest losses or accelerate purchases—only work if they happen before the year ends. After that, you're reporting history, not shaping it.

Moves worth reviewing before December 31

• Income and deduction timing: if you expect a higher bracket next year, consider accelerating deductions and deferring income; if the reverse, do the opposite.
• Retirement contributions: confirm employer plan and SEP/SIMPLE contribution windows, and check whether a back-end strategy still fits your cash flow.
• Loss harvesting: offset gains with investment losses, but watch the wash-sale rule so you don't disallow the loss.
• Owner compensation review: for S corp owners, confirm your reasonable salary is defensible and that payroll has been run correctly before year-end.
• Large purchases and fixed assets: timing of equipment placed in service can change depreciation deductions—review before buying.
• Charitable giving: bunching two years of gifts into one year can exceed the standard deduction and create a larger deduction.

Why timing is the whole point

A planning conversation in March can document what already happened. A conversation in November can still change it. The difference is not effort—it's the deadline. Once a transaction closes or the calendar turns, many options are simply gone.

Build a list with deadlines

A useful plan isn't a folder of ideas. It's a short list: the action, who's responsible, and the date it must be done. We help owners turn a year-end review into that kind of list, then revisit it as income and circumstances change through the year.

This article is general guidance, not tax advice for your specific situation. Current law, your facts, and timing all affect what applies to you.