December 9, 2025

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5 Last-Minute Tax Deductions Small Business Owners Should Take Before December 31

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As the end of the year approaches in Woodland Hills and the San Fernando Valley, small business owners still have time to make strategic financial moves that can significantly reduce their tax bill. Here are five last-minute deductions you can take advantage of before December 31 hits.

1. Purchase Needed Equipment or Technology

If your business needs new computers, tools, or machinery, buying before the deadline can allow you to claim Section 179 or bonus depreciation.

2. Prepay Expenses for Next Year

Many business owners can legally prepay certain expenses:

✔ Rent

✔ Insurance

✔ Office supplies

✔ Software subscriptions

This can shift deductions into the current year.

3. Contribute to Retirement Plans

Whether you’re a sole proprietor, LLC, or S Corp, contributing to retirement plans can dramatically reduce taxable income.

4. Donate to Charity

Donations to qualified organizations made before December 31 can give you a meaningful deduction and support causes important to you.

5. Pay Outstanding Bills

Expenses incurred in December—even if paid in January—may still count, depending on your accounting method.

Want personalized guidance? We help small businesses across Woodland Hills, Calabasas, and Los Angeles make smart year-end tax decisions.

Schedule your year-end tax review today.

Shonty

Shonty Spatola, CPA, CFP®, is the founder and owner of Spatola & Company CPA, a small business accounting firm in Woodland Hills, California. For more than 17 years he has helped business owners across the San Fernando Valley and greater Los Angeles, including Encino, Calabasas, and Sherman Oaks, with proactive bookkeeping, tax planning, tax preparation, payroll, and outsourced CFO services. His firm has served over 2,000 small businesses and prepared more than 8,000 financial statements. Holding both CPA and CFP® designations, Shonty pairs day-to-day accounting with bigger-picture financial strategy so clients keep more of what they earn and plan ahead with confidence.