Summary of What This Blog Covers
- Key strategies to reduce taxes before December 31.
- When and why to consider S Corp election.
- Deductions for mileage, home office, and retirement contributions.
- Importance of meeting with a CPA before year-end.
The Problem: The Year Is Ending And You’re Not Sure What to Do Next
There’s something about the fourth quarter that feels heavy.
You’re reflecting on everything you’ve built. The long nights. The clients you served well. The pivots. The risks that paid off and the ones that didn’t. You’ve been so focused on delivering that your financial planning may have taken a back seat.
Now you’re seeing December creeping up on your calendar, and you’re wondering:
- Am I doing enough to reduce what I owe?
- Did I miss something that could have saved me money?
- Is it too late to fix anything?
And maybe beneath all that is a deeper, quieter question:
Am I running my business, or is it quietly running me?
You’re not alone. This is where we meet so many of our clients at Insogna. Not in crisis, but in that subtle overwhelm that comes from wanting to do things right but not knowing exactly where to start.
This blog is your reset. It’s a walk-through of what actually matters in your year-end tax planning, why it matters, and how to make choices now that will serve you well into the year ahead.
Why Year-End Planning Matters More Than Most People Think
It’s easy to think of tax planning as something you deal with in March or April. But the truth is, your best opportunities to reduce your tax liability happen in Q4. Once the year closes, many of those decisions are locked in.
The tax code gives us tools to save, build, and protect our income but only if we use them in time.
That’s why now, while there’s still time, is the moment to act.
Let’s walk through the seven most impactful tax moves you can make before year-end to preserve your profits, reduce surprises, and step into the next chapter of your business with more peace and more control.
1. Review Your Projected Income and Expenses
Before you can make decisions about how to reduce your tax bill, you need to know what your numbers are trying to tell you.
Start by sitting down with your bookkeeping (or your bookkeeper). Look at:
- How much income you’ve earned this year
- How much more you expect before year-end
- Your current expenses and what’s still coming up
This isn’t about perfection. It’s about creating a realistic picture of your financial performance. And from that picture, we can begin to shape strategy.
If you don’t have clean books yet, this is the time to get support. At Insogna, we often step in at this point to clean up records, reconcile accounts, and build out projections. That clarity becomes the foundation for everything else, whether it’s planning an S Corp election or maximizing deductions.
This isn’t about fear. It’s about facing your numbers with support, instead of shame.
2. Evaluate Whether It’s Time to Switch to an S Corp
Here’s one of the most powerful, yet underutilized, tools in the small business tax strategy playbook: S Corp election.
If you’re operating as a sole proprietor or single-member LLC and your net income is approaching or exceeding $80,000, it’s time to evaluate whether electing S Corp status could reduce your self-employment taxes.
Why this matters:
As a sole proprietor, all of your net business income is subject to self-employment tax, which sits at 15.3%. But as an S Corp, you can pay yourself a reasonable salary (subject to payroll tax) and take the remaining profit as distributions which are not subject to self-employment tax.
This structure can save you thousands of dollars every year, but the decision must be carefully timed.
Working with a certified CPA near you or a tax advisor in Austin helps you determine:
- If your income level supports the switch
- What a reasonable salary looks like in your industry
- How to handle payroll setup and compliance
- Whether this should be done now or in early Q1
When we walk clients through this at Insogna, we never rush the process. We model the savings. We talk through the operations. We help you feel informed and ready, not pressured or confused.
3. Track Your Mileage and Home Office Expenses (While You Still Can)
These two deductions are some of the most commonly missed but they can also add up fast when tracked properly.
If you’ve used your vehicle for business this year:
- Rebuild your mileage logs using your calendar and location data
- Capture the business purpose of those trips
- Compare actual expenses to the standard mileage rate (currently 65.5 cents per mile)
If you’ve worked from a dedicated space in your home:
- Measure the square footage used exclusively for business
- Gather bills for internet, electricity, and other shared expenses
- Review whether the simplified or actual expense method gives you the greater deduction
Too often, business owners wait until March to scramble through emails and receipts. But these are year-specific deductions. You can’t go back and requalify them after the year closes.
