Last Tuesday, we covered three ways to keep more of your money in your hands as the year winds down—prepaying expenses, delaying billing, and making deductible purchases before December 31.
This week, let’s finish the list with three more moves that help ensure you’re claiming every deduction you deserve before closing the books on 2025.
- Use Credit Cards for Last-Minute Purchases
Here’s a simple but often-overlooked timing rule: if you charge a business expense to your credit card, the deduction counts on the date you make the charge, not when you pay the bill.
For sole proprietors or single-member LLCs, this means you can make last-minute purchases for office supplies, equipment, or professional services before year-end and still deduct them on your 2025 return.
Corporations can do the same if the card is issued in the business’s name. Just remember—if the card is personal, you’ll need to submit an expense report and have the company reimburse you before December 31 for the deduction to count.
- Don’t Worry About “Too Many” Deductions
If your business deductions exceed your income, that’s not necessarily a bad thing. You may have what’s known as a Net Operating Loss (NOL)—a tax loss that can be carried forward to offset profits in future years.
So don’t skip legitimate deductions out of fear they’ll “look bad.” Every legitimate expense you claim helps reduce taxable income now and may create savings opportunities down the road.
As long as your documentation is in order, you’re not taking “too many” deductions—you’re simply taking advantage of the ones you’ve earned.
- Deduct Improvements to Commercial Property (QIP)
If you’ve renovated or improved the interior of the commercial space you own—think new lighting, flooring, or layout—those upgrades may qualify as Qualified Improvement Property (QIP).
Unlike typical real estate improvements that depreciate over 39 years, QIP can be fully deducted immediately under Section 179 or 100% bonus depreciation.
To claim the deduction for 2025, make sure those improvements are placed in service by December 31.
The Bottom Line
When it comes to taxes, timing and planning make all the difference. Each of these six strategies—spanning both parts of this series—can help you finish 2025 strong, reduce what you owe, and keep your business’s money where it belongs: in your hands, not the IRS’s.
The clock is ticking, but there’s still time to take action before December 31. Review your expenses, talk with your accountant, and make every move count.
Because in business, smart tax strategies isn’t just last taxing—it can also provide more prosperous solutions.
For personalized tax advice tailored to your specific situation, contact Saunders Tax & Accounting at http://www.saunderstax.com or call us at 301-714-2071.Open Monday – Thursday 9 am to 5 pm. Awarded the Hagerstown Chamber of Commerce “2023 Small Business of the Year” and Hagerstown Hotlist 2024, we have been providing a Less Taxing Life and More Prosperous Solutions since 1984!
