2023 Year-End Tax Tips

January 4, 2024

Navigating the intricate landscape of year-end taxes is a priority for individuals and businesses alike. In our latest blog, our professionals share their wealth of knowledge to help you make informed decisions that can positively impact your bottom line.

Liz Hassler

As we approach the end of the year, it's essential to recognize the importance of year-end tax planning, a critical step in managing your financial health.

This time allows for a comprehensive review and adjustment of your financial strategy in light of recent tax law changes and regulations. It's an opportunity to identify and maximize deductions and credits, ensuring you're fully leveraging available benefits. Additionally, year-end planning is key to making informed decisions that not only optimize your current tax liabilities but also lay a strong foundation for your future financial prosperity. Understanding the tax implications of your financial choices is crucial in transforming a good financial year into a great one.

For those seeking more detailed insights, our Year-End Planning page offers a wealth of resources, including a comprehensive guide on current tax planning trends. 

Stacy Weller

As we close out the year, it's crucial to focus on strategic estate planning.

Individuals should consider proactive gifting strategies in light of the upcoming reduction in estate tax exemptions. Currently, individuals can gift up to $12.92 million without incurring gift tax, a limit set to significantly decrease by the end of 2025. Taking advantage of this higher exemption now, through direct gifting or establishing irrevocable trusts, can be a strategic move to minimize future estate tax liabilities. It's essential to collaborate with estate planning professionals to ensure these strategies align with legal requirements and your personal financial goals.

Bryanna Fredericks

Bonus depreciation began to phase down in 2023 with a reduction to an 80% deduction (from 100% for 2018-2022). The phasedown continues by 20% per year with a further reduction to 60% for 2024. With these changes, a company can take several other actions to maximize its deductions for the costs of tangible property used in its business.
  • Consider the company’s de minimis expensing policy, and review for capitalized purchases that might be below this threshold and can be expensed. Companies with audited financial statements may use a threshold of $5,000 per asset, while other businesses may use $2,500.
  • Review capitalized costs for those that may be deducted as repairs to an existing asset.
  • Conduct a cost segregation study of buildings purchased by the business to identify assets with shorter depreciable lives and eligible for bonus depreciation.
  • Review fixed asset depreciation schedules to identify assets that might have incorrect lives or methods and consider a change of accounting method. Also consider assets that have been abandoned by the business with write-offs of remaining undepreciated amounts as an ordinary loss.

David Cordier

Individual Tip #1 – File your tax returns electronically.

When filing a tax return with a refund, you will get your refund back quicker when filing electronically (generally three to six weeks earlier with the IRS). If you owe money with your tax return, you can file the tax return electronically but wait until the deadline to send in payment for the balance due with your tax return. Another advantage to electronically filing is that the IRS acknowledges that they received your tax return. This does not always occur when paper filing your tax return, even if you file your tax return via certified mail.

Kim Vandergrift

End the Year on a High Note: As we bid farewell to another year, it's crucial for businesses to focus on financial health to ensure a strong finish to the year and start to the new year.

Key tools to ensuring a successful business:

  • Timely and Accurate Financial Results – Avoid surprises due to messy financial records. Know your bottom line now.
  • Financial Planning and Budgeting – Understand what is coming in 2024 and be proactive instead of reactive when it comes to running your business.
  • Effective Cash Flow Management – Project and prepare for your financial needs.
  • Effective Debt Management – Understand the terms of your agreements and their impact on your business.
  • Strong Financial Team – Make sure you have the right financial people in your organization for your size, complexity, and budget.

Preparing now means a more successful and stress-free new year. Unlock your business’ full financial potential with our expert outsourced CFO and controller services. Visit here to learn how we can help drive your success forward.


We hope these suggestions will help you prepare your business as we move into the new year. Please contact your Herbein professional through the form below if you have any questions regarding the suggestions mentioned in this blog or any other tax return preparation questions.