When the holiday season is in full swing many entrepreneurs are still planning their business strategy for the next year. Meanwhile, it’s an ideal moment to concentrate on the financial side of things—specifically, how to lower your tax liability before the calendar flips to January 1. Here are actionable, "hack"‑style tips that can help you retain more of your hard‑earned income in 2023, while preparing a smoother filing process for 2024.

1. Maximize Deductions on Your Home Office
If you legitimately use a portion of your home for business you can claim the Home Office deduction. Even if you’re not a full‑time remote worker, a dedicated desk area, or a part of an office used only for client meetings, you can qualify. Keep a detailed log of hours spent working from home and choose between the simplified method (a flat rate of $5 per square foot, up to 300 square feet) or the regular method (actual expenses prorated by square footage). The simplified method is quicker and often yields a comparable result.

2. Accelerate Depreciation Through Section 179 and Bonus Depreciation
When you purchase or finance equipment—such as computers, machinery, or software—for your business you can choose to expense it in the year of purchase. Section 179 allows you to write off up to $1.16 million (2023 limit) of qualifying property. After that, bonus depreciation lets you deduct 100 % of remaining qualifying assets under $2 million. This consolidation can markedly lower your taxable income.

3. Prepay Business Expenses
Should you have a predictable expense—like insurance premiums, office supplies, or professional fees consider paying next year’s amount now. The IRS permits deduction of prepaid expenses in the current year for 中小企業経営強化税制 商品 cash‑basis taxpayers.

4. Contribute to a Retirement Plan Before the Deadline
Setting up a simplified employee pension (SEP) IRA or a solo 401(k) can give you a double advantage: you reduce taxable income now and invest for the future. For a 2023 contribution deadline of December 31, you can still roll over funds from a previous plan, or for a 2024 plan, make contributions up to the 2024 deadline of March 15. The contribution limits are generous—up to 25 % of compensation or $66,000 (2023), whichever is less.

5. Take Advantage of the Qualified Business Income Deduction (QBI)
Many small business owners are eligible for a 20 % deduction on their qualified business income. This deduction is subject to income thresholds and certain limitations, but it can reduce taxable income substantially. Track your QBI accurately—this includes revenue, wages, and 25 % of qualified property.

6. Employ the "Buy and Hold" Strategy for Intangibles
Intangibles such as trademarks, patents, and customer lists can be capitalized and amortized over 15 years. If you plan to acquire or develop these assets before year‑end, you lock in an amortization schedule that will provide a steady deduction each year for the next decade.

7. Manage Inventory Smartly
If you’re a product seller, the "last‑in, first‑out" (LIFO) or "first‑in, first‑out" (FIFO) method can impact taxable income. LIFO can reduce taxable income in an inflationary market because older costs are matched against current sales. Switch your accounting method before the end of the year if you anticipate a price rise.

8. File an Election to Adopt a Cash‑Basis Method (If You’re Not Already)
The cash‑basis method allows you to deduct expenses when paid and recognize income when received. It can simplify year‑end bookkeeping and potentially lower taxable income if you have a lag between sales and cash inflow. To make this election, file Form 1125‑A by the tax‑year end.

9. Use a "Donor Advised Fund" for Charitable Contributions
If you’re planning a charitable donation, consider a donor advised fund (DAF). Contributions are tax‑deductible in the year they’re made, and you can distribute the funds over several years. This gives you a sizeable deduction now while preserving flexibility for future giving.

10. Record "Travel & Meals" with a Clear Business Purpose
The IRS scrutinizes travel and meal expenses. To avoid disallowance, keep receipts, note the business purpose, and limit meals to 50 % of the cost. Documenting a clear connection to a client meeting, partnership discussion, or training session can make the difference between a fully deductible expense and a 50 % reduction.

Key Takeaways
Start early—the sooner you plan, the more options you have.
Maintain receipts: even the smallest expense can add up.
Call a CPA: tax law evolves rapidly; professional guidance can reveal opportunities you might miss.
Automate: employ accounting software to flag deductible expenses and track depreciation schedules automatically.

Applying these hacks can cut your 2023 tax liability, build a stronger financial base for 2024, and free capital for growth. The holiday season is the perfect time to get your books in shape—so put on your accountant’s cap, roll up your sleeves, and get to work.