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7 Essential Year-End Tax & Finance Moves to Make Before December 31

Published June 11, 2025

December 31 is the most important personal finance and tax deadline for the year. Here is a list of everything to look into before the end of the year:

Tax Loss Harvesting

Check your brokerage to see if you are carrying a net capital gain for the year. If you are, look elsewhere in your portfolio to see if you have any losses you can 'harvest' to offset the gains.

Gift Tax Exclusion

You can gift $19,000 to anyone this year without using up any of your lifetime gift tax exclusion. Combine this with your spouse for $38K total. You can also donate appreciated stock or fund a beneficiary's 529 plan by December 31.

Bunching Itemized Deductions

If you make under $500K, you can now deduct up to $40K in state & local taxes from your federal tax bill if you itemize. Consider bunching other deductions like making an extra mortgage payment or prepaying property tax.

Charitable Contributions

Donating appreciated stock saves you more on taxes, but the transfer must be completed by December 31. You can also donate a large amount to a Donor Advised Fund, get the deduction this year, and distribute funds later.

Taxable Roth Conversions

If you want to convert pre-tax retirement funds to a Roth account, you must do so by December 31 for it to count this year. This can be a great tax-saving move if you're in a lower tax bracket right now.

Business Owner Tax Planning

Prepay major business expenses before December 31, start a Solo 401K, make an election by year-end, and run payroll if you're an S-Corp to optimize your W-2 salary for the QBI deduction.

Spend Any Unused FSA Dollars

If you have an HSA, you can fund it until April 15, 2026, for the 2025 tax year. But FSAs are 'use it or lose it' — spend the remaining funds now!

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