• If you have personally paid any business expenses this year, have the business reimburse you before year-end.

• These expenses include meals, business travel expenses, auto expenses, supplies, etc.

• Entertainment expenses generally are not deductible although there are some exceptions.

• If you need new equipment and the equipment will increase your ability to make more money in the future, purchase this before year-end.

• The Section 179 and bonus depreciation rules allows you to write-off equipment purchases.

• Although a possible increase in personal ordinary income tax rates may be on the horizon, we would like to remind clients that the fundamental concept of accelerating deductions and deferring income is still sound.

• As your plan permits, adjust your 401(k) Plan deferral contributions if necessary, before year-end to ensure you reach the maximum statutory limits for the year.

• For 2021, the 401(k) maximum limits have remained at $19,500 for those under 50 or $26,000 for those over 50 by year-end.

• Last year’s CARES Act enhanced tax incentives for making charitable contributions for the 2020 and 2021.

• One way to get a tax deduction for charitable contributions would be to claim an above-the-line deduction of up to $300.

• For individuals required to take IRA minimum distributions, you can make charitable contributions directly from your IRA to reduce gross income and ensure the best possible tax deduction.

• Ensure you have taken your RMDs by year-end, if applicable. Last year’s SECURE Act delayed the age at which individuals are required to take minimum distributions to age 72.