The plan doesn t have to be funded until your return is due, but the account must be set up this year or no contributions will be allowed. Accelerate expenses Accelerating certain expenses gives you an immediate tax benefit. You get to deduct the expenses from your taxes, even if you waited until Dec. 31 to make the purchase or write the check. If you re self-employed, buy your first three months of supplies for the next year in December. You can always use more stamps.
Employees can accelerate employee business expenses as well.
Pay any outstanding bills on Dec. 31. If you don t have the cash, use your credit cards. The IRS gives you the deduction in the year of the charge, not when you actually pay the bill. Investment expenses can also be accelerated. While we re in the investment arena, don t forget to recognize any capital losses you may have incurred during the stock market s recent swings.