As December winds down, there’s still time to take strategic financial steps that may help reduce your tax bill before the year ends. For individuals and small business owners in Conway and throughout South Carolina, these final weeks are an opportunity to make informed decisions that can have a meaningful impact come tax season.

At Peavy & Associates, we help clients identify smart, last-minute financial moves that align with their goals and comply with current tax laws. Here’s what you should consider doing before December 31.

1. Accelerate or Defer Income Strategically

Depending on your financial situation, it may make sense to either accelerate income into this year or defer it to next year.

Examples include:

  • Delaying invoices until January
  • Deferring bonuses where possible
  • Timing asset sales carefully

An accountant can help determine which strategy makes the most sense for your tax bracket and long-term plan.

2. Prepay Deductible Expenses

Paying certain expenses before year-end may allow you to deduct them on this year’s return.

Common deductible expenses include:

  • Business supplies and equipment
  • Professional fees
  • Mortgage interest or property taxes (if applicable)
  • Medical expenses that exceed deduction thresholds

3. Review Capital Gains & Losses

If you’ve sold investments this year, reviewing capital gains and losses before December 31 is critical.

  • Tax-smart strategies may include:
  • Harvesting capital losses to offset gains
  • Rebalancing your investment portfolio
  • Avoiding unexpected tax exposure from asset sales

4. Confirm Retirement & Health Account Contributions

December is the last chance to make or adjust certain contributions that may reduce taxable income.

Before year-end, review:

  • 401(k) contribution limits
  • IRA or Roth IRA eligibility
  • Health Savings Account (HSA) contributions

5. Small Business Owners: Evaluate Payroll & Contractor Payments

Ensuring payroll and contractor records are accurate now can prevent delays and penalties later.

Important steps include:

  • Confirming employee vs. contractor classification
  • Verifying W-9 information
  • Preparing for January W-2 and 1099 filings

6. Don’t Overlook State & Local Tax Considerations

South Carolina tax rules can differ from federal regulations. Proper planning ensures you’re not missing deductions or credits available at the state level.

Take Action Before the Clock Runs Out

Once December 31 passes, many tax-saving opportunities disappear. Taking action now allows you to reduce stress, avoid surprises, and start the new year financially prepared.

At Peavy & Associates, we provide proactive tax planning and accounting services for individuals and businesses in Conway, South Carolina.

Schedule your year-end tax consultation today and make the most of the opportunities still available before December 31.