December Financial Deadlines You Can't Afford to Miss

December isn't just about holiday shopping and vacation planning. It's one of the most important months for your finances. Miss these key deadlines, and you could lose money you've already earned, forfeit tax savings, or face costly penalties.

The next few weeks are packed with financial deadlines that most people either don't know about or forget until it's too late. But when you know what to look for and plan accordingly, December becomes an opportunity to maximize your financial position for both this year and next.

Here's your guide to critical financial deadlines happening in December. 

Use Your FSA or Lose It (December 31st)

Many Flexible Spending Accounts require you to use your contributions by December 31st or forfeit the money entirely.

What to do now:

• Check your FSA balance today

• Schedule any postponed medical appointments (dental, vision, physical therapy)

• Stock up on FSA-eligible items like sunscreen, first aid supplies, and contact lenses

• Submit pending reimbursement requests

• Confirm whether your plan offers a grace period or carryover option

Year-End Tax Planning Moves (December 31st)

Charitable Contributions

Make donations by December 31st to claim the deduction for 2025. For even greater tax savings, consider donating appreciated stock directly to charity. You'll avoid capital gains taxes while still claiming the full fair market value as a deduction.

Tax-Loss Harvesting

Sell investments at a loss to offset capital gains and reduce your tax bill. Losses must be realized by December 31st to be recognized in 2025. Just watch out for the wash sale rule—don't repurchase the same or substantially identical investment within 30 days.

Required Minimum Distributions (RMDs)

If you're 73 or older, you must take your required minimum distribution by December 31st to avoid a steep penalty. The IRS imposes a 25% excise tax on the amount not withdrawn, which can be reduced to 10% if the shortfall is corrected within two years. 

Note that if you turned 73 this year, you have until April 1st of next year to take your first RMD, but you'll still need to take your second RMD by December 31st of next year.

Accelerating Deductible Expenses

If you expect to be in a higher tax bracket this year than next, consider prepaying deductible expenses. 

Portfolio Rebalancing

Year-end is an excellent time to rebalance your portfolio back to your target allocation. In taxable accounts, prioritize selling investments with losses or long-term gains to minimize your tax impact.

Business Owner Deadlines (December 31st)

Section 179 Deduction

Purchase and place equipment in service by December 31st to deduct up to $1,250,000 immediately rather than depreciating the cost over several years.

Expense Documentation

Ensure all business expenses are properly documented and recorded, including business meals, travel, equipment purchases, and home office expenses.

Self-Employment Tax Planning

Consider whether deferring income to January or accelerating expenses into December makes sense for your specific tax situation.

Quick Reference: December Financial Deadlines

• FSA funds: Use by December 31st or lose them

• Tax-loss harvesting: Sell investments by December 31st to claim losses

• Charitable contributions: Complete by December 31st for 2025 deduction

• Roth conversions: Must be done by December 31st

• RMDs: Required by December 31st for those 73+ (or face 25% penalty)

• Business equipment purchases: Must be placed in service by December 31st for Section 179 deduction

How We Can Help You Maximize These Opportunities

December deadlines aren't just boxes to check; they're opportunities to optimize your financial position for both this year and next. But these opportunities only exist if you know about them and act in time.

The difference between simply meeting deadlines and strategically using them can be thousands of dollars in tax savings and improved financial outcomes. Whether it's calculating optimal contribution levels, implementing tax-loss harvesting strategies, coordinating charitable giving, or structuring business purchases for maximum benefit, the decisions you make in the next few weeks matter.

We have limited appointments available for December planning sessions. These sessions fill quickly because people understand that proactive December planning beats last-minute scrambling every time. Don't wait until December 30th, when your options are limited and it's too late to implement strategic moves.

Your future self, the one filing taxes in April, will thank you for the action you take today.

Ready to maximize your December opportunities? 

Contact us today. We'll review your complete financial picture, identify the opportunities most relevant to your situation, and create a clear action plan before these deadlines pass.

Call us: (828) 570-5760

Email us: info@denisestubbscpa.com

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This blog post is provided for educational purposes only and does not constitute personalized financial, tax, or investment advice. Tax laws are complex, change frequently, and vary based on individual circumstances. Before implementing any strategies discussed, please consult with qualified financial advisors, tax professionals, or CPAs who can assess your specific situation. This content should not be relied upon as a substitute for professional consultation.