Last-Minute Tax Deductions You Can Still Take Before December 31

As the year winds down, many business owners assume it’s too late to lower their tax bill.
That’s not true.

There are still several legitimate, last-minute tax deductions you can take before December 31 that can reduce what you owe and set you up for a cleaner start next year.

Here’s what to look at before the clock runs out.

1. Equipment and Technology Purchases

If you need a new laptop, phone, monitor, desk, or office chair, buying it before year-end can pay off.

Most business equipment can be deducted in the year it’s placed into service, especially under Section 179 or standard depreciation rules.

Key things to remember:

• The item must be purchased and usable before December 31

• It must be primarily for business use

• Keep the receipt and payment record

If you’ve been putting off upgrading your setup, this is often one of the easiest year-end deductions to capture.

2. Software and Subscriptions

Monthly and annual subscriptions often get overlooked, but they add up.

Before year-end, review what you pay for:

• Accounting software

• CRM tools

• Scheduling platforms

• Design or marketing software

• Cloud storage or email services

If it’s used to run or grow your business, it’s generally deductible. Paying for an annual plan before December 31 can increase your deduction this year.

3. Retirement Contributions

Retirement contributions are one of the most powerful ways to lower taxable income.

Depending on your business structure, you may still be able to contribute to:

• A SEP IRA

• A Solo 401(k)

• Traditional IRA contributions

Some plans must be funded by December 31, while others allow contributions after year-end. This is a good time to confirm what applies to your situation so you do not miss an opportunity.

4. Business Mileage and Travel

If you drove for business throughout the year, make sure those miles are properly tracked.

Mileage deductions often get missed because:

• Trips were not logged consistently

• Personal and business use was mixed

• Receipts were never saved

Before December 31, review your calendar, client meetings, and travel history to ensure everything is captured. Even a few forgotten trips can turn into meaningful deductions.

5. Marketing and Advertising Expenses

Money spent to promote your business is deductible.

This includes:

• Website updates

• Branding work

• Photography or video

• Paid ads

• Marketing consultants

If you have planned marketing work for early next year, moving it up and paying before December 31 could shift the deduction into the current tax year.

6. Professional Services

Accounting, bookkeeping, legal, and consulting fees are deductible business expenses.

If you have outstanding invoices or planned work, paying them before year-end can increase your deductions now rather than next year.

This is also a good reminder that clean books make these deductions easier to claim without scrambling at tax time.

7. Health Insurance and HSA Contributions

If you are self-employed, health insurance premiums may be deductible.

You may also be able to make or increase:

• HSA contributions

• Certain medical related deductions tied to your business

Deadlines vary, so this is worth reviewing before the end of the year.

8. Inventory and Supplies

Office supplies, materials, and inventory purchased for business use are often deductible.

Before December 31, review what you regularly use and consider stocking up on items you know you will need early next year. This can increase deductions without wasting money.

Why Clean Books Matter Right Now

Many last-minute deductions get missed simply because books are behind or disorganized.

When transactions are uncategorized or accounts are not reconciled, it becomes harder to spot opportunities before year-end. That’s when business owners overpay in taxes without realizing it.

Final Thoughts

You do not need complicated strategies or risky loopholes to lower your tax bill.
You just need awareness, timing, and clean records.

If you want to make sure you are not missing deductions or want help getting your books tax-ready before year-end, learning more is the next step.

👉 Visit Red Leaf Bookkeeping to learn how we help business owners stay organized, save on taxes, and book a call when you are ready for support.