Let’s walk through 5 top deductions many business owners forget — or underuse — and show how to claim them before the year ends.
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December isn’t just about holiday parties, gift shopping, and wrapping up the year — it’s also one of the most important times to take control of your business finances. Whether you run a small business, freelance full-time, or hustle on the side, the final weeks of 2025 are your last chance to lock in deductions that could significantly lower your tax bill and give your 2026 finances a strong head start.
With IRS rules firmly in place and audits still a possibility, knowing which deductions you can claim — and acting before the year ends — is critical. From prepaying expenses to claiming home-office costs, business travel, retirement contributions, and equipment write-offs, there are smart strategies many business owners overlook until it’s too late.
In this post, we’ll walk through 5 top deductions you can still claim this month, explain exactly how to maximize them, and give you practical tips to stay organized and audit-ready. Don’t wait until January — taking action now could save you thousands and make your year-end tax planning stress-free.
If you use cash‑basis accounting, you have more flexibility when it comes to prepaying expenses. That means paying certain business costs now — but deducting them for 2025.
💡 Why this matters in December: Prepaying now — properly — can shift deductible expenses into 2025 and lower your taxable income before year-end.
If your business needs gear — computers, furniture, office supplies, software subscriptions, tools — 2025 remains a solid year to deduct them.
Additionally, thanks to recent tax-law updates, you may be able to leverage bonus depreciation or expensing under Section 179 (when eligible) to accelerate write‑offs on larger equipment or qualifying business property placed in service during 2025.
✅ Tip: Buy before December 31, get it “in service,” and you can deduct in 2025 — ideal timing for year-end write‑offs.
If part of your home is used exclusively and regularly for your business (home office, inventory storage, etc.), you may qualify for a deduction — even if you’re a renter.
1. Simplified method: Deduct $5 per square foot of business‑only space (up to 300 sq ft) and no depreciation or recapture required.
2. Regular method: Deduct a portion of real expenses (mortgage/rent, utilities, insurance, maintenance, etc.) based on the % of home used for business.
✅ Good to know: The home‑office deduction is still available in 2025 for self‑employed and small‑business filers filing Schedule C. If you work from home and meet the “exclusive and regular business use” rules — now is a great time to claim this deduction and reduce your taxable income.
If you use your car for business, or if you travel for business purposes — 2025’s standard mileage and travel rules are significant.
1. Standard mileage rate (2025): 70¢ per mile for business travel. This includes driving to client meetings, meetings, supply runs, etc.
2. Business travel expenses: If you travel away from home for business (overnight or long enough to require rest), you may deduct travel expenses — transportation, lodging, and associated costs.
✅ Tip: Keep a mileage log, or records of dates, destinations, purpose of trip, and costs. Documentation helps support deductions if ever audited.
If you’re self-employed or run a small business, retirement contributions remain one of the best strategies to reduce taxable income. Additionally, proper planning (entity type, deductions, retirement contributions) can help reduce your self-employment tax burden. IRS+. If you haven’t contributed — or can add more — now is a great time to do so before year‑end.
Good record-keeping is what separates real deductions from audit headaches.
A: Yes — but only if the prepayment covers no more than 12 months, and the benefit doesn’t extend beyond the earlier of 12 months or the end of the next tax year.
A: Yes — as long as part of your home is used exclusively and regularly for business. You can use the simplified method (square footage) or the regular-expense method.
A: Yes — but you must track business-only miles through a log (date, business purpose, miles driven). Only business miles count.
A: Yes — equipment, furniture, and business‑related software/subscriptions are generally deductible when placed in service for business, especially in 2025.
A: Yes — retirement contributions reduce taxable income and remain a top tax strategy for business owners and self-employed individuals.
December 2025 is a tax gold‑mine for business owners who act now.
…there are smart, LEGAL deductions waiting — if you document properly. Don’t leave money on the table. Use these 5 strategies to reduce your tax bill, tighten up your books, and head into 2026 with financial clarity.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is for informational purposes only and not legal, tax, or financial advice. Each individual should consult their own advisor. Vincere accepts no responsibility for actions taken based on this content.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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