It’s time for business owners to make hay while the sun shines.

Alert: Take advantage of year-end tax breaks for your business. Some tax benefits are being phased out or may not be around much longer. Of course, every situation is different, but here are 7 common tax strategies to consider.

Perform a quick fix. If more employees are returning to your regular workplace, you might want to spruce up the premises. Strategy: Make any minor repairs that are needed. The IRS allows you to currently deduct minor repairs to a business building, like fixing a leak or replacing a broken window. Conversely, the cost of major renovations or improvements must be capitalized and added to the property’s tax basis. Caution: The IRS may say that the entire cost of work done as part of a major project, including repairs, constitutes an improvement under a “general betterment plan.” Tip: Separate garden-variety repairs from major improvements to avoid this harsh tax result.

Install business equipment. Under current tax law, a business can potentially deduct all or most of the cost of qualified business property, including equipment, placed in service in 2024. Strategy: Get equipment ready for use. It must be functional to be “placed in service.” The TCJA doubled the Section 179 deduction to $1 million (indexed to $1.22 million for tax years beginning in 2024) while also reinstating first-year bonus depreciation. The first-year bonus depreciation percentage for 2024 is 60% Tip: Equipment installed anytime in 2024— even as late as December 31—may qualify for both tax breaks. But it must be ready for immediate use.

Launch a new venture. If you seize the opportunity to fill a business niche, you can take advantage of a special write-off for up to $5,000 for qualified start-up expenses. However, you must be “open for business” before 2025 to qualify for this tax break. Strategy: Begin offering goods or services before January 1 to beat the clock. This write-off includes costs that would normally be deductible by an ongoing business, like certain marketing expenses and wages. Tip: Start-up expenses above $5,000 must be capitalized and amortized over 180 months.

Extend your biz travel. Now that the pandemic has receded from its peak, more people are pressing the flesh around the country and even overseas. Strategy: Move up business trips scheduled for 2025 into 2024. As a result, you can increase your current write-offs. This includes deductions for lodging and meals while you’re away from home on business, plus transportation. Meal deductions are limited to 50% of the cost. Note: Instead of deducting the actual expenses for business use of a vehicle, you may be able to use the standard mileage deduction. For 2024, the flat rate is 67 cents per business mile (plus actual expenses for business-related tolls and parking fees).

Aim for worker tax credit. If your operation is like many businesses, the end-of-year holidays are your busiest season. Strategy: Hire workers from a designated “target group.” The tax law permits you to claim the Work Opportunity Tax Credit (WOTC) for the wages paid to qualified employees. Generally, the WOTC equals 40% of the firstyear wages of up to $6,000 per employee, for a maximum of $2,400. For disabled veterans, the credit may be claimed for the first $24,000 of wages, for a maximum of $9,600. There’s no limit on the number of credits your business can claim. Tip: The WOTC, which has been reinstated multiple times in the past, is currently available through 2025.

Switch to cash accounting. Usually, small business owners prefer to use the cash method of accounting for tax purposes. Simply put—it’s easier. But most C corporations could not qualify in the past. Strategy: Switch to the cash method now. A TCJA change can help pave the way. Before the TCJA, a C corporation could not use the cash method if the average annual gross receipts for the prior year exceeded $5 million. However, TCJA multiplied the gross receipts limit by 5 to $25 million (indexed to $30 million in 2024). Discuss this with your tax pro. Tip: Personal service corporations and most pass-through entities can use the cash method without regard to their gross receipts.

Invest in your company. Does your small business need a cash injection at year-end? The solution may be closer than you think. Strategy: Acquire “qualified small business stock” (QSBS) issued by the company. If certain requirements are met, you can exclude up to 100% of the taxable gain on a future sale of the QSBS. The requirements are as follows: • The stock must have been issued after August 10, 1993. • The stock can’t be acquired in exchange for other stock. • The issuing corporation must be a C corporation. • At least 80% of the corporation’s assets must be used in the active conduct of business. • Certain businesses, such as those involving real estate or personal services, are excluded. • The corporation can’t have more than $50 million in assets. Tip: Finally, you must own the stock for at least five years.