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7 Year-End Tax Moves for NJ and NY Business Owners Before December 31
December 31 is a money deadline, and most business owners miss it. Once the year closes, many of the choices that could lower your tax bill close with it.
Here are seven moves I walk my New Jersey and New York clients through every fall.
1. Catch up your books
You can't plan with numbers you don't have. Reconcile every bank and credit card account through last month. If your books are months behind, start here before anything else. Our accounting and bookkeeping team can help you catch up quickly.
2. Estimate your profit for the year
Take your year-to-date profit and project it through December. Know your number before the IRS does, while there is still time to act on it.
3. Mark January 15, 2027 on your calendar
That is the due date for the fourth 2026 estimated tax payment for individuals, according to the IRS Form 1040-ES instructions. If you are self-employed or own a pass-through business, plan the cash for it now so it doesn't catch you off guard after the holidays.
4. Collect W-9s from every contractor
For payments made in 2026, the Form 1099-NEC reporting threshold is $2,000. It used to be $600. Collect a W-9 from every contractor you paid this year so you are ready to file in January. I cover this change in more detail in my post on the new 1099 rule for contractors.
5. Time big purchases on purpose
Equipment and other business property placed in service by December 31 may count toward this year's deductions. That can be a smart move, or it can be spending money just to save a fraction of it in tax. Do run it by your tax professional before you buy.
6. Review your insurance and your setup
If your business grew this year, check that your coverage still fits, and that your entity structure still makes sense. What worked at $50,000 in revenue may not be the best fit at $250,000. Our insurance and risk planning consultation is a good place to start.
7. Book your year-end review now
December calendars fill fast, for you and for your tax professional. A tax planning and strategy session in October or November gives you time to actually act on what you learn.
Save this list and share it with a business-owner friend who needs it.
Wealth DiversiFined is a tax and business concierge firm at 58-84 Norfolk St, Suite 14, Newark, NJ 07103. We help entrepreneurs, professionals and growing businesses across New Jersey and New York with formation, bookkeeping, tax preparation and tax planning. Call 862-332-0721 or book online.
This post is general education only. It is not tax or legal advice for your situation. Do speak with your own tax professional or attorney before acting on it.
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