The clock is officially ticking.
With the holidays in full swing and only 12 days left in the tax year, this is your final opportunity to take meaningful action that can reduce your 2025 tax bill.
If you’ve already implemented strategies from our earlier updates—great.
If not, there is still time for several powerful moves—but only if they are fully completed by December 31.
Below is your Year-End Tax Action Checklist. Review it carefully and act now to protect your savings.
What MUST Be Done by December 31, 2025?
For the actions below to count for the 2025 tax year, the transaction must be fully executed (not just started) by 11:59 PM on 12/31/25.
This is non-negotiable under IRS rules.
Business Equipment Purchases
To deduct or depreciate business assets, they must be “placed in service”—meaning delivered, installed, and ready for use by year-end.
Action Item:
Finalize purchases for equipment, software, or vehicles and ensure delivery before December 31.
Example:
Purchasing a $15,000 server on December 30 can create a $15,000 deduction, reducing your taxable income immediately.
Charitable Contributions
- Cash, check, or credit card: The donation date is when the check is mailed or the card is charged.
- Appreciated stock: The transfer must be completed in your brokerage account by December 31.
Action Item:
Make donations by December 31.
Important Note:
Transfers of appreciated stock typically take 3–7 business days. If you haven’t started, act immediately.
Prepay Certain Expenses (The Timing Strategy)
You may be able to pull deductions into 2025 by paying eligible January expenses early.
Action Item:
Consider prepaying:
- January mortgage payment (interest portion)
- Property taxes
- Q1 business insurance premiums
Example:
Paying a $2,400 insurance premium on December 30 gives you a $2,400 deduction for 2025.
Set Up Certain Retirement Plans
Some retirement plans must be established—not just funded—by December 31.
Action Item:
If you want a Solo 401(k) for 2025, the plan must be officially created and signed before year-end.
Important Distinction:
A SEP-IRA can be opened and funded later, but a Solo 401(k) must be established now.
Not Sure Whether to Accelerate Expenses?
This decision depends entirely on your 2025 versus 2026 income outlook.
Accelerate expenses and defer income if:
- 2025 is a high-income year
- 2026 income is similar or lower
- You want to reduce your current-year tax bill
Do the opposite if:
- 2026 income will be significantly higher
- You have expiring tax credits
- You want income taxed at today’s lower rate
This is not guesswork. We can model this quickly and clearly for you.
Prepare Now for a Smooth Tax Season
Use the final week of the year to get organized:
- Gather charitable donation receipts (written acknowledgment required for any single donation of $250 or more)
- Finalize your 2025 business mileage log
- Reconcile your bookkeeping through December
- Confirm total retirement contributions for the year
Your Final 2025 Action Plan
Time is critical. Many financial institutions and offices close early during the holidays.
- Review the checklist above
- Identify items requiring professional guidance
- Contact us immediately if you’re unsure about a purchase or income strategy
👉 [Urgent: Last-Minute Year-End Strategy Consultation]
We have reserved limited time next week for urgent year-end planning. Book now to avoid missing this final opportunity to save.
Wishing you a smooth and successful close to the year.
Best regards,
RSK Tax & Consulting, LLC
Helping you finish the year strong and start the next one smarter.
