Summary of What This Blog Covers
- Switch to S Corp to lower self-employment taxes.
- Fund a SEP IRA for retirement and tax savings.
- Prepay expenses and track mileage to boost deductions.
- Run a tax projection to avoid surprises in April.
A Clearer Path to a Stronger Financial Future Starts with What You Do Today
There’s something powerful about a clean ending.
It’s not just about wrapping up the books or filing the forms. It’s about closing the year with clarity, intention, and the kind of confidence that says, “I saw what was coming, and I acted.”
For many business owners, especially those juggling growth, payroll, client needs, and personal priorities, tax season can feel like this mysterious fog on the horizon. You know it’s coming. You’re not quite sure how intense it will be. And you hope maybe this time it won’t be so overwhelming.
But what if it didn’t have to be that way?
What if the last quarter of the year wasn’t a mad dash or a guessing game but instead, a strategic window to make smart, meaningful choices?
At Insogna, we don’t just talk about numbers. We talk about people. We talk about legacies. We talk about how decisions made in November and December can echo across the next 12 months and far beyond. And we show you exactly how to take that step forward.
Let’s talk about seven smart tax moves you can make right now, before December 31, that could not only save you money but bring you peace of mind and maybe even a little pride in knowing you’re showing up for your future self, your team, and your business.
1. Elect S Corporation Status If It Aligns with Your Growth
This is a conversation we have often with entrepreneurs who have outgrown their current business entity but haven’t realized it yet.
If you’re operating as an LLC or sole proprietor, and your business is consistently netting over $75,000 annually, you may be overpaying in taxes without even realizing it.
Here’s what’s happening behind the scenes:
As a sole proprietor, all your business profits are subject to self-employment taxes. But by electing S Corporation status, you can divide your income into a reasonable salary and shareholder distributions. Only the salary portion is subject to payroll tax, which can mean significant savings.
But here’s the nuance:
This move isn’t one-size-fits-all. S Corps require formal payroll, additional filings, and responsible oversight. And if not handled well, they can cause more confusion than clarity. But when guided by an experienced Austin CPA, they can be a powerful tool for tax efficiency.
This isn’t about gaming the system. It’s about aligning your business structure with the reality of your revenue and the direction you’re heading. We help you make that call with precision not pressure.
2. Fund a SEP IRA and Build Wealth While Lowering Taxes
If there’s one move that combines long-term value with immediate impact, it’s this.
Too often, small business owners focus entirely on their business’s growth while putting their personal financial future on the back burner. But your retirement strategy doesn’t have to be complex or expensive to be powerful.
Enter the SEP IRA.
This retirement plan was designed specifically for entrepreneurs, freelancers, and self-employed professionals. It allows you to contribute up to 25% of your net compensation, up to a maximum of $69,000 for 2025. And every dollar you contribute is a deduction from your taxable income.
But it’s more than just a deduction. It’s a mindset shift. It’s a signal to yourself that your future matters not someday, but now. That you’re building something worth protecting.
At Insogna, we often ask our clients:
“What if your tax strategy also supported the life you want 10, 20, or 30 years from now?”
This is one way to start answering that question.
3. Prepay Expenses to Bring Tax Relief into This Year
Timing matters.
Especially when your business is on a cash-basis accounting method which most small businesses are. That means you recognize income when it’s received and deduct expenses when they’re paid.
So if you know you’ll have deductible expenses in January or February, paying them before December 31 means you can claim them on this year’s tax return.
Think about:
- Office rent
- Software subscriptions
- Marketing contracts
- Insurance premiums
- Retainers for consultants or legal services
Why does this matter? Because shifting those expenses into this tax year can bring down your taxable income now when you still have control over it.
We’re not suggesting you rush to spend. But if the expense is already planned and makes sense for your operations, this is a strategic window to optimize your tax outcome.
And when you work with a thoughtful CPA near you, you don’t just reduce numbers. You build intentionality into your financial decisions.
4. Get Your 1099s in Order Before the January Panic
It’s a quiet mistake that creeps up every year.
You work with independent contractors, pay them on time, treat them well, and then…January hits, and you’re scrambling to collect W-9s, track payments, and meet the IRS 1099 deadline.
It’s stressful. It’s avoidable. And the penalties for missing the deadline are real.
So let’s shift the rhythm.
Here’s what we recommend doing now:
- Gather W-9s from every contractor you’ve paid more than $600
- Review your vendor list for potential 1099 recipients
- Start preparing those forms before the holiday slowdown
At Insogna, this isn’t just a line item on our checklist. It’s part of the proactive rhythm we build with our clients. Because no one wants to spend January buried in paperwork when they could be launching new ideas or taking a breath after a long year.
5. Keep a Clean Mileage Log (Future You Will Thank You)
This is one of the most commonly missed deductions simply because it’s hard to retroactively piece together.
If you use a vehicle for business, the IRS lets you deduct either the actual expenses or the standard mileage rate, which is expected to hover around $0.68 per mile in 2025. But to claim it, you need solid records.
That means:
- Dates
- Starting location and destination
- Purpose of the trip
- Miles driven
The best approach? Use a mileage tracking app, or get into the habit of logging your miles daily or weekly. If you wait until April to try and remember what you drove in October, you’ll either overestimate (risky) or underclaim (costly).
Mileage may seem minor but over a year, it can translate into thousands in deductions. And we believe in making every mile count.
6. Buy Equipment Now and Leverage Section 179
There’s a principle we teach often: invest intentionally. And if you already plan to buy business equipment in Q1, it may make sense to move that purchase up before year-end.
Why? Section 179 of the IRS code allows you to deduct the full purchase price of qualifying equipment, technology, or vehicles in the year it’s placed into service.
In 2025, the limit is projected at $1.22 million.
This applies to:
- Laptops
- Office furniture
- Machinery
- Company vehicles
- Software
But there are rules. The equipment must be used at least 50% for business and must be placed in service not just purchased before December 31.
We help our clients assess whether a year-end investment makes tax sense or just adds unnecessary spend. Because strategy isn’t just about saving money, it’s about making every dollar work in alignment with your growth.
7. Schedule a Year-End Tax Projection: Your Most Powerful Move
This is where everything comes together.
A year-end tax projection is not just a spreadsheet. It’s a conversation about who you are as a business owner, where your numbers are trending, and what choices still remain on the table.
At Insogna, our tax projections include:
- Your estimated tax liability
- Your current year-to-date performance
- Actionable strategies that still count before the year closes
- A roadmap to help you avoid surprises in April
And perhaps most importantly, it gives you peace of mind.
Imagine walking into January knowing you’re not guessing. You’re prepared. That level of clarity doesn’t just serve your finances. It frees up headspace, decision-making power, and energy for what truly matters: your mission, your people, and your future.
The Bigger Why Behind All of This
Tax planning is technical, yes. But at its heart, it’s deeply personal.
Because every dollar saved is a dollar that can go toward hiring a new employee, upgrading your systems, taking a well-earned vacation, or investing in your next chapter.
And that’s why we show up for you.
We believe that business owners deserve more than vague advice or reactive accountants. You deserve strategic partners who listen deeply, care genuinely, and coach you through not just the numbers but the decisions behind them.
These seven moves? They’re not just tactics. They’re tools. They’re bridges to a stronger, clearer, more empowered version of your business.
And we would be honored to walk that path with you.
Let’s proactively plan so you aren’t surprised at tax time.
If you’re ready to close out this year with clarity, control, and confidence, let’s talk. Our Austin-based team of CPAs, tax advisors, and growth-focused professionals are here to help.
Let’s build the next step together.