5 Tax Strategies to Consider Before December 31 — And Why They Still Matter

We’re officially in the final stretch of the year, which means there’s still a little time left to make smart financial moves that can affect your 2025 tax bill. Whether you’re a business owner, content creator, freelancer, or real-estate agent, these five strategies can help you finish strong.

1. Accelerate Deductible Expenses

If you already know you’ll need something early next year, consider paying for it now:

• Office equipment

• Advertising or marketing

• Website costs

• Professional fees

• Software subscriptions

Paying before December 31 may allow you to deduct these expenses for 2025.

2. Defer Income (When Possible)

Not all income has to hit your books this year. For example, if you invoice clients, you may choose to send December invoices later in the month so payment arrives in January, depending on your accounting method.

This strategy isn’t right for everyone — so ask a tax professional before applying it.

3. Contribute to Retirement Accounts

If eligible, contributions to SEP-IRAs, solo 401(k)s, or traditional IRAs may reduce your taxable income. Even small contributions can help.

4. Make Last-Minute Equipment Purchases

Section 179 deductions allow many business owners to immediately expense qualifying equipment. If you’ve been considering a computer, camera, printer, or production gear (especially for creators), this may be your moment.

5. Review Estimated Taxes

If your income fluctuated this year, check whether you’ve paid in enough estimated taxes. Adjustments now can prevent penalties later.

Not sure which strategies make sense for you?

Every business is different — and year-end decisions should be intentional.

ARC Business Advisors can help you choose the smartest moves for your situation.