Year-End Tax Planning Checklist

Income & Deductions

Review estimated tax payments

Ensure you've paid enough to avoid underpayment penalties. Make Q4 payment by January 15th.

Maximize retirement contributions

401(k), 403(b), and traditional IRA contributions reduce taxable income. 2024 limits: $23,000 (401k), $7,000 (IRA), plus catch-up if 50+.

Harvest investment losses

Sell underperforming investments to offset capital gains. Up to $3,000 in losses can offset ordinary income.

Bunch charitable contributions

Consider donor-advised funds or bunching multiple years of donations to exceed standard deduction threshold.

Pay deductible expenses before year-end

Property taxes, state income taxes (up to $10k SALT cap), mortgage interest, and business expenses.

Purchase business equipment (Section 179)

Deduct up to $1,220,000 for qualifying equipment placed in service by December 31st.

Review entity structure

Evaluate if LLC, S-Corp, or C-Corp is optimal for your situation. Changes may require advance planning.

Maximize qualified business income (QBI) deduction

Up to 20% deduction for pass-through entities. Ensure you meet requirements and optimize W-2 wages.

Pay year-end bonuses or owner compensation

Deductible if paid by December 31st (accrual basis) or when paid (cash basis).