When the holiday season is in full swing many entrepreneurs are still thinking about their business strategy for the next year. In addition, it’s a prime opportunity to direct attention to the financial side of things—specifically, how to minimize your tax liability before the calendar flips to January 1. These are practical, "hack"‑style tips that can help you keep more of your hard‑earned money in 2023, while establishing a smoother filing process for 2024.

1. Increase Home Office Deductions
If you legitimately use a portion of your home for business you can claim the Home Office deduction. Even if you’re not a full‑time remote worker, a dedicated desk area, or a portion of an office used solely for client meetings, you may qualify. Keep a detailed log of hours spent working from home and opt for the simplified method (a flat rate of $5 per square foot, up to 300 square feet) or the regular method (actual expenses prorated by square footage). The simplified method is quicker and often yields a comparable result.

2. Accelerate Depreciation Through Section 179 and Bonus Depreciation
If you purchased or financed equipment—like computers, machinery, or software—for your business you can elect to expense it in the year of purchase. Section 179 allows you to write off up to $1.16 million (2023 limit) of qualifying property. After that, bonus depreciation lets you deduct 100 % of remaining qualifying assets under $2 million. This consolidation can significantly reduce your taxable income.

3. Pre‑Pay Business Expenses
If you incur a predictable expense—such as insurance premiums, office supplies, or professional fees consider paying next year’s amount now. The IRS lets you deduct prepaid expenses in the current year if you use a cash‑basis method.

4. Contribute to a Retirement Plan Before the Deadline
Setting up a simplified employee pension (SEP) IRA or a solo 401(k) can give you a double advantage: you reduce taxable income now and invest for the future. For a 2023 contribution deadline of December 31, you can still roll over funds from a previous plan, or for a 2024 plan, make contributions up to the 2024 deadline of March 15. The contribution limits are generous—up to 25 % of compensation or $66,000 (2023), whichever is less.

5. Take Advantage of the Qualified Business Income Deduction (QBI)
Many small business owners are eligible for a 20 % deduction on their qualified business income. This deduction is subject to income thresholds and certain limitations, but it can reduce taxable income substantially. Track your QBI accurately—this includes revenue, wages, and 25 % of qualified property.

6. Use the "Buy and Hold" Strategy for Intangible Assets
Intangibles such as trademarks, patents, and customer lists can be capitalized and amortized over 15 years. If you plan to acquire or develop these assets before year‑end, you lock in an amortization schedule that will provide a steady deduction each year for the next decade.

7. Manage Your Inventory Wisely
If you’re a product seller, the "last‑in, first‑out" (LIFO) or "first‑in, first‑out" (FIFO) method can impact taxable income. LIFO can reduce taxable income in an inflationary market because older costs are matched against current sales. Switch your accounting method before the end of the year if you anticipate a price rise.

8. File an Election to Adopt a Cash‑Basis Method (If Not Already)
The cash‑basis method allows you to deduct expenses when paid and recognize income when received. It can simplify year‑end bookkeeping and potentially lower taxable income if you have a lag between sales and cash inflow. To make this election, file Form 1125‑A by the tax‑year end.

9. Use a "Donor Advised Fund" for Charitable Contributions
If you’re planning a charitable donation, consider a donor advised fund (DAF). Contributions are tax‑deductible in the year they’re made, and you can distribute the funds over several years. This gives you a sizeable deduction now while preserving flexibility for future giving.

10. Keep Detailed Records of "Travel & Meals" with a Clear Business Purpose
The IRS scrutinizes travel and meal expenses. To avoid disallowance, keep receipts, note the business purpose, and limit meals to 50 % of the cost. Documenting a clear connection to a client meeting, partnership discussion, or 中小企業経営強化税制 商品 training session can make the difference between a fully deductible expense and a 50 % reduction.

Key Takeaways
Begin early: the earlier you plan, the more options you have.
Maintain receipts: even the smallest expense can add up.
Seek a CPA: tax law changes quickly; professional guidance can uncover opportunities you might miss.
Automate: employ accounting software to flag deductible expenses and track depreciation schedules automatically.

Applying these hacks can cut your 2023 tax liability, build a stronger financial base for 2024, and free capital for growth. The holiday season is the perfect time to get your books in shape—so put on your accountant’s cap, roll up your sleeves, and get to work.