2023 Year-End Tax Planning Strategies

December 11, 2023

Tax Briefing:  Planning Strategies and Techniques Available Through End of Year

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Effective 2023 year-end tax planning begins with understanding which strategies still remain available before December 31 and which can be implemented when filing your 2023 return. For businesses, now is the time to evaluate the timing of income and deductions, review fixed asset purchases for potential Section 179 expensing or bonus depreciation, and assess whether accelerating expenses or deferring revenue aligns with your 2023 and 2024 projections.

Insurance entities and other regulated organizations should pay particular attention to statutory and GAAP differences, reserve methodologies, and how book-tax differences may affect current and deferred tax positions.

Owners and executives should also consider opportunities related to retirement plan funding, stock compensation, and loss harvesting, as well as the impact of recent IRS guidance and inflation-adjusted thresholds on credits, deductions, and phaseouts.

A disciplined review of estimated tax payments, safe harbor requirements, and potential underpayment penalties can help refine cash flow planning and avoid surprises. Because each organization’s risk profile, entity structure, and jurisdictional footprint are different, a focused year-end conversation with a tax professional can help you prioritize which strategies are practical, compliant, and aligned with your long-term financial objectives.