🎉 Last call: The tax moves you must make before Dec. 31

Maximize 401(k) Contributions: You have until Dec. 31 to hit your $23,500 limit ($31,000 if age 50+).

Harvest Investment Losses: Sell underperforming non-retirement investments to offset capital gains. You can deduct up to $3,000 of excess loss against ordinary income.

Take Required Minimum Distributions (RMDs): If you are age 73+, you must take your RMDs from traditional IRAs and 401(k)s by Dec. 31 to avoid a hefty 25 percent penalty.

Complete Charitable Giving:

• Make cash donations by Dec. 31 to qualify for the 2025 deduction.

• Consider “bunching” donations into a Donor Advised Fund (DAF) if you are on the edge of itemizing.

• Note: The SALT cap has been raised to $40,000, making itemizing attractive for far more people this year.

Spend FSA Funds: Check your Flexible Spending Account balance. While some plans offer a grace period or rollover, many are “use it or lose it” by Dec. 31.

Buy That Car (If It’s American-Made): The new legislation allows for a deduction on auto loan interest for US-assembled vehicles purchased for personal use. If you’re on the fence, buying before year-end locks this in for the 2025 tax year.

529 Plan Contributions: Many states require contributions be made by Dec. 31 to claim a state income tax deduction or credit for 2025.

Track Your Overtime: Under the new law, qualified overtime pay (the “time-and-a-half” portion) is now deductible up to $12,500 ($25,000 joint). Ensure your final paystubs clearly itemize this.

Verify Name & Address: Notify your employer immediately if you moved or changed your name in 2025 so your W-2 arrives correctly.

Update W-4: Did you get married, have a baby, or start a side hustle? Submitting a new W-4 now prevents a surprise tax bill next April.

Log Your Tips Separately: “No Tax on Tips” is in effect for 2025 (up to $25,000). You must have accurate logs distinguishing voluntary tips from mandatory service charges to claim this deduction.

Clean Up Expense Categories:

• Use apps like Neat or QuickBooks to scan stray receipts now.

• Specifically categorize “Business Meals” vs. “Entertainment” (meals are generally 50 percent deductible; entertainment is often 0 percent).

Establish a Solo 401(k): You must establish the plan by Dec. 31 to make contributions for 2025, though you have until tax time to actually fund it.

Purchase Needed Equipment: Need a new laptop or camera? Buying it before Dec. 31 allows you to take the deduction in the 2025 tax year.

Run Final Payroll: Ensure all bonuses and third-party sick pay are recorded.

Prepare 1099-NECs: Verify W-9s for all contractors you paid $600+ this year. You will need to file these by Jan. 31.

Account for 100% Bonus Depreciation: This was made permanent in July! If you bought machinery, vehicles, or software in 2025, you can likely write off the entire cost this year.

Hold Your Annual Meeting: If you are an LLC or Corp, hold your annual meeting and record minutes before Dec. 31 to maintain your corporate veil.

Close on “Placed in Service” Dates: To claim depreciation for 2025, the property must be ready and available for rent by Dec. 31.

Prepay Property Taxes: You can prepay 2026 property taxes before Dec. 31 to deduct them on your 2025 return (up to the $40,000 SALT cap).

Review Repair vs. Improvement: Categorize expenses carefully. “Repairs” (fixing a leak) are deductible immediately; “improvements” (new roof) must be depreciated over time.

Create a “Tax 2025” Folder: Physical or digital (Google Drive/Dropbox). Do this today so you have a place to throw forms as they arrive in January.

Watch for the New Forms:

• 1099-K: For Venmo/PayPal transactions over $20,000 in more than 200 transactions

• Form 1098-T: If you paid college tuition.

• Crypto/Digital Asset Reports: Exchanges are tightening reporting; ensure you have your transaction history for every trade.

Schedule Your Appointment: Tax pros are booking up fast due to the new complexities of the OBBBA legislation. Book your slot for February or March now.