When the calendar shifts into the closing quarter taxpayers race to finish 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 run a small business, work as a freelancer, or manage a household with a mortgage and increasing expenses the correct actions can slash thousands from the amount you owe.

Here are practical, time‑sensitive tactics to boost deductions before the year closes.

1. Create a "Final‑Minute" 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
The most important step is to gather everything before the December 31st cutoff even modest expenses can stack up alongside other deductions.

2. Speed Up Capital Expenditures
Should your business have a capital budget, think about purchasing equipment, software, or machinery before year‑end Section 179 lets you deduct the entire cost—up to the limit—of qualifying property in the year it’s placed in service for many small businesses, this can mean 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 Just make sure you file the appropriate forms (Form 4562) and that the assets meet the IRS criteria.

3. Make Retirement Plan Contributions
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. Make a late‑year contribution before the April 15th deadline to reduce 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 capped at $23,000 in 2024, plus an extra $7,500 catch‑up for those 50 and older
SEP‑IRA or SIMPLE IRA: These are especially useful for self‑employed individuals and small business owners looking to contribute a larger percentage 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:
Take deductions for utilities, rent or mortgage interest, property taxes, 中小企業経営強化税制 商品 insurance, and a slice of your internet bill
Keep detailed logs of business use versus personal use to back up 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. Watch out for the "wash‑sale" rule: purchasing the same or a substantially identical security within 30 days before or after the sale disallows the loss.

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.
If you donate appreciated securities, you can avoid capital gains tax on the appreciation while still receiving a deduction at full market value
Non‑cash contributions such as clothing, furniture, or vehicles require appraisal by a qualified appraiser if they exceed $500 in value
Retain a written acknowledgment from the charity and preserve the receipt for every contribution

7. Take Advantage of "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

Be sure to distinguish between personal gifts and business gifts, and keep receipts that clearly show the business purpose.

8. Examine Medical & Dental Costs
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. Maintain all receipts, as they’ll be needed to confirm the deduction.

9. Prepay Estimated Taxes
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 is particularly helpful if a sizable deduction pushes your tax liability below zero; you can then apply the overpayment to the next year’s tax.

10. Monitor Tax Law Updates
Tax law is dynamic, and last‑quarter changes can affect deductions. For instance, the Tax Cuts and Jobs Act (TCJA) may still have provisions phased out 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 Accelerating capital expenditures, maximizing retirement contributions, harvesting tax losses, and leveraging charitable giving can lower your taxable income and keep more of your hard‑earned money Plan, act, and document—then relax and enjoy the tax savings that result from a well‑executed strategy.