Last-Quarter Tax Deduction Playbook

When the calendar shifts into the closing quarter taxpayers scramble to wrap up the tax year with a clean slate and a favorable balance sheet.



The final three months—October, November, and December—are a prime opportunity to push for deductions that will reduce your taxable income in 2024.



Whether you’re a small business proprietor, a freelancer, or a household with a mortgage and accumulating expenses the right moves can shave thousands off the amount you owe.



The following time‑sensitive strategies help you maximize deductions before year‑end.



1. Compile a "Last‑Moment" Expense Checklist
Start by pulling together every receipt, invoice, and expense record from the past year.
Identify categories that are often overlooked:
Office supplies and equipment
Home‑office expenses (if you qualify)
Health‑related costs (medical, dental, and vision)
Vehicle expenses (business mileage or actual costs)
Professional development (courses, conferences, certifications)
Charitable contributions
Capturing everything before the December 31st deadline is crucial even modest expenses can stack up alongside other deductions.



2. Accelerate Capital Expenditures
Should your business have a capital budget, think about purchasing equipment, software, or 期末 節税対策 machinery before year‑end Under Section 179, you can deduct the full cost—up to the limit—of qualifying property in the year it’s placed in service for many small businesses, this offers a sizable deduction that would otherwise be spread over several years under depreciation.



If your planned purchase exceeds the Section 179 limit or you’re a larger entity, you can still benefit from bonus depreciation, which allows you to take an additional 100% first‑year deduction on qualifying property Ensure you file the right forms (Form 4562) and that the assets comply with IRS criteria.



3. Contribute to Retirement Plans
Individual retirement accounts (IRAs) and employer‑sponsored plans such as 401(k)s, SEP‑IRAs, and SIMPLE IRAs all offer tax‑deferred growth and deduction potential. Contribute before the April 15th deadline to cut your taxable income for 2024.
Traditional IRA: Contributions are deductible up to $7,000 (or $6,500 if you’re under 50) in 2024, based on your income and employer plan involvement
401(k) or similar employer plan: Contributions limited to $23,000 in 2024, with an extra $7,500 catch‑up for those 50+
SEP‑IRA or SIMPLE IRA: These are particularly valuable for self‑employed people and small business owners wishing to contribute a higher portion of income



Remember, contributions made by December 31st count for the 2024 tax year, so don’t wait until the last minute to hit your goal.



4. Optimize the Home‑Office Deduction
If you qualify for the home‑office deduction—i.e., you use a portion of your home exclusively and regularly for business—you can take either the simplified method (square footage) or the regular method (actual costs). In the last quarter, you may have already taken the simplified deduction, but if you’re still within the first year of using the space, you can still switch to the regular method for larger savings.



Key points:
Deduct utilities, rent or mortgage interest, property taxes, insurance, and part of your internet bill
Record detailed logs of business against personal use to substantiate your claim



5. Execute Tax‑Loss Harvesting
If you hold investments that have declined in value, the final quarter is the perfect time to consider a tax‑loss harvesting strategy. By selling a losing investment, you can offset capital gains realized elsewhere in your portfolio, reducing your overall tax liability. Be mindful of the "wash‑sale" rule: if you buy the same or a substantially identical security within 30 days before or after the sale, the loss will be disallowed.



6. Charitable Giving: Cash and Non‑Cash Contributions
Charity can be one of the most powerful deduction tools. Contributions of cash, stocks, or other appreciated assets are often deductible at fair market value, which can reduce the cost basis for the donor.
When you donate appreciated securities, you can dodge capital gains tax on the appreciation and still receive a deduction at full market value
Non‑cash gifts such as clothing, furniture, or vehicles must be valued by a qualified appraiser if they exceed $500 in value
Keep a written acknowledgment from the charity, and don’t forget to retain the receipt for each contribution



7. Capitalize on Holiday Deductions
The holiday season can create legitimate business expenses that many overlook:
Gifts for employees or clients (up to $25 per person annually)
Marketing and promotional materials dispatched during the holidays
Travel and lodging for business trips over Christmas or New Year’s



Make sure to separate personal from business gifts and retain receipts that clearly demonstrate the business purpose.



8. Review Medical and Dental Expenses
If you’re close to reaching the threshold for medical expense deductions—currently 7.5% of adjusted gross income—then the last quarter may be the sweet spot to front‑load expenses. Pay for a deductible health plan, dental work, or even elective procedures before year‑end. Save all receipts, as you’ll need them to verify the deduction.



9. Pay for Taxes Early
If you anticipate owing taxes and want to avoid interest or penalties, consider making a prepayment of estimated tax. The IRS allows you to make a payment by December 31st that will count for the current year. This can be especially useful if you have a large deduction that brings your tax liability below zero; you can use the overpayment to offset the next year’s tax.



10. Monitor Tax Law Updates
Tax law is dynamic, and last‑quarter changes can affect deductions. For example, the Tax Cuts and Jobs Act (TCJA) may still have provisions expiring by 2025 Stay informed about any extensions or modifications by checking IRS updates or consulting a tax professional.



11. File Correctly and Organize
Finally, no deduction is worth your time if you can’t document it. File the correct forms—Schedule C, Schedule E, Form 1040, etc.—and attach any necessary supporting documentation. Consider using tax software that flags potential deductions or consult a CPA to review your return before filing.



In conclusion, the last quarter presents a strategic window to reap the benefits of numerous deductions By speeding capital expenditures, maximizing retirement contributions, harvesting tax losses, and exploiting charitable giving, you can reduce your taxable income and keep more of your hard‑earned money Plan, act, and document—then unwind and enjoy the tax savings that stem from a well‑executed strategy.