Maximize deductions and credits for 2016 by making payments of expenses giving rise to the deduction or credit by December 31.
- Business expenses purchased with a credit card are deductible in the year purchased, regardless of when the credit card bill is paid.
- Delay sending late in the year invoices so that payment is not received until 2017.
- Make sure that any new equipment purchased in 2016 is placed in service before the end of the year to qualify for a Sec. 179 or depreciation deduction.