Let your tax accountant near you help you determine what qualifies, and how to document it appropriately. At Insogna, we even help clients automate this process for the coming year because stress isn’t part of the strategy.
4. Assess Equipment and Asset Purchases
Now is a good time to consider whether it makes sense to invest in business-related equipment or tools before year-end.
Why? Thanks to Section 179, you may be able to deduct the full cost of qualified assets such as computers, office furniture, or tools in the year they’re placed in service.
This is not about spending just to save on taxes. It’s about making thoughtful purchases that support your work while also reducing your taxable income.
Ask yourself:
- What will I need to upgrade anyway in the next 3–6 months?
- Will this investment improve efficiency, capacity, or client delivery?
- Do I have the cash flow to make this decision from a place of strength?
We help our clients evaluate this through the lens of ROI, not just tax strategy. Because what serves your business must also serve your mission and your energy.
5. Consider Prepaying Eligible Business Expenses
If you use the cash method of accounting, you may be able to accelerate deductions by prepaying certain business expenses before December 31.
This could include:
- January rent or utilities
- Annual software subscriptions
- Insurance premiums
- Professional memberships
Timing these payments into the current year could bring your taxable income down, which matters if you’re trying to stay in a lower tax bracket or reduce estimated payments.
This move isn’t for everyone. But with proper planning and guidance from a certified public accountant near you, it can be a powerful tool for controlling your tax liability with intention.
6. Maximize Retirement Contributions
One of the most meaningful ways to both reduce taxes and build wealth is to contribute to retirement.
You may have access to several options:
- Traditional or Roth IRAs (subject to income limits and contribution caps)
- SEP IRAs (up to 25% of income or $69,000 in 2025)
- Solo 401(k)s, which allow for both employee and employer contributions
Some accounts must be established by December 31 to qualify even if you don’t contribute until April.
What we love about this strategy is that it’s not just about this year’s taxes. It’s about supporting future you. The one who took the risk, built the business, and deserves a retirement that reflects that effort.
At Insogna, we help clients create retirement strategies that honor their income, lifestyle, and vision. Because tax planning is also life planning.
7. Meet With a CPA Before Year-End
There is one move that makes every other move clearer, easier, and more effective: meeting with your CPA before the year closes.
Too many business owners wait until tax season to start planning. By then, the year is over, and most of your best tax strategies are no longer available.
When you meet with your Austin-based CPA or licensed tax advisor near you in Q4, you can:
- Project your tax bill before it’s due
- Adjust your estimated payments
- Plan contributions and purchases
- Evaluate entity structure changes
- Ask the questions that have been quietly keeping you up at night
Tax strategy is not about being perfect. It’s about being prepared. It’s about choosing leadership over last-minute.
And that’s what we offer at Insogna. Not just filing, but forward-thinking financial guidance, rooted in your reality and designed for your growth.
What’s At Stake If You Do Nothing?
Let’s be honest: it’s easy to let this slide. You’ve got a business to run, maybe a family to care for, and limited energy for spreadsheets.
But here’s the cost of waiting:
- Missing your window for S Corp election
- Paying more in self-employment taxes than you need to
- Skipping valid deductions because they weren’t documented in time
- Feeling overwhelmed and reactive instead of calm and strategic
You’ve worked too hard this year to give money away unnecessarily.
Let’s Finish the Year with Clarity
The end of the year doesn’t have to feel frantic. It can feel like a turning point. A chance to not just close out the year but set the tone for the one ahead.
With the right guidance, year-end tax planning becomes less about what you owe and more about what you’re building.
Need a checklist and professional guidance? Reach out. We’ve got you covered.
At Insogna, we’re here to walk beside you not just for tax season, but as your strategic partner year-round.
Let’s plan the ending that helps you write the next chapter with more clarity, confidence, and purpose.